|Imported monosodium glutamate will be taxed at nearly VND4.4 million per tonne in Viet Nam. - Photo vca.gov.vn|
The monosodium glutamate will be taxed at nearly VND4.4 million (US$197) per tonne, reported the ministry's Vietnam Competition Authority (VCA) on March 14.
The move is expected to create favourable conditions for domestic producers to overcome the serious damage caused by the increased import of monosodium glutamate in recent years.
Monosodium glutamate producer Vedan Viet Nam had requested the VCA to apply these protective measures on June 22, 2015.
In September, the Minister of Trade and Industry signed the decision on the issue. Questions related to the investigation were also sent to the relevant bodies.
According to Vedan, from 2012 to 2014, the import of monosodium glutamate to Viet Nam had sharply increased from countries such as China, Thailand and India. Of these, China took the lead, with 76 per cent of the total imports.
Statistics released by the VCA showed that the import of monosodium glutamate had doubled in 2012 and had increased by 172 per cent in 2013 and 441 per cent in 2014.
According to WTO regulations, the protective measures for imported monosodium glutamate must be removed in four years, with a reduction of 10 per cent per year. This timetable aims to ensure the domestic producers will have enough time to recoup their losses.
By March 25, 2020, the tax will be dropped to zero per cent, unless the protective measures are granted an extension.