Two import tax hikes have significantly reduced the quantity of imported meat and poultry entering the country, but raised prices due to thin supply, the Agricultural Information Center under the Ministry of Agriculture and Rural Development said.
The center said total imports of meat and poultry declined 21 per cent-24 per cent compared to the period before the tax hike.
Last October, the Ministry of Finance (MoF) increased import duties on meat and poultry for the first time by 2 per cent in order to curb a flood of imported goods into the country.
The Ministry of Industry and Trade statistics showed in 2008 roughly 4,250 tons of beef and 1,000 tons of other meat were imported monthly compared to only 333 tons of beef and 10 tons of meat in previous years.
However, the tax hike did not do enough to prevent the influx of imported meat and poultry. To provide better protection for the domestic husbandry industry, in response to a Ministry of Agriculture and Rural Development proposal, the MoF instituted a second tax surge early last month, with a sharp rise from 17 per cent to 33 per cent on fresh and frozen beef.
Import duties on fresh and frozen pork were also raised to 28 per cent and 24 per cent, respectively. Pork, beef, lamb, mutton, goat and horse by-products also have higher rates than previously, ranging from 10 per cent to 15 per cent depending on type.
But Le Ba Lich, chairman of the Vietnam Animal Feed Association said pig meat price has been pushed to highest level over the past 40 years.
The price is VND42,000-VND45,000/kilo in southern region and VND40,000-VND41,000 in northern region. Lich said at these prices, pig in Vietnam is selling for higher level than any countries in ASEAN.
Experts said that Vietnam now imports pig meat mostly from the U.S. and Canada at around US$1/kilo (VND18,000). The meat is selling for VND45,000-VND60,000/kilo in Vietnam. (VNA, Vinanet)
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