Vietnam has set a target to produce 1.7 million-2.16 million tons of vegetable oil by 2020, of which nearly 60,000 tons will be exported, according to a long-term development plan announced by the Ministry of Trade and Industry (MoIT).
Under the plan, the vegetable oil industry also aims to churn out 2 million – 2.65 million tons by 2025.
To fulfill the targets, Deputy Minister of Industry and Trade Bui Xuan Khu recommended that the Government should make bold policies to encourage the development of raw materials.
Khu also emphasized the toughest challenge faced by the industry was not a lack of capital to build more factories, but a lack of areas to grow raw materials.
The current oil industry was reliant primarily on imported materials, Khu said, adding that up to 90 per cent of raw materials must be imported.
At present, Vietnam has 35 vegetable oil producers throughout the country, which churn out 1.13 million tons of refined oil and 85,000 tons of unrefined oil per annum.
Statistics from the ministry showed that the vegetable oil industry generated a turnover of VND6.62 trillion (US$371.7 million) last year, accounting for 4.62 per cent of the total value earned by the country’s food and drink industry.
Last year, the vegetable oil consumption of Vietnamese people was estimated at seven kilograms per capita.
Vietnamese vegetable oil consumption is expected to grow by 8 per cent during 2008-2018 and 3.5 per cent during 2018-2025 period. This growth will result in a consumption volume per capita of 15.2 kilograms by 2018 and 19.4 kilograms by 2025.
Between 2000 and 2008, Vietnam’s vegetable oil imports increased 12.6 per cent on average, while exports decreased. Last year the import turnover was US$700 million.
Experts have warned that if Vietnam does not have an effective program to cultivate raw materials for vegetable oil, it will have to import US$1 billion worth of materials by 2015. (VnEconomy)
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