A zero import tax rate applied to 40 types of agricultural products from Cambodia
has opened up a new source of materials for Vietnamese farm-produce processors, especially
those near the southwestern border with Cambodia, according to Vietnam's Trade Ministry.
Pham Thi Sum, chairwoman of the Board of Directors of the Bien Hoa Sugar Joint-Stock
Company, said the preferential tax rate enables the company to buy more materials
from Cambodia for its Tay Ninh Crude Sugar Plant to ease its shortage.
The Cambodian provinces of Kampong Cham, Svay Rieng and Prey Veng have large areas
of unused land suitable for sugar cane growing, Sum said.
In recent years, several companies in Tay Ninh have invested in sugar cane and cassava
growing in Cambodia to supply materials for their plants.
Rubber processing enterprises also described the import tax cut as a great boost
to their production.
At present, many Vietnamese farmers in localities bordering Cambodia have also invested
in rice farming in Cambodia, and expect to import a large volume of rice from these
farms for processing for export.
The zero import tax rate is applicable to 40 agricultural product categories from
Cambodia, including those made from cassava, sweet potato, cashew nuts, pepper, rice,
corn, soybeans, peanut, castor beans, sesame, seaweed, sugar cane, and raw rubber.