Vietnam. Oilseeds and Products Annual. Apr 2013 Май 4, 2013
In 2012, U.S. soybean exports to Vietnam reached a record of 461 thousand metric tons (TMT), double the 2011 level due to high demand from the two commercial oilseed crushing facilities, and from the food industry. In 2013, U.S. soybean exports are expected to reach about 500 TMT. In 2012, Vietnam’s soybean meal (SBM) imports were 2.5 million metric tons (MMT). Post forecasts 2013 and 2014 SBM imports to gradually decrease due, to 2.4 and 2.37 MMT, respectively, due to local production. Local soy oil production and exports have been increasing in recent years as results of larger crush and greater oil availability. Soy oil exports are projected at 110 TMT and 120 TMT in 2013 and 2014, accordingly.
Vietnam’s oilseed production continues to fall well below demand from the food industry; the livestock and aquaculture feed sectors, and the vegetable oil industry. Despite, the uncompetitive nature of local soybean production, the Vietnamese Government’s Master Plan for Oilseeds prioritizes further development of the sector with the objective of 350 thousand ha and a production of 700 thousand tons by 2020. However, Post doubts that production will increase as much as the Government of Vietnam desires due to the high input costs and generally low yields of oilseeds crops, and slow expansion of growing areas. In the longer term, the protein deficit in the animal feed sector will continue to grow as domestically cultivated protein, particularly soybeans, fails to keep pace with the robust demand.
Imports of soybeans in 2012 reached a record of 1.29 MMT. This represents a 26 percent increase over the previous year; 36 percent of the total imported volume was sourced from the United States. U.S. soybeans exports to Vietnam also reached a record of 461 TMT, double the 2011 level due to the increased demand from the food processing, and livestock and aquaculture feed industries. Post forecasts soybean imports will reach 1.45 MMT and 1.55 MMT in 2013 and 2014, respectively.
Although Vietnam started domestically producing SBM on an industrial scale in 2011, Vietnam continues to import SBM to offset the protein shortage in the country. In marketing year 2011/12, Vietnam imported about 2.5 MMT of SBM, a drop of about 22 percent from the previous year due to the newly available supply from domestic crushers. In 2012, U.S. SBM exports increased to 116 TMT, an increase of 76 percent over the previous year as shipments picked up during the last three months of 2012. Post projects Vietnam’s SBM imports to decline slightly in 2013 and 2014 as the local production will fill the growth of feed industries.
In 2012, Vietnam produced about 214 TMT of soy oil from commercial crushing facilities, but continued to import an estimated 669 TMT of crude and refined vegetable oils, to meet local consumption and export demands. In 2012, refined vegetable oil imports increased by 43 percent over the previous year to 605 TMT as the import tariff for refined oils from ASEAN countries was reduced to zero. Consequently, the zero duty on refined oil, combined with the rising availability of domestically produced crude oil caused crude oil imports to drop about 79 percent from the previous year. Post forecasts that total vegetable oil imports in 2013 will remain in the 670-740 TMT range. Growth in imports will be slowed due to the rise in locally produced soybean oil. In 2012, Vietnam exported an estimated 114 TMT of vegetable oil. Post estimates soy oil exports at 110 TMT and 120 TMT for MY 2012/2013 and MY2013/2014, respectively.
Vietnam’s 2012 soybean production decreased 34.3 percent from the previous year to 175.2 thousand metric tons (TMT) as severe cold weather at the end of 2011 and in early 2012, reduced yield and harvested area. The scale of production remains relatively very small and continues to fall far short of domestic demand. In 2013, Post expects the growing area to expand back to 2011 levels of about 180 thousand ha and production to increase to 270 TMT. The soybean cultivation area is currently concentrated with 65 percent in the North and 35 percent in South.
Despite, the uncompetitive nature of local soybean production, the Vietnamese Government’s Master Plan for Oilseeds prioritizes further development of the sector with the objective of 350 thousand ha and a production of 700 thousand tons by 2020. The Master Plan focuses further development on the Red River Delta, midland, and mountainous areas in the North and Western Highlands. However, Post doubts that production will increase as much as the Government of Vietnam desires due to the high input costs and generally low yields of oilseeds crops, and slow expansion in growing areas.
According to local industry, the locally produced soybeans are not as price competitive as imported soybeans. For example, local soybeans are currently quoted at Vietnamese dong (VND) 16,000 ($0.77) – VND 17,000 (0.82) per kilogram (kg), while the imported soybeans cost VND 14,600-VND 15,000 ($0.70-$0.71) per kg. Competitiveness is a major disincentive to the expansion of the soybean sector overall.
Currently, the regulatory framework to evaluate and approve the cultivation biotech crops and for utilization of biotech agriculture for food and feed use are under development. The Vietnamese Ministry of Natural Resources and Environment (MONRE) has been working on the Circular on the Procedure to issue Bio-Safety Certificate for Genetically Modified Organisms (GMO) since last year. The Circular provides legal frame for agricultural biotechnology to be legally cultivated in Vietnam following successful field trials conducted by the Ministry of Agricultural and Rural Development (MARD). MONRE’s Circular will permit the legal cultivation of biotech corn, cotton, and soybeans, once a biotech trait receives the Bio-safety Certificate from MONRE.
MARD is also developing the Circulars on the approval of GMO products allowed for feed and food use. For more information on agricultural biotechnology in Vietnam, please refer to VM2071 for more details.
In conclusion, despite government efforts, growth in oilseed production has fallen far short of fulfilling the country’s protein needs. In the longer term, the protein deficit in the animal feed sector will continue to grow as domestically cultivated protein, particularly soybeans, fails to keep pace with the robust demand.
Locally produced soybeans, along with imports, are used to meet the growing domestic demand for both human consumption and the animal feed industry. Domestically produced, full fat soybeans are mainly used for various food products such as tofu, soy milk, and soy flour for the food processing industry; smaller quantities are used for soy sauce, miso paste, the ice-cream industry, and household-scale soybean oil production. Only a small portion of the soybeans produced in Vietnam are used for animal feed. Imported soybeans continue to feed Vietnam’s two industrial-scale soybean crushing plants which began operation in 2011. Annually, approximately 80 percent of imported full fat soybeans went to crushing industry, 5 percent went directly to the animal feed industry, and 15 percent to human consumption, according to local industry.
The demand for protein (including full fat soybean and soybean meal) for especially livestock and aquaculture industries is likely to increase in the coming years. Commercial animal feed production in Vietnam grew by 10.2 percent in 2012 over the previous year in response to robust livestock sector growth. MARD estimates that the demand for locally-produced commercial feed will grow to 14 million metric tons (MMT) to produce about 4.7 MMT of meat by 2013. Soybean derived protein makes up a large component of the feed utilized in the livestock sector.
Additionally, local demand for healthier vegetable oil, including soy oil, as well as export demand to other countries in the region remains stable but potentially could restrict crushing potential in the near term as demand for soy oil is far less than the demand for soybean meal, domestically.
Currently, Vietnam’s two soybean crushing facilities, Bunge Vietnam and Quang Minh Corporation (QMC), remain operational with total capacity of 4,000 MT per day. In 2012, Bunge Vietnam crushed 900 TMT of soybeans from the United States, Argentina, and Brazil, providing 650 TMT of soybean meal and 180,000 MT of crude degummed soy oil to the market. Bunge is planning to crush one million tons of soybeans in 2013. In 2012, QMC crushing plant used about 140 TMT of soybeans,mainly from the United States, Canada, Argentina and Paraguay. QMC is planning import about 250 TMT of soybeans for crushing in 2013. Based on these estimates, Post revises the MY 2011/12 crush estimate to 1.04 MMT, and the MY 2012/13 estimate down to 1.23 MMT. Post’s preliminary estimate for MY 2013/14 crush is 1.3 MMT based on capacity limits of Vietnam’s crushing plants.
Food use domestic consumption of soybean products continues to grow; Post estimates the growth in food use consumption of soybeans at about 6 percent a year. Post’s MY 2012/13 and 2013/14 food use consumption estimate are 340 TMT and 360 TMT, respectively.
Post projects the demand for imported full fat soybeans will continue to grow in the coming years as the two crushing plants utilize more processing capacity and the food use demand continues to grow.
In Calendar Year 2012, Vietnam imported 1.29 MMT of full fat soybeans, a 26 percent increase over the previous year due to strong demand from both the food and feed sectors. In 2012, approximately 45 percent of Vietnam’s soybean imports came from Brazil; 36 percent from the United States, 9.5 percent from Canada, and the rest are sourced from Argentina, Uruguay, China, and other countries. Vietnam’s soybean import from the United States reached a record of 461 TMT, double the 2011 level. The United States’ market share also increased to 36 percent from 22 percent last year thanks to high and consistent quality of beans, and very strong U.S. competiveness during the last three months of 2012 when the United States exported 57 percent of their total soybean exports to Vietnam.
Soybean import value also reached a record $776 million in 2012, a 41 percent increase over the last year, due to high prices in the global market. According to local traders, high prices will spur more deals with U.S. soybean exporters in early 2013.
Under the current tariff structure, soybeans enjoy a zero percent tariff for imports from WTO member countries creating a very favorable environment for further imports from the main soybean exporters. Post forecasts MY 12/13 soybean imports at 1.45 MMT, based on Post’s projections for the operation of Vietnam’s oilseed crushing plants and strong demand from the food sector. Post’s initial MY 13/14 import estimate is 1.55 MMT as the growth in imports slows as the crushing facilities near their respective crushing capacities.
Marketing efforts in Vietnam for U.S. soybeans and soybean meal are continuously supported by the American Soybean Association – International Marketing (ASA-IM) office in Hanoi. The USDA’s Export Credit Guarantee Program (GSM-102) also continues to support the growth of soybean exports to Vietnam. The GSM-102 transactions for soybean exports in fiscal year 2012 (Oct. 2011-Sept. 2012), which accounted for 32 percent of the total exports financed by GSM-102, increased 37 percent when compared with the previous fiscal year. For the first four months of FY2013, soybeans continued to dominate GSM-102 usage for Vietnam.
Currently, soybean imports are shipped in both containers and bulk vessels, through major sea ports in both northern and southern Vietnam. Bulk import shipments of soybeans are more competitively priced but only a handful of Vietnamese importers can support buying at bulk volume levels.
Bulk commodity shipments shipped in vessels between 50,000 deadweight tonnage (DWT) and 75,000 DWT arrive at three deep-water ports in Vietnam: 1) Phu My-Ba Ria Serece port and 2) the new Cai Mep-Thi Vai International port, both located on the Thi Vai River of Ba Ria - Vung Tau Province in Southern Vietnam; and 3) Cai Lan port in Quang Ninh Province in Northern Vietnam.
In late January 2013, Cai Mep-Thi Vai International Port in Tan Thanh District, Ba Ria - Vung Tau, was inaugurated. The Cai Mep - Thi Vai port would boost the development of the southern key economic zone. The port would also help reduce pressure on the ports in Ho Chi Minh City, and contribute to the long-term plan to relocate the ports on the Saigon River and Ba Son shipyard to deeper waters closer to the coast.
In addition to continued development of port infrastructure, local traders/importers continue investing in expanded warehouse/storage capacity near seaports to meet the growing demand of agricultural product imports. For example, in 2012 QMC continued to expand their flat warehouse capacity with a new 50-TMT capacity warehouse, increasing their total capacity to 170 TMT in Phu My port, Vung Tau Province.
Vietnam’s average import price for soybeans in 2012 was $606/MT, the highest price in the past five years, and about a 13 percent increase over the previous year ($537/ MT). Local traders forecast that soybean import prices will remain high due to strong demand in the world market, rising oil/gas prices, higher ocean freight costs, and lower projected global production for the 2012/13 crop, especially due to production reductions in Argentina. Import prices for grade 2 full fat soybeans were quoted $650, and $630 per MT, CFR Haiphong for shipment in March and April 2013, respectively, indicating a further increase in prices in early 2013 compared to 2012.
The tariff rate applied to soybeans (HS Code: 1201) imported from countries having Most Favored Nation (MFN) status with Vietnam remains 0 percent with 5 percent VAT.
According to GSO statistics, Vietnam’s peanut production increased slightly in 2012 to 471 TMT from the previous year output of 469 TMT. 2012 planted area decreased by 1.5 percent.
In 2013, Post expects growing area to increase to 240 thousand ha and production to increase about 10 percent to 520 TMT. Favorable weather and variety improvement will boost yield and production. In 2014, Post forecasts peanut production will continue to increase, to 550 TMT, as peanut cultivated area continues to expand. The peanut planting area is focused in the North Central coast, mountainous and midland areas in the North, and the South Central Coast.
The majority of peanuts, locally produced and imported, are used in the snack and confectionery industries with a small amount used in-shell for household consumption, extruded for cooking oil, or exported. Post estimates that 650 TMT of peanuts (in-shell basis) were consumed domestically in Vietnam in 2012. In 2013 and 2014, Post estimates peanut consumption at 700 TMT and 750 TMT, respectively.
Post revised Vietnam’s peanut import data in 2011 and 2012 to include HS code 120210 and 120241 for in-shell peanuts, as well as, HS code 120220 and 120242 for shelled peanut. Vietnam’s total peanut imports (in-shell equivalent) were 327 TMT in 2012. Both in-shell and shelled imports, mainly from India, Senegal, Paraguay and China, are used by the developing snack food industry in Vietnam. Post forecasts imports to be 250 TMT (in-shell basis) in MY 2012/13, and fall slightly to 220 TMT in MY 2013/14.
In MY 2011/12, Vietnam exported a small quantity of in-shell and shelled peanuts, mainly to Thailand, Malaysia, and Taiwan. Post forecasts that peanut exports will remain minimal in MY 2012/13 and MY 2013/14.
Historically, Vietnam produced a negligible amount of SBM due to a lack of commercial crushing facilities. However, in mid-2011, two new crushing plants started operations profoundly changing the oilseed and livestock sectors in Vietnam (See Commodities: Oilseed, Soybean). Domestic SBMproduction has grown astronomically since mid-2011 and displaced a substantial volume of SBM imports. Domestic SBM production was estimated at 780 TMT in MY 2011/12 will continue to grow until limited by the capacity of the existing crush facilities. However, demand for soy oil serves as a potential limiting factor in meal production over the long term (See Commodities: Oil, Soybean). Post revises the estimate for MY 2012/13 SBM production down to 920 TMT, and forecasts MY 2013/14 SBM production at 980 TMT.
Almost all SBM, both domestically produced and imported, is used in the animal and the aquaculture feed industries to meet surging demand for animal and aquaculture protein for the domestic populace and for export. By livestock sector, about 70 percent of SBM goes to hog feed, 15 percent to poultry feed, 10 percent to aquaculture feed, and 5 percent to other uses, according to the American Soybean Association office in Vietnam. Vietnam imports only a small volume of soy flour which is used in both food and feed industries. In MY 2011/12, SBM consumption was estimated at 3.15 MMT. For MY 2012/13, Post revises the SBM consumption estimate down from the previous estimate to 3.3 MMT, an increase of 4.8 percent from the previous year. Post’s initial MY 2013/14 SBM consumption estimate is 3.45 MMT, reflecting steady, continued growth in the livestock sectors. Post estimates locally produced SBM will capture 28 percent of the market in MY 2012/13, and increase slightly to 28 percent in MY 2013/14.
Although Vietnam started domestically producing SBM on an industrial scale in 2011, Vietnam continues to import SBM to offset the protein shortage in the country and meet the growing demand of the feed industry. In MY 2011/12, Vietnam imported about 2.5 MMT of SBM, a drop of about 18percent from the previous year due to the newly available supply from the domestic crushers.
Post estimates SBM imports in MY 2012/13 will slightly decrease to 2.4 MMT, and in MY 2013/14 stabilize at about 2.4 MMT as livestock sector growth begins to outgrow the existing domestic crushing capacity.
In 2012, Argentina remained the largest supplier of SBM to Vietnam, accounting for about 52 percent, up from 44 percent market share in 2011. India, the other main supplier of SBM to Vietnam, saw their market share drop to 19 percent in 2012, from 37 percent in 2011 as the price competitiveness of Indian SBM weakened as world prices increased. Importers view the protein level of Indian SBM as low compared with Argentine, Brazilian, or U.S. SBM, and when world prices are high, Vietnam is more inclined to purchase from sources other than India.
This force was at play at the end of 2012 when high international prices created a very favorable environment for U.S. SBM exports. In 2012, U.S. SBM exports increased to 116 TMT, an increase of 76 percent from 2011 as shipments picked up during the last three months of 2012. The U.S. market share in Vietnam remained very small in 2012, accounting for only 4.7 percent, but market share increased from 2.2 percent in 2011.
In normal years, U.S. SBM faces strong competition from India and Argentina in this market, due mainly to cost competitiveness. When the price differential between U.S. and South American / Indian SBM is large, U.S. exports suffer. Additionally, shorter shipping time from China and India; and the increase in domestically produced SBM have negatively impacted U.S. SBM exports. Due to these factors, Post forecasts U.S. exports to Vietnam at 120 TMT in MY 2012/13, and stabilize at approximately 115 TMT in MY 2013/14.
In 2012, Vietnam also imported a small volume of soybean flour (about 4 TMT) mainly from Malaysia, and Japan, of which 80 percent was used for the feed industry and 20 percent for the food industry. Since 2013, the import tariff duty for soybean flour (HS code: 120810) dropped to 8 percent from 12 percent, reinforcing future imports of soy flour. Post projects soy flour import should slowly increase in 2013 and the coming years as demand continues to grow due to population growth and rising incomes.
Vietnam’s average SBM import price in 2012 was $509 per metric ton, the highest price on record, and about 15 percent higher than the previous year ($443).
Currently, imported prices are quoted at around $530-$532/MT CFR Haiphong for shipment in early April 2013 (any origin), and at around $515-$516 for shipment in May/June 2013. The quotation for U.S. SBM is at around $569-$570/MT CFR Haiphong. Local traders project that the import prices could be volatile, but will likely remain at high level in 2013 as demand is still high. According to localimporters, more shipments for Argentina SBM will be traded in the months of April, May, June and July, and more shipments traded for U.S. SBM in the months of September and October.
In the face of high prices, the feed industry tends to use cheaper ingredients to lower production costs. An increasingly large segment of the industry recognizes the value in using high-protein SBM, however, local feed mills are flexible and switch to a variety of feed ingredients if SBM is difficult to acquire.
All imported oilseed meals are used for animal and aquaculture feed industries (See: Commodity: Meal, Soybean/Consumption).
In 2012, Vietnam imported about 1.9 MMT of other oilseed meals, valued at $406 million, a 64 percent increase in volume and 57 percent increase in value, compared with 2011. This large growthin other oilseed and feed ingredients reflects increased demand for substitute protein sources as SBM prices rose during the last half of 2012. Various oilseed meals, distillers dried grains with solubles, and corn gluten meal imports reached 2.35 MMT in 2012, accounting for about 49 percent of total feed ingredient imports, while SBM accounted for 51 percent, to meet greater demands from feed industry. This rise in imports illustrates the increasing sophistication of feed millers in Vietnam, who are able to substitute lower cost protein feeds in their feed programming, seamlessly.
The tax rate applied to other oilseed meals imported from countries having Most Favored Nation (MFN) status with Vietnam remains 0 percent with a 5 percent VAT.
Vietnam’s 2012 refined vegetable oil production was estimated by local producers at about 700 TMT for all type oils, a 22.5 percent increase over the previous year. In 2013, refined oil production is forecast to increase to 800 TMT as refiners continue to take advantage of the growth in locally produced crude soybean oil. Despite increasing production, domestic refiners report fierce price competition from imported consumer oriented refined oils, especially palm oil.
The vegetable oil industry continues to use both domestically produced crude oil products (mainly sesame, peanut, soybean, and rice bran), and imported crude and refined oils (mainly palm and soy oils) for production.
The GVN’s Development Plan for Vietnam’s Vegetable Oil Industry up to 2020, and Vision to 2025 states that Vietnam’s production target is 1.587 MMT of refined vegetable oil and 370 TMT of crude vegetable oil of all types by 2020. In light of this, Vietnam plans to expand growing areas for major oilseed crops, namely soybeans, peanuts, sesame, copra, sunflower, and rice bran to meet the demand of local vegetable oil refining industry.
The two industrial soybean crushing facilities produced an estimated 214 TMT of crude soy oil in 2012. Of the estimated 214 TMT of crude soy oil produced in Vietnam, approximately 55 percent was refined into finished vegetable oil in Vietnam. In MY 2012/13, both facilities will continue to expand oil production due to increased soybean crushing, and together, will produce an estimated 240 TMT of crude and refined soybean oil, a 12 percent increase over 2012. Post forecasts MY 2013/14 soy oil production at 260 TMT.
Local producers estimated Vietnam’s 2012 total vegetable oil consumption at 750 TMT, an 8 percent increase over the previous year. Although no official data is available for vegetable oil consumption per capita, Post projects extremely strong growth in consumption, including soybean oil, as demand continues to grow driven by rising consumer incomes and increased urbanization. Additionally, consumer awareness of healthier vegetable oils is increasing as evident of the increased consumption of more costly refined oils. Olive oil is also increasingly used in big cities due to the perceived better taste and health concerns. Vietnam’s vegetable oil consumption per capita was estimated to be 8.3-8.5 kg per person in 2012 per local producers, which was below the world average of 13.5 kg per capita per year. The Industry Policy and Strategy Institute (IPSI) and local producers’ project per capita consumption will increase to 18kg per person per year by 2020.
According to local producers, common vegetable oils for Vietnamese consumers are palm, soy, olive, sesame, peanut, sunflower, and canola (rapeseed) oil. Among the 70 brand names of vegetable oils available in Vietnam, the preferred brand names in Hanoi are Simply, Neptune and Mezan from the Cai Lan Oils and Fats Company, while Tuong An is preferred in Ho Chi Minh City. Golden Hope Nha Be’s Marvela brand is preferred in Southern Vietnam. All these companies are either wholly owned or joint stock companies of the Vietnam Vegetable Oil Industry Corporation (VOCARIMEX), the state owned enterprise. Cai Lan Oils & Fats Industries Co continued to lead sales in 2012 with about 50 percent market share nationwide. Tuong An Vegetable Oil and Golden Hope Nha Be followed with 20-23 percent and 11-12 percent market share, respectively.
In 2012, new vegetable oil producers, Quang Minh Group and Vinacommodities Company established new brand names: Mr. Bean, Oila, Soon Soon (Quang Minh); and Otran, Eliza, Chica, and VinaCooking Oil (Vinacommodities). Both companies reportedly are large exporters of crude and refined oils. Post estimates that these companies were responsible for over 30 percent of Vietnam’s vegetable oil exports in 2012 and are actively developing markets in ASEAN, North Korea, Hong Kong, Australia, China, and Ghana. Bunge Vietnam is other major oil exporter, reported exports about 40 percent of the crushing facility’s oil production to South Korea and ASEAN countries.
Most imported soybean and palm oil are currently for food use; only a small volume of imported oil is used in the industrial and cosmetic manufacturing sectors and feed industry. Post estimates local consumption at 610 TMT for palm oil and 171 TMT for soybean oil in MY 2012/13, respectively. In MY 2013/14, Post forecasts local consumption of palm oil at 625 TMT and soy oil at 181 TMT.
Trade: Imports of vegetable oils (both crude and refined)
Vietnam’s vegetable oil industry continues to rely on imported crude and refined oil to meet consumer demand, although domestic crude soybean oil production is increasing. In 2012, Vietnam imported an estimated 669 TMT of crude and refined vegetable oils of all types, a drop of 8.8 percent from 2011 due to the increasing availability of local soy oil.
In 2012, Vietnam’s refined vegetable oil imports reached a record 605 TMT, an increase of 43 percent over the previous year as the import tariff for refined oils from ASEAN countries was reduced to zero. Consequently, this zero duty on refined oil, combined with the rising availability of domestically produced crude oil caused crude oil imports to drop about 79 percent from the previous year. The zero percent ASEAN duty has put imported, consumer-ready oils on a level playing field with domestically produced consumer-ready oils, creating fierce competition in the Vietnam market. This has prompted local vegetable oil producers to seek assistance from the Vietnamese Ministry of Industry and Trade and Ministry of Finance citing unfair import competition.
Total palm oil imports (both crude and refined oils) were 598 TMT in MY 2011/12, an increase of 3.2 percent compared with the previous year, and accounted for almost 89 percent of total vegetable oil imports.
Total crude and refined soy oil imports were 53 TMT in 2012, a drop of 59 percent. Soy oil account for about 7.9 percent of total vegetable oil imports. Only a tiny amount of other vegetable oils, including olive oil, sunflower oil, canola oil, copra oil, peanut oil etc., were imported in refined consumer-ready packaging. Post forecasts that total vegetable oil imports in 2013 will remain in the 670 – 740 TMT range. Growth in imports will be slowed due to rise in locally produced soybean oil.
Imports of crude vegetable oil
Vietnam’s total crude vegetable oil imports in 2012 dropped about 79 percent from the previous year to about 65 TMT due to zero import tariffs for both crude and refined oils from ASEAN countries.Crude soy oil from Argentina, Thailand and Brazil accounted for almost 70 percent of total crude vegetable oil imports. Palm oil from Malaysia and Indonesia accounted for much of the remaining crude vegetable oil imports.
Crude oil imports will likely remain at 2012 levels as long as the zero percent duty on refined oils from ASEAN countries remains in effect.
Imports of refined vegetable oil
Vietnam’s refined vegetable oil imports for 2012 reached a record to 605 TMT, an increase of 43 percent over the previous year. Palm oil imports from Malaysia, Indonesia, and other countries accounted for about 97 percent of total refined vegetable oil. Soybean oil and other vegetable oils accounted for 3 percent of the total refined vegetable oil imports in 2012.
In MY 2012/13, Post forecasts growth in refined oil imports to continue, reaching an estimated 620 - 640 TMT. Of this estimate, Post forecasts soy oil imports and palm oil imports for MY 2012/13 at 45 TMT and 620 TMT, respectively. Post’s initial forecast for MY 2013/14 pegs soy oil imports at 40 TMT and palm oil imports at 630 TMT. As was the case in 2012, the preponderance of refined vegetable oil imports will continue to be palm oil due to the zero percent import duty for ASEAN countries and ASEAN’s strong competitiveness in the palm oil sector.
Since 2013, import tariff for both crude and refined vegetable oil from ATIGA (ASEAN) countries dropped to 0 percent.
Currently, there is no official export data available for vegetable oils. In previous years, VOCARIMEX companies were the main exporters of vegetables oils in Vietnam. In 2011, new producers also began exporting vegetable oil products overseas (See: Commodity, Oil/Consumption). According to available trade data from Global Trade Atlas, Vietnam exported an estimated 114 TMT of all types of vegetable oils in 2012, valued at an estimated $150 million dollars.
Exports of both refined and crude soybean oil skyrocketed in 2012 reaching over 109 TMT, with crude soy oil accounting for 82 percent of total Vietnamese vegetable oil exports. Post estimates MY 2012/13 soy oil exports at 110 TMT and forecasts MY 2013/14 exports at 120 TMT, due to larger crush and greater oil availability