Vietnam probes MSG imports
Vietnam probes MSG imports
The Ministry of Industry and Trade has decided to launch an investigation into monosodium glutamate (MSG) imports months after Vedan Vietnam Co. proposed a safeguard duty on the flavor enhancer.
On June 9, the ministry’s Vietnam Competition Authority (VCA) received a petition from Vedan for a safeguard measure against MSG imports.
In 2012-2014, MSG imports rocketed, especially from the world’s leading producing countries like China, Thailand and India, according to Vedan Vietnam.
The authority said MSG imports grew 100% in 2012 compared to the previous year, 172% in 2013 and 441% last year, but did not give specific volumes. The amount of MSG imported from China made up 76% of the total.
According to Vedan’s request, after the U.S. and European countries imposed anti-dumping duties of 8.3-8.32% and 33.8-39.7% respectively on MSG products imported from China in 2013, China started to boost exports to Southeast Asia.
The volume of Chinese MSG shipped to Vietnam last year surged 2.8 times over 2013.
Currently, MSG imports from countries with most favored nation (MFN) treatment are subject to a tariff of 20%. But the tax is 0% for imports from ASEAN countries and China in accordance with Vietnam’s commitments to the ASEAN Trade in Goods Agreement (ATIGA) and the ASEAN-China Free Trade Area (ACFTA).
Vedan claimed that the sharp increase of MSG imports had caused injury for it as its market share and revenue shrank.
According to the trade ministry, Vedan’s products currently account for around 47% of the nation’s total MSG output. Miwon Vietnam Co. Ltd. supports Vedan’s petition.
This is Vietnam’s fourth probe into imported products. Previously, the country launched investigations into vegetable oil and float glass imports and an anti-dumping probe into stainless steel imports.
