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Vietnam proposes to lift import duties on PP

November 13/2019

MOSCOW (MRC) -- It is reported that the Vietnamese Finance Ministry has received several petitions from local companies to adjust the import duties imposed on propane and polypropylene (PP). The Ministry thereafter proposed its plans for the import duties on the mentioned products, as per CommoPlast.

For propane, with HS code 2711.12.00, the petition called for a reduction from the current 2% to 0%. However, the Ministry informed that the existing local supply can fulfill up to 45% of the domestic demand and that the duties have been adjusted from 5% to 2% on 1 January 2018, therefore, no changes would be made for the time being.

Meanwhile, by 2020, Vietnam would have three PP producers with a total output of approximately 850,000 tons per annum, meeting about 71% of domestic consumption. To encourage local companies to use locally produced cargoes and reduce the dependency on import materials, the Ministry proposed to increase the import duties from 3% currently to 5% in 2020.

However, the Ministry has yet to issue any official circular while continue collecting feedback from the industry.

As MRC informed earlier, Binh Son Refining and Petrochemical took a PP plant in Vietnam off-stream for a maintenance turnaround in June 2017 for a period of around 7 weeks. The exact date shutdown could not be ascertained. Located in Vietnam,the plant has a production capacity of 150,000 mt/year.

According to MRC's ScanPlast report, the estimated PP consumption in the Russian market was 976,790 tonnes in January-September 2019, up by 4% year on year. Shipments of PP block copolymer and homopolymer PP increased
Author:Margaret Volkova
Tags:PP, PP block copolymer, homopolymer PP, Vietnam, Russia.
Category:General News
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