The Government should issue policies to support the development of thedomestic oil, aroma and cosmetic industry, delegates said at the recentthird congress of the Vietnam Association of Oil, Aromas and Cosmetics.
Tran Binh Duyen, chairman of the Mediplantex National PharmaceuticalJSC, said there is a huge demand for essential oils and aromatic spicesboth in domestic and foreign markets.
Vietnam hasfavourable conditions to grow various kinds of oil plants, includingpeppermint, holy basil, cinnamon tree and anise, he said. Previously,the country had exported thousands tonnes of essential oils per year.However, the situation has completely changed in recent years since thecultivation areas for these plants shrank severely, he added.
Duyen attributed the situation to the lack of a long-term development plan as well as Government support.
In addition, the current high tariffs imposed on essential oil productshave made locally made products less competitive than imported ones, hesaid, requesting the Government to reconsider its policy in thisregard. However, other delegates at the congress disagreed, saying areduction in taxes might be impractical because it would have to extendto other agricultural commodities as well.
Hoang Van Duoc,the association’s chairman, said with the current situation ofsmall-scale production and backward production technology, enterprisesinvolved in the industry are only able to produce raw products with lowexport value, while refined essential oils are imported at much higherprices.
As a result, the industry has a very high annualtrade deficit of about 65-100 million USD, mostly because of the importof cosmetics and aromatic spices, he said.
Nguyen MinhKhoi, head of the National Institute of Medicinal Materials, said theindustry should seek ways to find more outlets for essential oilproducts that Vietnam has an advantage in.
It should also focus on growing high quality seedlings to replace poor quality plants, he said.
Delegates suggested that the association work with relevant ministries and localities to set up zoning plans for the industry.
The association, which has 80 members, said it will soon submit to theGovernment a five-year (2011-16) -development plan for the industry.
It will also work to set up a stable material zone for high value oil plants in the coming years, Duoc said.
The association will cooperate with local and foreign organisations tohold more seminars, training courses and trade promotion events tosupport its members.
It plans to set up a portal to provide more information to its members, he said./.
Tran Binh Duyen, chairman of the Mediplantex National PharmaceuticalJSC, said there is a huge demand for essential oils and aromatic spicesboth in domestic and foreign markets.
Vietnam hasfavourable conditions to grow various kinds of oil plants, includingpeppermint, holy basil, cinnamon tree and anise, he said. Previously,the country had exported thousands tonnes of essential oils per year.However, the situation has completely changed in recent years since thecultivation areas for these plants shrank severely, he added.
Duyen attributed the situation to the lack of a long-term development plan as well as Government support.
In addition, the current high tariffs imposed on essential oil productshave made locally made products less competitive than imported ones, hesaid, requesting the Government to reconsider its policy in thisregard. However, other delegates at the congress disagreed, saying areduction in taxes might be impractical because it would have to extendto other agricultural commodities as well.
Hoang Van Duoc,the association’s chairman, said with the current situation ofsmall-scale production and backward production technology, enterprisesinvolved in the industry are only able to produce raw products with lowexport value, while refined essential oils are imported at much higherprices.
As a result, the industry has a very high annualtrade deficit of about 65-100 million USD, mostly because of the importof cosmetics and aromatic spices, he said.
Nguyen MinhKhoi, head of the National Institute of Medicinal Materials, said theindustry should seek ways to find more outlets for essential oilproducts that Vietnam has an advantage in.
It should also focus on growing high quality seedlings to replace poor quality plants, he said.
Delegates suggested that the association work with relevant ministries and localities to set up zoning plans for the industry.
The association, which has 80 members, said it will soon submit to theGovernment a five-year (2011-16) -development plan for the industry.
It will also work to set up a stable material zone for high value oil plants in the coming years, Duoc said.
The association will cooperate with local and foreign organisations tohold more seminars, training courses and trade promotion events tosupport its members.
It plans to set up a portal to provide more information to its members, he said./.
