l Fertiliser. The country's total consumption of various types of fertilisers is projected at 7.85 million tonnes, of which nearly 3.2 million tonnes will come from imports.

l Sugar. The nation's growing sweet tooth will result in demand for sugar rising 5-6 per cent over 2006, reaching 1.4 million tonnes.

According to the Viet Nam Sugar Association, domestic sugar-makers could meet this demand, but other factors cloud the picture.

The import tax will fall from 40 per cent to 30 per cent this year, and reach 5 per cent in 2010.

With domestic sugar costing US$27 (Bt965) to$30 per tonne and smuggling of cheap sucrose from neighbouring nations in the region rampant, Thai sugar, costing merely $21 per tonne, may prove sweeter to the local palate and make life bitter for domestic sugar-producers.

l Cement. The Ministry of Construction predicted demand of about 35 million tonnes, with the nation likely to import some 5.5 million tonnes.

Domestic supply and demand are expected to remain in balance during 2007, but prices are still likely to rise because of costlier coal and electricity.

l Fuel. Vietnam could import 13.3 million tonnes in 2007. According to market-watchers, global crude oil prices could average $64.70 per barrel.

l Steel. Demand could hit four million tonnes, a rise of 11 per cent, creating a need for around two million tonnes of imported ingot. Prices for imported ingot are high at $400-$420 per tonne, likely to drive the retail price to Bt18/kilo.

l Paper. The nation is projected to buy 1.87 million tonnes, with imports at 915,000 tonnes. Prices will likely rise due to costlier fuel and pulp.

l Pharmaceuticals. The import value is projected to climb to more than $22 million, 16 per cent higher than in 2006, while the value of domestic medicines will be only about $9 million.

VIET NAM NEWS

HANOI