Sweet deal: A small boat sails near a container ship at a port in Ho Chi Minh City. Vietnamese sugar producers have been advised to capitalise on high prices to strengthen domestic sugarcane production and rely less on imports. — AFP
HANOI: Sugar could become more expensive during the remaining months of 2023, according to the Vietnam Sugarcane and Sugar Association.
Data from the Vietnam Commodity Exchange showed global sugar prices had reached US$161 per tonne in nearly November, a 150% increase compared to the beginning of the year, marking the highest price in the last 12 years.
Industry experts said a decrease in supply as India and Thailand, two of the two largest producers, lowered their output was the main factor behind recent price hikes.
Thanh Thanh Cong-Bien Hoa JSC, a major sugar producer in Vietnam with a 46% market share, said the company’s revenue increased to 5.9 trillion dong during the first three quarters of 2023, a nearly 20% increase compared to the same period in the previous year, fetching 663 billion dong in pre-tax profit.
After-tax profit, however, plummeted by 17% as the company struggled with high interest rates, paying out over 444 billion dong on interest payments, almost double the amount recorded in 2022.
Lam Son Sugar reported its highest growth, 471 billion dong in revenue and 17 billion dong in profit, a 55% and 113% increase, respectively, compared to the same period in 2022.
In an earlier development, Lam Son Sugar announced a plan to import 40,000 tonnes of raw sugar this year, as part of an effort to meet its annual target.
Son La Sugar also reported strong growth with a revenue of 431 billion dong and profit of 119 billion dong, an increase of 26% and 47%, respectively, compared to the period last year. An effort to reduce financial costs by Son La Sugar has yielded stronger profits and was on its way to meeting this year’s fiscal target.
Quang Ngai Sugar reported an after-tax profit of 506 billion dong for the third quarter of 2023, a 60% increase compared to the same period last year, but slightly lower than its performance during the first and second quarters of 2023.
In total, Quang Ngai Sugar reported a total revenue of 7.74 trillion dong during the first nine months of the year, an increase of 23% compared to the same period last year, with sugar being the strongest growth driver for the company, fetching 3.12 trillion dong in revenue and 1.26 trillion dong in gross profit.
With just a few months left before the end of 2023, the price of sugar will likely increase due to higher demand, typically seen towards the Tet (Lunar New Year) Holiday.
Meanwhile, inventory has been running low for some time, prompting experts to anticipate difficulties on the supplier’s side in the domestic market. They advised sugar producers to capitalise on high prices to strengthen domestic sugarcane production and rely less on imports. — Viet Nam News/ANN
