The sugarcane production sector in the country is entering its peak season for the 2024–2025 cycle, characterized by elevated sugarcane prices. Consequently, farmers in sugarcane-growing regions are experiencing higher incomes compared to previous periods.
Sugarcane prices increase, farmers make a profit
Phu Yen is one of the key sugarcane provinces with a raw material area of nearly 25,000 hectares and 4 sugar factories. Since the beginning of 2025, sugarcane prices have remained high, with factories offering up to VND1.23 million (US$48) per ton of sugarcane with 10 sugar degrees.
When additional costs are factored in, the price can reach VND1.33 million per ton—the highest level recorded since 2018. With sugarcane productivity ranging from 80 to 90 tons per hectare and sustained high prices, farmers are experiencing significant enthusiasm and optimism.
Farmer Nguyen Van Loc in Son Phuoc Commune of Phu Yen Province’s Son Hoa District said that a few years back, the price for a ton of sugarcane was merely VND1.1 million.
Currently, the price has met the expectations of the farmers, with factories now purchasing high-quality, uniform sugarcane for over VND1.3 million per ton. Sugarcane prices have risen not only in Phu Yen, but across the Central Highlands' sugarcane-producing regions, as factories have increased the rates paid to local farmers.
Farmer Le Thi To from Nghia An Commune of Gia Lai Province’s Kbang District revealed that her family members cultivate four hectares of sugarcane. According to her, thanks to the family’s investment in new sugarcane varieties, they earned approximately VND150 million this year after deducting all expenses. Moreover, this success is not only a personal achievement but also the result of strong collaboration between farmers and businesses, supported by favorable policies and stable purchasing prices from An Khe Sugar Factory.
Local farmers report a net profit of approximately VND40 million per hectare at current sugarcane prices. Notably, the Eastern Truong Son region features large-scale producers, exemplified by Mr. Le Cong Thi in An Khe Town of Gia Lai Province. With over 30 hectares of personal cultivation and investments in an additional 300 hectares managed by local cultivators, his family's net earnings are estimated at VND3 billion. A key factor driving this profitability is the strengthened collaboration between farmers and sugarcane processing facilities.
Deputy Director Nguyen Van Hao of An Khe Sugar Factory stated that since 2017, the large sugarcane field model has been widely implemented across the province, enabling farmers in Gia Lai Province to adopt mechanization and advanced agricultural techniques more effectively. To support the sustainable growth of the sugar industry, An Khe Sugar Factory has proposed to the Gia Lai Provincial People's Committee an expansion of its processing capacity from 18,000 tons per day to 25,000 tons per day, which would make it the largest-capacity sugar factory in the country.
According to the Ministry of Agriculture and Environment, the area of sugarcane in the chain linking farmers and sugar factories continues to increase and this helps sugarcane growers reduce the burden of investment capital for this crop. The total sugarcane growing area in the country in the 2024-2025 crop year is nearly 175,000 hectares, of which the area of sugarcane of farmers linked to sell raw materials to sugar factories accounts for 93 percent.
Many concerns still exist
According to the Vietnam Sugarcane and Sugar Association (VSSA), by the end of the 2023–2024 sugarcane production season, the Vietnamese sugar industry processed 11,204,789 tons of sugarcane, yielding over 1.1 million tons of sugar across various types. Compared to the 2022–2023 season, the processed sugarcane output increased to 117.9 percent, while sugar production reached 118.4 percent of the previous season’s levels.
The implementation of trade defense measures in 2021 has demonstrably revitalized Vietnam's sugarcane industry, resulting in sustained price increases. Current sugarcane purchase prices, approximately VND1.3 million a ton, align with regional standards, incentivizing expanded cultivation.
Despite the industry's positive performance, the sugar sector's current state remains bittersweet due to the problems of smuggled sugar and high inventory levels.
According to statistics, by early 2025, the Vietnamese sugar industry still has nearly 50 percent of the output of the 2023-2024 crop remaining.
Notably, in the 2023-2024 crop year, many acts of trade fraud related to smuggled sugar from Laos and Thailand to Vietnam have been detected by authorities in many provinces and cities across the country.
VSSA Chairman Nguyen Van Loc stated that smuggled sugar does not hold any advantage in terms of quality or price over domestically produced sugar. However, traders of smuggled sugar have engaged in dumping practices and have failed to comply with legal regulations and international commitments.
Vice Chairman Vo Thanh Dang of the Board of Directors and General Director of Quang Ngai Sugar Joint Stock Company, states that the lack of fair competition has put the Vietnamese sugar industry at great risk. Therefore, he suggested that the Government implement solutions to improve the health of the sugar market, particularly to combat smuggled goods and trade fraud.
