Since the beginning of the year, sugar prices in Vietnam have been the lowest in the region. The primary reason is an oversupply from the 2023/24 crushing season, with large volumes still in stock, combined with new-season (2024/25) sugar already entering the market. In addition, consumer trends are shifting increasingly towards the use of high-fructose corn syrup (HFCS), which has significantly weakened market demand.
According to VSSA, by the end of May 2025, sugar mills across the country had basically completed the crushing season with total output reaching over 1.2 million tonnes of sugar. However, domestic sugar consumption has faced serious difficulties, causing inventories to exceed 70% of total output — a record high in the industry’s history. Many factories have run out of storage space and were forced to sell off sugar at low prices to rotate capital and repay farmers, yet found no buyers.
The supply pressure has caused production costs to plummet, leaving many domestic sugar mills in a “no way out” situation. Several enterprises were forced to sell below cost just to pay debts to farmers, but even then could not find a market.
VSSA also reported that sugar smuggling from the southwestern border into Vietnam continues to be complicated, despite the government having issued several stringent directives and urgent instructions recently. Sugar of unknown origin is still widely present in the market. At the same time, HFCS — mainly imported from China and some ASEAN countries — is increasingly used in the food processing industry due to its low cost and high substitutability.
According to the General Department of Customs, HFCS import volumes in May were similar to the same period last year, but the pace of substitution in consumption has increased significantly in 2025. The loss of market share to HFCS has caused a steep drop in domestic cane sugar consumption, seriously affecting the entire industry value chain.
Vietnam imported 231.8 thousand tonnes of raw and refined sugar in the first five months of 2025, a slight decrease of 5% compared to the same period in 2024. Notably, most sugar imports occurred during the first quarter and declined in April–May. In Q1 alone, import volume reached approximately 175.2 thousand tonnes, up 40% year-on-year.
The composition of raw and refined sugar sources in the first five months of 2025 also changed significantly compared to the same period last year. Most notably, raw sugar from Australia — previously Vietnam’s primary supplier — was absent. Likewise, refined sugar from Indonesia decreased due to high prices, while refined sugar from Cambodia emerged as a new supply source during this period.
From January to May 2025, total raw sugar imports reached 104.5 thousand tonnes, down 31% year-on-year. Thailand was Vietnam’s main supplier, with large shipments concentrated in February. These imports were mainly used by large domestic producers for refining purposes, as the global raw sugar price eased, prompting renewed import demand from domestic producers.
As of May 2025, cumulative refined sugar imports reached approximately 127.3 thousand tonnes, up 38.91% compared to the same period in 2024. Import volumes remained stable in Q1 and April, averaging around 28.3 thousand tonnes per month. However, in May 2025 alone, import volume fell sharply by 39% from the previous month and 44% from the same period last year, reaching only 13.97 thousand tonnes. This drop was mainly due to sluggish domestic demand and an abundant market supply from domestic production, official imports, and even informal (border) trade. Notably, May 2025 also marked the emergence of new refined sugar sources such as Cambodia and Pakistan, along with a significant decline in imports from Indonesia.
As of 2025, Vietnam has approximately 25–30 operational sugar mills, a significant decline from over 40 mills in previous years. The number of mills has dropped sharply in recent years due to several reasons:
Fluctuating sugar prices, with prolonged periods of prices below production costs.
Competitive pressure from imported sugar and smuggled sugar.
Shrinking sugarcane cultivation areas, as farmers shift to more profitable crops.
Many mills, especially small-scale or inefficient ones, have been forced to shut down or switch to other business activities due to lack of competitiveness.
The remaining mills are mostly operated by large enterprises with modern facilities and relatively stable raw material areas, such as: Thanh Thanh Cong – Bien Hoa Sugar Joint Stock Company (TTC Sugar), Son Duong Sugar, Tuy Hoa Sugar, Lam Son Sugar...
T.Huong
Source: Vitic