Rice profits up around 15 pct

By Tat Dat February 20, 2022 | 05:08 pm PT

Farmers harvest rice in the Mekong Delta Province of Hau Giang. Photo by VnExpress/Nguyet Nhi

Major rice producers and exporters saw their after-tax profits last year increase around 15 percent against the previous year thanks to stronger domestic and overseas sales with higher export prices.

Loc Troi Group JSC reaped the biggest-ever revenues of over VND10.2 trillion ($443.4 million) and after-tax profits of more than VND420 billion, up 36 percent and 14 percent, respectively.

Vietnam National Seed Group JSC (Vinaseed) made revenues of over VND1.93 trillion and after-tax profits of more than VND225 billion, posting respective year-on-year rises of 18 percent and 16 percent.

Both net revenues and after-tax profits of Trung An Hi-tech Farming JSC increased 15 percent to VND3.12 trillion and over VND100 billion.

Vietnam exported over 6.2 million tons of rice totaling nearly $3.3 billion last year, according to the General Department of Vietnam Customs.

The average export price of Vietnamese rice rose 5.5 percent against 2020 to $526.8 per ton in 2021, according to the Ministry of Agriculture and Rural Development.

Loc Troi exported over 80,000 tons of rice worth over VND1 trillion, quadrupling in both volume and value against 2020. Vinaseed exported 60 tons of premium fragrant rice to the U.K. for the first time.

Domestic sales also increased last year, partly due to social distancing measures imposed to curb Covid-19. Hoa Sen Rice told VnExpress its sales surged 45 percent in 2021.

The Vietnam Food Association predicted Vietnam, which exported 505,700 tons of rice worth $246 million in January, would export over 6 million tons of rice this year. However, a sharp increase in prices of agricultural materials, especially fertilizers, will increase input costs and lowers farmer incomes.