The price of sugar in the Mekong Delta provinces has dropped drastically to touch VND14,600 per kilogram, causing many sugar refineries to suffer losses although confectioneries have begun producing sweetmeats for the coming Tet Lunar New Year holidays.
According to Vietnam Sugar Association, the price of refined sugar was VND18,500-19,000 per kilo during the same period last year and there was a shortage of sugar, however, this year sugar prices have continually fallen.
Inventory in Phung Hiep and Vi Thanh Sugar Refineries in Hau Giang Province alone adds up to 20,000 tons currently. Other sugar refineries are also holding onto a large amount of sugar in their warehouses.
One of the reasons that sent sugar refineries into such despair was because of illicit sugar flooding local markets from Thailand at a very low price, with domestic prices unable to compete.