Vietnam’s July sugar price remains the lowest among major regional producers
Vietnam’s average sugar price stood at about 16,800 dong per kg in July, around 40% below prices in the Philippines and Indonesia. Ample domestic supply, ASEAN imports, smuggled sugar and rising HFCS imports continued to weigh on the market.
Regional price gap remains wide
Vietnam recorded the lowest sugar price among major regional cane-producing countries in July, according to Dân trí, citing the Vietnam Sugarcane and Sugar Association’s monthly production report. The average domestic price, converted using the exchange rate applied by the association, was about 16,800 dong per kg.
Comparable sugar prices reached 27,527 dong per kg in the Philippines, 26,706 dong in Indonesia and 19,504 dong in China. Vietnam’s price was therefore about 61% of the Philippine level and 63% of the Indonesian level. The difference amounted to approximately 10,700 dong per kg against the Philippines and nearly 9,900 dong against Indonesia.
Abundant supply limits domestic recovery
The price discount persisted as Vietnam approached the end of its 2025/26 cane-crushing season with substantial supplies available. By the end of July, mills had processed 13.586 million tonnes of sugarcane and produced 1.3258 million tonnes of sugar of various types. Almost all factories had completed crushing, with only one mill in the Central Vietnam–Central Highlands area still operating because its season started later.
The association said market supply currently comes from domestically produced sugar, imports from ASEAN countries and an unspecified volume of smuggled sugar. Together, these sources have left the market oversupplied while demand remains weak. Sales of cane-based domestic sugar have nevertheless shown signs of improvement as controls on smuggled supplies have begun to take effect.
Prices consequently strengthened toward the end of July. In Ho Chi Minh City, white granulated sugar rose from 16,000–16,100 dong per kg at the beginning of the month to 16,500–17,000 dong on July 28. Refined sugar increased from 16,900–17,200 dong per kg to 17,400–17,800 dong over the same period.
The regional gap remains substantial despite that recovery. The association expects domestic prices to rise slightly in August and September but remain below those in other regional cane-growing countries, including Indonesia, the Philippines and China.
HFCS imports add pressure on refiners
Vietnamese sugar producers also face growing competition from high-fructose corn syrup, or HFCS. The country imported 22,215 tonnes of HFCS in July, bringing shipments since the start of the year to 131,416 tonnes, equivalent to 105% of the volume recorded in the corresponding period. Beverage manufacturers account for most of these imports, although they were previously among the largest buyers of refined sugar.
Low sugar prices may benefit consumers and industrial users, but they present a margin challenge for domestic mills because sugarcane input costs have not fallen by a corresponding amount. Producers must contend simultaneously with weak demand, competing legal and illegal supplies, and substitution by imported sweeteners. For processors and traders, the modest late-July increase signals some improvement, but the persistent discount to neighboring markets indicates that Vietnam’s supply surplus has yet to clear.
