Profits of enterprises exporting rice are different

VCN - The positive rice export results since the beginning of the year have brought profits for many exporters, but some companies have suffered losses or sharply reduced profits due to the burden of foreign trade, transportation and logistics costs.
Loc Troi's rice is on its way to Europe. Photo provided by enterprise
Loc Troi's rice is on its way to Europe. Photo provided by enterprise

Statistics from the General Department of Customs show that Vietnam's rice exports reached 4.08 million tons in the first seven months of 2022, equivalent to a value of approximately US$2 billion, up 17.3% in volume and 6% in value over the same period in 2021.

Thus, although rice exports are quite competitive, Vietnamese products are still increasingly popular in the world market.

According to the Vietnam Food Association, in the last week of July 2022, the price of Vietnam's 5% broken rice traded at US$413 per ton, US$15 per ton higher than Thai rice and US$70 per ton higher than Indian rice, US$45 per ton higher than Pakistani rice. For 25% broken rice, Vietnam's rice is at US$393 per ton, US$4 per ton higher than Thai rice of the same type, US$65 per ton higher than Indian rice and US$43 per ton higher than Pakistani rice. Thus, the export price of Vietnam's rice is at the highest level in the group of major rice exporting countries in the world.

Although the situation of rice exports is positive, according to rice exporters, transportation and logistics costs are still very high and the increase in oil prices due to the influence of the Russia-Ukraine conflict, so even though the export of rice reached a high level but the profit is not very positive.

The business results recorded in the financial statements of the second quarter of 2022 of some enterprises have partly reflected this. Typically, revenue in the second quarter of 2022 of An Giang Import-Export Joint Stock Company (AGM) increased by more than 800% over the same period last year, reaching VND1,297 billion. However, profit after tax recorded a loss of VND28 billion, while the same period last year had a profit of VND3 billion.

According to the explanation of AGM General Director Huynh Thanh Tung, the company had boosted export sales, signed new contracts and increased export supply, helping to increase revenue very high. But the sharp increase in selling and logistics costs, it affected the company's efficiency.

In the first six months of 2022, AGM had a net loss of VND24 billion, while in the same period last year, it recorded a profit of more than VND4 billion.

At Loc Troi Group Joint Stock Company, consolidated net revenue in the second quarter of 2022 also increased by 30%, reaching VND3,547 billion, but profit after tax was negative VND46 billion, even though the same period last year had a profit of VND47 billion. The management board of Loc Troi said that the increase in operating expenses and financial expenses was the cause of the company's loss in the period.

The loss in the second quarter of 2022 led to reducing Loc Troi's accumulated profit in the first six months of 2022 to only VND137 billion, down 41% compared to the same period last year.

However, loss or decrease in profit is not common in all enterprises. In enterprises that manage costs well, profits still have a high growth rate. For example, at Southern Food Corporation (VSF), after a long period of losses, the company had a profit after tax of VND30 billion in the second quarter of 2022, while in the same period last year the company suffered a loss of VND63 billion.

Explaining this, Mr. Tran Tan Duc, Deputy General Director of VSF said that in the same period in 2021, the company was seriously affected by the Covid-19 pandemic, so the situation of rice production and consumption faced many difficulties. This year, the company has drastically focused on good cost management, fulfilling the target of new export contracts, so it has brought in profits. Accumulated in the first six months of 2022, VSF's after-tax profit was nearly VND31 billion, much better than the loss of VND142 billion in the first half of 2021.

Trung An Hi-tech Agriculture Joint Stock Company also achieved a consolidated net profit of VND23.5 billion, up 38% despite a slight decrease in revenue of 3% in the second quarter of 2022. Accumulated in the first six months, Trung An had a consolidated profit of nearly VND51 billion, up 168%.

Similarly, at Vietnam Seeds Corporation (NSC), net revenue in the second quarter of 2022 only increased by nearly 7% compared to the second quarter of 2021, reaching VND567 billion, but profit after tax increased to 32%, reaching VND86 billion. Accumulated in the first six months, NSC's profit after tax was VND123 billion, up 24%.

By Nguyen Hien/ Binh Minh

Related News

Logistics service businesses transform digitally to reduce costs

Logistics service businesses transform digitally to reduce costs

VCN - 4.0 technology application has enabled businesses to lower logistics costs by an average of 23% compared to traditional methods and shorten the order processing time by an average of 35% thanks to automation.
Storm No. 3 destroys profits of many insurance companies

Storm No. 3 destroys profits of many insurance companies

VCN - Due to the impact of storm No. 3, the business results of the third quarter and the first 9 months of 2024 of the insurance sector have been significantly affected. This requires more efforts from businesses for the results of the whole year 2024.
Reducing logistics costs: A solution for competitiveness and attracting import-export goods

Reducing logistics costs: A solution for competitiveness and attracting import-export goods

VCN - With high costs, a lack of large-scale logistics centers, and fragmented infrastructure, the logistics industry still faces many challenges on its path to becoming a backbone of the economy.
The trend of international business expansion of enterprises

The trend of international business expansion of enterprises

VCN - Expanding export markets is the goal of most enterprises to increase revenue, profits as well as enhance the reputation and stature of the business brand.

Latest News

Sustainable fashion presents promising niche market for textile manufacturers

Sustainable fashion presents promising niche market for textile manufacturers

The combination of sustainability and culture will open up more opportunities for Vietnamese textile enterprises to strengthen their position in the global market and capture the promising Nordic fashion market.
VN

VN's car industry to diversify supply chain

While China remains a significant supplier, recent trade data highlights Việt Nam’s efforts to diversify supply to meet industry demands.
Exports of agro-forestry-aquatic products down nearly 5 per cent in January

Exports of agro-forestry-aquatic products down nearly 5 per cent in January

Việt Nam’s export value of agro-forestry-aquatic products was estimated at US$5.08 billion in January, marking a 4.9 per cent decline compared to the same period last year.
Thailand reviews anti-dumping tax on Vietnamese steel

Thailand reviews anti-dumping tax on Vietnamese steel

TRAV recommended that the Việt Nam Steel Association (VSA) notify relevant local manufacturers and exporters to answer the investigation questionnaire within the prescribed deadline.

More News

In the first 15 days of 2025, total import-export turnover reached more than US$34 billion

In the first 15 days of 2025, total import-export turnover reached more than US$34 billion

VCN - Total import-export turnover in the first half of January 2025 reached more than US$34 billion, the trade balance had a deficit of nearly US$2 billion.
Pangasius fetch record price in early 2025

Pangasius fetch record price in early 2025

Currently, larger pangasius weighing over 1.2kg, are selling at VNĐ32,440 (US$1.29) per kilogram, a record high not seen since 2022.
Việt Nam and India trade reached $15 billion in 2024

Việt Nam and India trade reached $15 billion in 2024

Trade relations between Việt Nam and India continue to flourish, with bilateral trade turnover reaching around US$15 billion in 2024.
Việt Nam

Việt Nam's port firms thrive in 2024

Strategic investments and expansions are expected to further enhance the sector’s performance.
Software exporter looks to new pace of growth

Software exporter looks to new pace of growth

FPT Software (F-Soft) Đà Nẵng plans to earn VNĐ3.6 trillion (US$144 million) in exports in 2025 after introducing a third campus at the FPT Complex and signing a strategic deal with the city.
Việt Nam

Việt Nam's exports to EU see impressive recovery in 2024

Việt Nam’s exports to the EU made an impressive recovery in 2024, reaching nearly US$51.7 billion, an increase of $8.08 billion compared to 2023.
Việt Nam–CPTPP trade turnover exceeds $100 billion

Việt Nam–CPTPP trade turnover exceeds $100 billion

The turnover accounts for 13.1 per cent of Việt Nam’s total import-export turnover last year.
E-commerce, a game changer for textile manufacturers

E-commerce, a game changer for textile manufacturers

According to a Việt Nam Textile and Apparel Association (VITAS) report, the proportion of textile businesses adopting e-commerce strategies has increased from 7-8 per cent in 2021, to over 20 per cent by the end of last year.
China remains the largest market for Việt Nam’s cassava and cassava products

China remains the largest market for Việt Nam’s cassava and cassava products

China accounted for 92.85 per cent of the total export volume and 91.77 per cent of the total export value, amounting to 2.43 million tonnes worth $1.06 billion.
Read More

Your care

Latest Most read
Sustainable fashion presents promising niche market for textile manufacturers

Sustainable fashion presents promising niche market for textile manufacturers

The combination of sustainability and culture will open up more opportunities for Vietnamese textile enterprises to strengthen their position in the global market and capture the promising Nordic fashion market.
VN

VN's car industry to diversify supply chain

While China remains a significant supplier, recent trade data highlights Việt Nam’s efforts to diversify supply to meet industry demands.
Exports of agro-forestry-aquatic products down nearly 5 per cent in January

Exports of agro-forestry-aquatic products down nearly 5 per cent in January

Việt Nam’s export value of agro-forestry-aquatic products was estimated at US$5.08 billion in January, marking a 4.9 per cent decline compared to the same period last year.
Thailand reviews anti-dumping tax on Vietnamese steel

Thailand reviews anti-dumping tax on Vietnamese steel

TRAV recommended that the Việt Nam Steel Association (VSA) notify relevant local manufacturers and exporters to answer the investigation questionnaire within the prescribed deadline.
In the first 15 days of 2025, total import-export turnover reached more than US$34 billion

In the first 15 days of 2025, total import-export turnover reached more than US$34 billion

VCN - Total import-export turnover in the first half of January 2025 reached more than US$34 billion, the trade balance had a deficit of nearly US$2 billion.
Mobile Version