CAN THO – Phung Hiep Sugar Factory, the largest sugar mill in the Mekong Delta region, has suspended production in the 2024-2025 season.
Tran Ngoc Hieu, chairman of the board of Can Tho Sugar JSC (Casuco), the owner of the sugar mill, has signed a resolution approving the plan to halt production at the factory and accepting a loss of VND20.3 trillion after seeking approval from its shareholders.
The shareholders also agreed to a plan to sell more than 29,400 tons of sugarcane, which had been contracted with farmers for the 2024-2025 season, to other buyers, and accept the additional costs for transportation and losses incurred in this process.
With the temporary shutdown of the Phung Hiep Sugar Factory for the 2024-2025 season, Casuco has now closed this mill for two consecutive seasons.
In the 2022-2023 season, the mill only processed about 14,500 tons of sugarcane, far lower than the initial plan of 80,000 tons, resulting in a loss of over VND21.3 billion.
Pham Quang Vinh, a member of Casuco’s board of directors, said that at the industry’s peak, the Mekong Delta region had around 10 sugar mills in operation. However, three remain today, all operating at a minimal capacity.
These mills are Tra Vinh Sugar Factory in Tra Vinh Province, Soc Trang Sugar Mill in Soc Trang Province, and Phung Hiep Sugar Factory in Hau Giang Province.
