Son La Sugar Joint Stock Company: Efforts to Overcome Difficulties

To attain these successes, Son La Sugar Joint Stock Company has accelerated production cooperation and strengthened sugarcane supply. The company is running one of the largest sugarcane areas in the country. In general, the company’s stable material zone meets its sugar production demand and ensures good incomes for growers. Every year, the company signs advanced investment contracts with farmers under which the company funds materials, fertilisers, varieties and soil softening and purchases all sugarcanes grown by farmers and agricultural companies.

 

In addition to advanced investment for materials and capital for sugar growers, the company also sends its technical staffs to fields to assist farmers to apply new techniques and ensure input quality.

 

The company always pays best prices for farmers in a bid to harmonise benefits among stakeholders. The firm buys sugarcane on the commercial cane sugar (CCS) method and drives trucks to fields to take sugarcane. If it enjoys lofty profits from rising sugar prices, it will share a part of its profit with farmers by increasing cane purchase prices or funding fertilisers.

 

With relentless effort of the entire staff, Son La Sugar Joint Stock Company ended its multi-year losses and made good profits. After two years going public, the company paid off its debts of VND110 billion three years ahead of schedule set by the Debts and Assets Trading Company (DATC) and enjoyed higher yearly profits. Specifically, its profits increased from VND6.925 billion in 2008 to VND7.792 billion in 2009, VND23.651 billion in 2010, VND25.5 billion in 2011 and VND49 billion in 2012. Its profit-making operations have also helped improve incomes for its 306 full-time workers and 5,320 cane growers. Its tax amount paid to the State coffers was VND10 - 20 billion a year. The average monthly income of an employee increased from VND2.7 million in 2007 to VND6.5 million in 2012. Dividend payout ratio rose from 8 percent 2007 to 25 percent a year in 2011 and 2012.

 

The company’s successes were partly attributed to the support of local authorities and the close instruction of DATC. Importantly, the company regularly launched emulation campaigns to encourage its employees to raise initiatives and innovations in production and business development.

 

With its efforts and achievements in business operations, the company has been awarded many titles and rewards like “Excellent Working Collective” Award by the Son La Provincial People's Committee and the Certificate of Merit by the Prime Minister in 2008. From 2007 to 2011, the company was named the Company of Culture.