Quang Ngai Sugar bets on biofuel, accelerates $65 mln ethanol project

Quang Ngai Sugar JSC (QNS) is accelerating development of a VND1.7 trillion ($64.57 million) ethanol plant as it positions for Vietnam’s planned transition to E10 biofuel from 2028.

Betting on large-scale ethanol production

At its 2026 AGM, QNS approved a business plan highlighting investment in ethanol as a strategic move to capture growing demand for biofuels.

The An Khe Ethanol Plant, with a designed capacity of 200,000 liters per day, is expected to produce 30% food-grade alcohol and 70% fuel ethanol for blending into gasoline.

The project has been approved by the board of directors, and the company is completing legal procedures to secure in-principle approval from local authorities.

Earlier this year, QNS signed an MoU with authorities in Gia Lai province for the project and has launched an international tender to select contractors.

Vietnam’s gasoline consumption currently stands at around 25 million tons per year. The country is using E5 fuel and plans to shift to E10, with E10 expected to become mandatory from January 1, 2028, replacing A95 gasoline - creating significant demand for fuel ethanol.

QNS said the investment would allow it to utilize molasses, a by-product of sugar production, while improving operational flexibility by enabling shifts between sugar and ethanol output depending on market conditions.

The plant is expected to be completed and begin operations in early 2028.

Expanding sugar and energy value chain

Alongside the ethanol project, QNS is expanding its sugar and energy operations in Gia Lai.

The company plans to increase capacity at the An Khe Sugar Plant to 25,000 tons of cane per day, with an investment of more than VND1.17 trillion ($44.4 million). It will also expand the An Khe biomass power plant to 135 MW, with total investment of nearly VND847 billion (VND32.17 million).

In the consumer segment, Vinasoy soy milk remains a long-term growth driver, with the company focusing on plant-based nutrition products and expanding its green and sustainable consumer ecosystem.

Cautious outlook amid market challenges

QNS said the global economy continues to face structural challenges, while domestic recovery remains slow, with weak consumption, volatile input costs, and intensifying competition.

Against this backdrop, the company has set a cautious 2026 target, with revenue projected at around VND10.5 trillion ($398.82 million), down 5%, and net profit expected to exceed VND1.5 trillion (VND56.97 million), down about 21% year-on-year.

Leadership reshuffle for new term

QNS has also announced senior management changes for the 2026-2030 term.

Dang Phu Quy has been appointed chairman, while Vo Thanh Dang will continue as CEO and serve as vice chairman.

Other key executives remain largely unchanged, including Nguyen The Binh as deputy CEO in charge of finance, and Tran Quang Kien overseeing technical operations.

Founded as a state-owned enterprise and equitized in 2005, QNS has been listed on the unlisted public companies market (UPCoM) since 2016. As of end-2025, it had charter capital of more than VND3.68 trillion ($139.62 million).

The company operates 16 subsidiaries and affiliated units, including brands such as Vinasoy, An Khe Sugar, Dung Quat Beer, Biscafun confectionery, and Thach Bich mineral water. Among them, An Khe Sugar Factory is the largest sugar factory in Vietnam, while Vinasoy holds the leading position in the soy milk market.

On the UPCom, QNS shares closed Thursday at VND48,000 ($1.82) apiece.