Vietnam’s largest tobacco producer Vinataba earns record revenue in 2024

According to the audited consolidated financial report, Vinataba’s 2024 net revenue rose by nearly 18 percent compared to the previous year.

On average, the company earned more than VND78 billion ($3 million) in daily revenue.

Manufactured tobacco remained the primary revenue driver, contributing approximately 60 percent, equivalent to VND16.8 trillion ($643.7 million), up nearly 22 percent year on year.

Vinabata reported a gross profit of nearly VND5.2 trillion ($199 million), an increase of over 12 percent. 

The gross profit margin remained stable at around 18.2 percent.

Beyond its core business, Vinataba earned nearly VND332 billion ($12.7 million) from financial activities, edging down four percent.

Profits from joint ventures and affiliates contributed VND350 billion ($13.4 million), equivalent to that in the previous year.

Vinataba also recorded nearly VND307 billion ($11.8 million) in other income, largely from financial support by Philip Morris International, its joint venture partner for the Marlboro brand in Vietnam.

In 2010, Philip Morris International successfully negotiated and signed a joint venture agreement with Vinataba through Vinataba - Philip Morris Co. Ltd., in which Vinataba holds a 51-percent stake.

On the expense side, selling costs surged 22 percent in 2024 to some VND1.4 trillion ($52.6 million), while administrative expenses rose 11.5 percent to over VND2.6 trillion ($99.6 million), mainly due to increased labor costs.

After deducting all expenses and taxes, Vinataba reported a net profit of nearly VND1.52 trillion ($58.2 million), a slight decrease compared to VND1.526 trillion ($58.5 million) in the previous year.

Vinataba also reported on its investments in companies where it holds controlling stakes.

Vinataba currently fully owns two subsidiaries: Saigon Tobacco Company Limited and Thang Long Tobacco Company Limited.

Thang Long Tobacco led in revenue with VND8.7 trillion ($333.5 million) but reported a net profit of only VND200 billion ($7.7 million), significantly lower than Saigon Tobacco, which earned VND473 billion ($18.1 million) in net profits on VND8.028 trillion ($307.8 million) in revenue.

Meanwhile, Vinataba - Philip Morris posted revenue of VND968 billion ($37.1 million) and a net profit of VND29.5 billion ($1.1 million) in 2024.

Hai Ha - Tokobuki Company recorded nearly VND280 billion ($10.7 million) in revenue but only VND3.1 billion ($118,700) in net profits.

Under the revised Law on Special Consumption Tax recently passed by the National Assembly, starting in 2027, tobacco products such as cigarettes, cigars, and pipe tobacco will be subject to absolute taxation.

The absolute tax for cigarettes will begin at VND2,000 ($0.08) per pack in 2027 and gradually increase to VND10,000 ($0.4) per pack by 2031.