The durian business has proven to be a highly profitable investment for Dak Lak Rubber Joint Stock Company, or Dakruco, outperforming other crops like rubber and cashews.

The company recently announced its business plan for 2025, expecting to harvest 640 metric tons of durians next year, with an average yield of approximately 62 kilograms per tree.

These durians are cultivated on about 30 hectares of farmland managed by a subsidiary in Laos, Daklaoruco.

According to Dakruco, the projected cost of goods sold (COGS) for durians in 2025 is VND30,596 (US$1.3) per kilogram, while the selling price could exceed VND50 million ($2,127) per ton.

This is estimated to generate over VND32 billion ($1.3 million) in revenue, with total costs amounting to only about VND19.6 billion ($834,042).

Laos remains the largest overseas investment market for this Vietnamese enterprise.

As reported by the Ministry of Planning and Investment of Laos, Vietnamese businesses have approximately 417 active projects in Laos, with a total registered investment capital exceeding $4.9 billion, including around $680 million in agricultural ventures.

Dakruco's durian farm, planted with the Dona variety, started harvesting in 2024, yielding an estimated 300 metric tons.

Although durian is the newest product, it has quickly become a key contributor to its profitability.

The Dona durian, developed from the Thai Monthong variety, is renowned for producing high-quality fruit with an appealing appearance, making it a favorite among consumers.

In the third quarter of 2024, durian accounted for roughly 12.4 percent of net revenue but contributed 20 percent of gross profit.

During this period, durian sales brought in nearly VND17.7 billion ($753,191) in revenue, with a COGS of only VND5.5 billion ($234,042), yielding a profit margin of approximately 70 percent.

By comparison, rubber latex sales generated VND125 billion ($5.3 million) in revenue during the same period, with a COGS of nearly VND78.8 billion ($3.35 million), resulting in a profit margin of around 37 percent. 

However, the banana cultivation incurred a loss of VND43 million ($1,829) in the quarter.

Despite generating VND472.6 million ($19,692) in revenue, the segment faced a COGS that was 9 percent higher than its earnings.

As a result, over 10,000 banana trees were uprooted to expand the durian orchards.

According to Vietnam's General Department of Customs, the country’s durian exports reached approximately $3.1 billion in the first 11 months of 2024, a 44 percent increase from the previous year.

This year, durians are expected to account for nearly half of Vietnam's total fruit and vegetable export value.

For 2025, the enterprise anticipates a total revenue of VND613 billion ($25.5 million), primarily from rubber production, and a net profit of around VND110 billion ($4.58 million). 

The company plans to harvest over 8,200 hectares of rubber plantations, yielding an average of 1.65 metric tons per hectare.

The management estimates that the production cost of finished rubber will be $1,350 per ton, while the average selling price for rubber latex is projected to be $1,695 per metric ton.

The company recently issued a resolution to sell over 18.1 million DRI shares through order-matching and negotiated transactions on the market for unlisted public enterprises, or UPCoM, at a starting price of VND14,300 ($0.6) per share.

The sale is expected to close between December 19, 2024 and January 17, 2025.

If successful, Dakruco’s ownership will drop from 60 percent to approximately 36 percent.

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