The company, which reported a 20.6 per cent rise in turnover to US$141.5 million for the first half, said sales improved in all products except for lysine, an amino acid used primarily by the feed industry.
The ingredient has seen significant downward price pressure for some time and Vedan has as a result switched some of its production capacity to MSG and glutamic acid.
Turnover of lysine was almost 12 per cent lower than the previous year at US$9.2 million, said Vedan.
MSG and glutamic acid, on the other hand, were the group's "major growth drivers", it said. MSG sales were up by 14.3 per cent to $96.3 million while glutamic reached US$16 million.
Vedan uses locally grown cassava and sugarcane to produce MSG, a flavouring agent popular in the group's biggest market, Japan, which accounts for more than half of its total sales.
Sales to China also increased during the period, growing 19 per cent to $20.2 million. The growth mainly came from the increase in sales of GA in the country as well as a new business, Shandong Vedan Snowflake, which started operation.
But the firm wants to increase its sales in this market and is currently building a value-added seasoning production line in Shanghai, scheduled to come on stream in the fourth quarter. It may also add a MSG production line in Shandong Vedan Snowflake early next year, it said.
Vedan is also increasing its sales of modified starch, with first half turnover from this product up 4.1 per cent to $7.3 million. The firm is expanding its starch plants in Vietnam to meet continued growth.
It wants to strengthen its brand and develop new modified starch food applications and different carbohydrate substitutes to create added value and lower production costs.
Vedan chairman Yang Tou Hsiung warned however that the second half will still be challenging because of high raw materials costs and the international sales price of lysine.
"Despite that, we will push forward…to develop new products and new markets so as to remain competitive and deliver better results for our shareholders."
