Full-year profit for Vietnam Rubber Group's declines

According to Vietnam Rubber Group (VRG), during the complicated situation of the pandemic, the Group has taken drastic measures to protect employees' health, limit the impact on production and business.

However, many member units and employees are still affected by the pandemic. Up to now, the Group's member units have had 214 F0 cases, of which 63 have recovered, currently 158 are being treated and monitored.

The total number of F1 cases at the units is 1,030, 464 cases have finished the quarantine period and returned to work and 746 cases are under concentrated isolation or isolation at home according to the decision by health authorities.

The pandemic has significantly affected all major areas of VRG. In the field of rubber production, latex exploitation and processing in many member units had to be suspended for a long period of time in many areas and factories due to F0 cases. Smallholder rubber latex purchasing activities, rubber latex consumption and rubber logging activities also face many difficulties and obstacles due to social distancing in localities.

The rubber and wood processing industry are severely impacted by factories with high density of workers, some factories are not eligible for "3 on-site" or a breakout occurs even with "3-on-site" in place, ceasing production, most factories had to reduce output due to the implementation of social distancing and a lack of labor.

In industrial parks on rubber land, projects are delayed, foreign investors cannot visit Vietnam, so they cannot lease new land, investment attraction faces many difficulties. Those who are leasing land in industrial parks face difficulties due to closure or reduction eligibility for exemption, extension or postponement of land rent, affecting the revenue and profit of the Group's industrial parks.

In addition, VRG also faced many other difficulties such as high production costs due to pandemic prevention, significant contributions of the Group and its member units to the Covid-19 Central and local Vaccine Fund…

Faced with such situation, VRG expects the Group's consolidated revenue this year to reach VND 25,500 billion, equivalent to 95% of the plan, expected profit of only VND 4,320 billion, reaching 76% of the plan.

During the pandemic, VRG has written to the Committee for the Management of State Capital at Enterprises to consider adjusting the Group's 2021 plan. In addition, the Group also proposed many policies related to employees, taxes, business support mechanisms, pandemic prevention solutions associated with production and business activities.