April 15, 2025 | 21:54 GMT +7

  • Click to copy
Wednesday- 08:44, 27/12/2023

VRG promotes 'green direction' with revenue of approximately VND 25,000 billion in 2024

(VAN) Despite facing many major difficulties, VRG basically completed its key targets in 2023 and aims to ensure growth in 2024.
Harvesting latex at Ba Ria-Vung Tau Rubber Company. Photo: Thanh Son.

Harvesting latex at Ba Ria-Vung Tau Rubber Company. Photo: Thanh Son.

Complete key targets

In Ho Chi Minh City on December 26, the Vietnam Rubber Group (VRG) held a conference to summarize Party work, production and business activities in 2023 and deploy directions and tasks in 2024. At the conference, Mr. Le Thanh Hung, General Director of VRG, said the situation of production and business in 2023 continues to face many difficulties.

First of all, this year’s price of rubber latex plummeted. The average selling price decreased by VND 6.6 million/ton compared to the planned selling price and VND 5.8 million/ton compared to the average price in 2022. With over 520,000 tons of rubber consumed by the entire Group this year, the sharp drop in price as above clearly has a great impact on revenue and profits.

Besides, the sharp drop in our country's export of wood and wood products in 2023 has caused rubber wood to decline in both selling price and consumption demand. In addition, some member rubber companies have not yet returned land to localities to develop industrial park expansion projects (Minh Hung III and Bac Dong Phu Industrial Parks in Binh Phuoc, and Rach Bap Industrial Park in Binh Duong) due to problems with mechanisms and policies, leading to reduced revenue and profits.

In that context, with the unified leadership of Party committees at all levels and the close guidance of the Commission for the Management of State Capital at Enterprises (CMSC), the Group basically completed key targets despite many objective difficulties. VRG's production, business, and investment activities in 2023 achieved some positive results.

Regarding production targets, exploited rubber latex output is estimated to reach 445,000 tons, exceeding 4.7% of the yearly plan and increasing by 3.5% (equivalent to 15,400 tons) compared to 2022. 520,290 tons of rubber of all kinds were consumed, reaching 102.4% of the yearly plan, an increase of 3.8% (or 18,968 tons).

Regarding financial targets, total consolidated revenue is estimated at VND 24,485 billion, equal to 101.0% of the plan. Consolidated profit before tax is estimated at VND 4,015 billion, equal to 101.5% of the plan. As for the holding company-Group, revenue and profit before tax are estimated at VND 3,872 billion and VND 1,405 billion, respectively, reaching 102.1% and 100.7% compared to the plan. Budget submission is expected at 100.7–102.8% of the 2023 plan.

A VRG’s outstanding achievement in 2023 is that the Group's member units have maintained stable jobs for 83,125 workers with an average income of VND 8.24 million/person/month, equivalent to that in 2022.

There are even companies where employees’ average income increased significantly in 2023. According to Mr. Le Van Lam, General Director of Dong Nai-Kratie Rubber Joint Stock Company (Kratie province, Cambodia), the average income of the company's employees this year reached about USD 370–380/month, a significant increase compared to USD 340/month in 2022 (equivalent to an increase of VND 1.1 million/month).

Sustainable development achieved positive results

Despite facing many difficulties, in 2023, VRG and its member companies still promote sustainable development. By the end of 2023, VRG had 32 member companies that had developed a sustainable forest management plan, reaching 279,304 hectares. Among them, 18 companies were granted a Sustainable Forest Management Certificate according to VFCS/PEFC with about 118,337 hectares, and 38 factories (natural rubber processing, wood processing, and industrial rubber products) achieved PEFC-CoC (chain of custody).

The Group also assigned 24 companies to participate in the Sustainable Business Certification program organized by the Vietnam Chamber of Commerce and Industry (VCCI) in collaboration with the Vietnam Business Council for Sustainable Development (VBCSD). As a result, 18 companies of the Group have been ranked among the Top 100 Sustainable Enterprises in 2023, of which Phu Rieng Rubber Co., Ltd. has been listed in the Top 10.

Processing rubber latex at a VRG’s member company. Photo: Tran Phi.

Processing rubber latex at a VRG’s member company. Photo: Tran Phi.

Ensure the growth requirements of the agriculture sector

VRG's production and business activities in 2024 are forecast to still face many difficulties. The selling price of rubber latex remains low and difficult to predict. Wood and rubber wood products are forecast to continue to be impacted by the domestic real estate market and the economic recession in major countries, so demand and selling prices tend to continue to decrease with no positive sign in the short term.

The rubber industry is operating in difficulty and has not yet been able to overcome existing problems that have accumulated over many years. The industrial park and hydroelectric powder fields are operating smoothly, but there are still many problems. Solutions to increase other sources of revenue to compensate for production and business activities (revenue from divestment from outside the industry, returning land to localities for socio-economic development) are forecast to still have many difficulties due to problems with mechanisms and policies.

Faced with that situation, VRG will consider ensuring production and business efficiency as the Group's main task in 2024. At the same time, continue to develop the Group on the foundation of three pillars: economy, environment, and society; implement well the green growth and sustainable development programs.

To ensure production and business efficiency, VRG built a 2024 synchronous plan from member units on the basis of analyzing and assessing existing problems and limitations in 2023 and capacity to organize production; forecasting business and investment environments; and analyzing and evaluating risk factors when developing and implementing the plan.  

However, building VRG's 2024 plan still poses risks because it cannot accurately forecast objective and force majeure causes, including rubber latex selling prices, currency exchange rate risks in Laos and Cambodia, and difficulties in mechanisms and policies when returning land to localities and developing industrial parks and industrial clusters on rubber land.

Therefore, VRG temporarily assigned the 2024 volume plan so that the Group's member units have a basis to implement and guide the construction and approval of detailed plans for all units in fields and industries (rubber, wood processing, rubber industry, industrial parks, hydroelectric power, and other supporting fields).

Specifically, in terms of output and volume, it is targeted to exploit about 445,200 tons of rubber latex, purchase about 75,290 tons, and consume 520,490 tons. The average latex selling price will reach about VND 34.6 million/ton. 6,430 hectares of rubber wood will be harvested. The wood production output of all kinds (billet wood, laminated wood, refined wood, and MDF wood) will be about 1,247,012 m3, and the output of other industrial products (rubber gloves, conveyor belts, sports balls, mattresses, and pillows) will be 92.0–106.0% of the estimate for 2023. Industrial parks strive to newly lease 245 hectares.

Regarding the entire Group’s consolidated financial targets, revenue and other income sources will reach VND 24,999 billion (up 2.1% compared to 2023); profit before tax is VND 4,104 billion (up 2.2%); profit after tax is VND 3,437 billion (up 0.9%). As for the holding company, Group, revenue is targeted to be VND 3,988 billion (up 3%) and profit before tax at VND 1,454 billion (up 3.5%).

With agricultural products accounting for a large proportion of VRG's production and business activities, the Group's growth rate ensures the growth requirement of 2.5–3% as required by the Ministry of Agriculture and Rural Development in developing a plan for agricultural and rural development in 2024.

Author: Thanh Son

Translated by Huyen Vu Thu

Vietnam - South Africa cooperation: A model for nature and biodiversity conservation

Vietnam - South Africa cooperation: A model for nature and biodiversity conservation

(VAN) South Africa commits to working with Vietnam to conserve biodiversity, promote a just energy transition, manage marine areas, and develop sustainable aquaculture.

Vietnam Sustainable Maritime Economy Development Forum 2025

Vietnam Sustainable Maritime Economy Development Forum 2025

(VAN) Vietnam Agency of Sea and Islands has proposed that the MAE organize the Vietnam Sustainable Maritime Economy Development Forum in 2025.

Vietnam approves of administrative reform at all levels

Vietnam approves of administrative reform at all levels

(VAN) Deputy Prime Minister Nguyen Hoa Binh has just signed a decision approving the Project to organize administrative units at all levels and build a two-tier local government structure.

Restoring ecosystems and upgrading infrastructure for disaster resilience

Restoring ecosystems and upgrading infrastructure for disaster resilience

(VAN) This is an important goal that the UN-Habitat organization of the United Nations is implementing in Son La, aiming to respond to climate change and reduce disaster risks.

IOM supports Vietnam in developing safe migration models

IOM supports Vietnam in developing safe migration models

(VAN) In the context of increasingly complex climate change, the International Organization for Migration (IOM) is committed to supporting Vietnam in developing safe and sustainable migration models.

Trade surplus nears 4.4 billion USD: Agro-forestry-fishery products consolidate global market presence

Trade surplus nears 4.4 billion USD: Agro-forestry-fishery products consolidate global market presence

(VAN) In the second quarter, the whole sector plans to accelerate production and penetrate new, high-potential markets, including the Middle East, Africa, and Halal Islamic Countries.

Xi Jinping: China is ready to boost imports of Vietnamese agri products

Xi Jinping: China is ready to boost imports of Vietnamese agri products

(VAN) On April 14, Prime Minister Pham Minh Chinh met with General Secretary and President of China Xi Jinping, who is on a two-day state visit to Vietnam from April 14 to 15.

Read more