Binh Duong’s land fund for agricultural development has been shrunk, due to the local industrial growth and orientation for economic structure shift. Hence, Vietnam Rubber Group (VRG) will focus on in-depth development for the province’s rubber industry.
Advantages
Thanks to rubber cultivation area expanded plus rubber latex price on rise, the rubber industry of the whole country in general and of Binh Duong in particular has over time reaped robust growth. Binh Duong has always gained the highest productivity in the whole industry, due to favorable soil and weather conditions along with rubber cultivation areas expanded. This was also affimed by Tran Ngoc Thuan, CEO of VRG in a recent meeting with Binh Duong.
Rubber latex under harvest VRG’s two affiliated companies with outstanding achievements
in production and business in Binh Duong are Dau Tieng Rubber Corporation and
Phuoc Rubber Joint Stock Company (JSC). Phuoc Hoa Rubber JSC last year reached
more than VND2.58trillion in total revenue and VND823bln in post-tax profit, up
27% and 64% compared to 2010, respectively.
In Q1 2012, Phuoc Hoa Rubber JSC also achieved VND226bln in post-tax profit or 44% of this year’s plan. The second half of the year is a peak period for rubber latex harvest with latex output accounting for 60% or 70% of the entire year’s total latex output. Hence, the JSC is likely to exceed its plan this year.
Whilst, in June, Dau Tieng Rubber Corporation exploited 3,199.15 tons or 9.69% of this year’s plan, bringing its total latex output in the first half of this year to 9,619,42 tons or 29.15% of this year’s plan. Le Minh Chau, CEO of Dau Tieng Rubber Corporation said that the corporation in the first seven months of this year fulfilled 40% of this year’s plan with VND1.4trillion in revenue and VND800bln in profit. Workers herein enjoyed the average salary of VND5.5 per capita per month.
Since early this year, Dau Tieng Rubber Corporation has exploited 14,093 tons of rubber latex, getting 42.7% of this year’s plan and increasing by 1.5% compared to the same period last year. The corporation expects to have 1,634.85 hectares of rubber under cultivation this year…
In-depth development
Under VRG’s 2011-2015 business plan, Binh Duong’s rubber industry will be mainly developed in latex processing, woodwork processing and rubber product manufacture.
VRG’s in-depth development for Binh Duong’s rubber industry is a right step as this land cannot expand newly-cultivated areas. Moreover, Binh Duong is a locality with remarkable industrial growth in the Southern Key Economic Zone.
Possibly speaking, VRG’s recent moves have shown the above thing. Noticeably, VRG has affiliated with Khai Hoan JSC in Binh Duong. The company has also inaugurated its second plant manufacturing medical gloves for the first phase in Ben Cat district’s Lai Hung commune. As planned, all 16 production lines of the plant will be put into operation by the end of the year, bringing the total capacity of the two plants under VRG Khai Hoan JSC to 3.2 bln of various gloves a year.
VRG Khai Hoan JSC is expected to manufacture 1.4bln of various gloves in 2012, helping it secure VND800bln in revenue and VND31.6bln in profit. The JSC’s capacity will be also raised to 3 bln of glove products by 2013 and 4bln of glove products by 2012…
Reported by T.Dong-Translated by K.T
