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Vietnam Rubber’s pre-tax profit rose 51% for 2016

Jan 12. 2017
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By  VIET NAM NEWS
ASIA NEWS NETWORK
HA NOI
 

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VIETNAM Rubber Group (VRG) achieved growth in pre-tax profit of up to 51 per cent in 2016, at 2.36 trillion dong (Bt3.6 billion).

At a meeting to review the firm’s business in Ho Chin Minh City, on Tuesday. Addressing the event, Standing Deputy Prime Minister Truong Haa Binh urged VRG to promote the equitisation of the parent firm and its subsidiaries and continue to withdraw capital from non-core businesses. It must also restructure shareholders of the group’s major companies, he said.

Along with further trade promotion and seeking new markets, the group needs to cut production costs so that it can reduce prices and increase its competitiveness.

 towards promoting the industry’s sustainable development in the future, he stressed.The group should improve the way it processes enhance processing of industrial products from rubber and rubber wood to reduce the export of raw materials and increase export value, Binh said. Medium-density fibreboard factories should increase production to take advantage of lower raw material costs and thus increase market share.

promote production following the reduction in the price of material to increase market share.VRG general director Tran Ngoc Thuan said that, in 2016, the agricultural sector faced great difficulties due to pressures including the impact of climate change. The rubber industry was hit by high supply in the market, lower prices for natural rubber and fluctuating oil prices.

the agriculture in general faced the most difficulty due to the impact of climate change. Meanwhile, the rubber industry, in particular, suffered significantly from high rubber supply, the price reduction of natural rubber and fluctuation of global oil prices.

However, VRG has outlined orientations and measures to tackle these problems, Thua said.To counter these problems, Thua said the company last year began focusing on restructuring and moving to greater reliance on technology to improve product quality.

In 2016, VRG focused on restructuring the sector, applying further advanced technologies in production to improve the quality of products.He said VRG’s total revenue grew 14.4 per cent against the set plan, above the target, at 5.4 trillion dong. The company contributed 15 trillion dong to the state budget, up 39.9 per cent year on year.

The company has targeted earning an estimated profit of 4.18 trillion dong in 2017, up 47 per cent from 2016. 

 

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