Industry News
Rubber group targets high profit by 2020

Vietnam Rubber Group (VRG) has set higher targets on both revenue and profit by 2020, although its farming area is to stay unchanged.

In its report on business plan for the 2016-2020 period approved by the Government on July 14, the State-owned group targets a profit of VND9 trillion (some US$400 million) for 2020, or 2.6 times higher than in 2017. The report also shows VRG expects to earn a total revenue of VND40 trillion in 2020, 2.2 times higher than this year’s projected revenue.

According to the report for 2014-2016 period that VRG submitted to the Ministry of Planning and Investment on July 4, the group targets a revenue of nearly VND18 trillion for 2017 and a pre-tax profit of VND3.5 trillion. In 2016, VRG fetched nearly VND17.4 trillion in revenue and some VND3.3 trillion in profit.

In the next five years, the group’s rubber cultivation area will be kept unchanged at 400,000 hectares including 285,000 hectares in Vietnam and 115,000 hectares overseas.

At the end of March, VRG general director Tran Ngoc Thuan said that the group would launch an initial public offering (IPO) on July 1 with 25% of its shares to be offered to the public and strategic partners. However, the date has passed but the expected IPO has yet to be launched.

In the coming time, the group will focus on rubber cultivation and processing, rubber wood processing, and investment in infrastructure and hi-tech agriculture.

According to the Ministry of Agriculture and Rural Development, Vietnam exported 462,000 tons of rubber worth US$867 million in the first half of 2017, up 5% in volume and 59% in value. In the first five months of the year, rubber was exported at nearly US$2,000, equivalent to VND44 million a ton, a year-on-year increase of 60%.

Source : Vietnamnet News
Jul 2017

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