|Việt Nam Rubber Industry Group plans to invest in rubber tyre and tube production to check a fall in revenues. — VNS Photo|
HCM CITY — Despite the difficulties caused by the COVID-19 pandemic and natural disasters that directly affected it, the Việt Nam Rubber Group achieved its revenue and profit targets for 2020.
It reported after-tax profit of VNĐ5 trillion on sales of VNĐ25.477 trillion (US$1billion).
But with COVID-19 still a threat, it expects 2021 to be a difficult year.
It has advised its subsidiaries to not stockpile to wait for prices to rise or sell too soon if prices fall.
They should work closely together with respect to processing to control quality and make their products consistent.
It would focus on restructuring and step up investment in the rubber sector, and M&As would help close the rubber tyre and tube products value chain, it said.
Currently it has five main lines of interest: growing rubber trees and processing latex, processing rubber wood, making industrial products from rubber, operating industrial parks amid rubber plantations, and high-tech agriculture.
In the natural rubber segment, GVR manages more than 400,000ha of land under rubber trees, but this business has been on a downward trend in recent years due to low rubber prices.
The COVID-19 pandemic has further hurt demand for rubber, pushing production even lower.
Expanding tyre and tube production could help revive revenues.
It entered this segment in 2017 through a partnership with the Southern Rubber Industry Joint Stock Company (Casumina) to produce the VRG brand of tyres. – VNS