Large room for exporting rubber materials

GVR: Total processing capacity can be increased to 200,000 tons/year

The leader of Vietnam Rubber Industry Group (stock code GVR - HoSE) said that the rubber latex purchasing work of the whole group in recent years has achieved certain results, contributing significantly to the overall production and business results and demonstrating the role and position of economic and social significance in GVR's localities.

GVR currently has 37 member organizations specializing in purchasing rubber latex. Of which, the Southeast region has 13 companies; the Central Highlands region has 10 companies; the Central Coast region has 5 companies; and the Northern Mountainous region has 2 companies. In the foreign market, GVR has 4 companies in Cambodia and 2 companies in Laos organizing the purchase of rubber latex.

According to assessments, smallholder rubber grown by small-scale farmers plays an important role in the natural rubber supply chain, accounting for about 60% of the total amount of rubber latex exploited across the country's rubber growing areas.

Therefore, well-organized rubber purchasing from farmers will create a stable supply source for GVR, helping to maximize the capacity of member units, especially in the context that GVR is gradually converting rubber plantations into industrial park land.

Mr. Tran Thanh Phung - Deputy General Director of GVR commented that if the purchasing activities are well organized and maintained, GVR's annual rubber latex purchasing output can reach 100,000 tons. The processing capacity of the factories in the group, if fully utilized, can still process up to 200,000 tons/year.

The Association of Natural Rubber Producing Countries (ANRPC) predicts that the global natural rubber supply shortage this year could reach 1.24 million tonnes.

Previously, GVR and the rubber industry in general benefited from positive information from the domestic rubber market. Specifically, it is estimated that in the first 6 months of 2024, rubber exports reached about 722,000 tons, worth 1.09 billion USD, down 5.8% in volume, but up 4.5% in value compared to the same period in 2023. Vietnam's rubber exports have remained stable thanks to high rubber prices, along with continuously stable consumption.

According to the Vietnam Rubber Association (VRA), Vietnam currently has a rubber latex output scale of 1.3 million tons per year from 910,000 hectares of rubber plantation area. However, only 70-75% of these are mature rubber trees ready for exploitation. Every year, more than 300,000 tons of rubber are used in processing production, leaving a large amount of rubber raw materials for export.

This is opening up a large space for GVR's rubber raw material exports, especially in the context of a global supply shortage that is likely to continue in the 2024-2025 period.

GVR's rubber selling price is expected to remain high in the second half of this year.

GVR leaders said that the average selling price of processed rubber latex in the first half of this year reached VND38.4 million/ton, VND6 million/ton higher than the same period in 2023, which is a positive signal for the last months of the year. With current developments, GVR's rubber selling price is expected to continue to remain high in the second half of this year.

At the 2024 extraordinary shareholders' meeting, GVR set a consolidated business production plan for 2024 with revenue and other income reaching VND 24,999 billion; pre-tax profit of VND 4,104 billion; after-tax profit of VND 3,437 billion.

Regarding the 2024 production and business plan of the Parent Company - Group, specifically: Revenue and other income of VND 3,988 billion; pre-tax profit of VND 1,454 billion; after-tax profit of VND 1,454 billion. This year, the Parent Company - Group plans to invest and develop VND 1,146 billion.

Regarding the 2024 profit distribution plan of the Parent Company - The Group will allocate VND 1,200 billion to pay dividends (3%/charter capital) and VND 254 billion to set up funds according to regulations.

It is known that in the first 5 months of this year, the total rubber output consumed by the Group reached 150,000 tons, reaching 29% of the yearly plan. GVR earned about 1,108 billion VND in pre-tax profit in the first 5 months of this year, up 32% over the same period in 2023, and completed 32.2% of the yearly plan.

At the 2024 extraordinary shareholders' meeting, GVR set a consolidated business production plan for 2024 with revenue and other income reaching VND 24,999 billion; pre-tax profit of VND 4,104 billion; after-tax profit of VND 3,437 billion.

To complete the target for 2024 and the following years, VRG will strengthen technical management and exploitation to ensure that the 2024 plan is achieved and exceeded; closely monitor the implementation of the production plan to promptly have appropriate solutions; at the same time, strengthen the purchase of rubber latex from farmers to increase revenue and promote the capacity of processing factories.

VRG will continue to monitor market developments to manage floor prices appropriately and promptly to bring about efficiency and manage the Group's entire inventory at an appropriate level; promote marketing, trade promotion, and expand the market for rubber latex and the Group's products.

Enterprises proactively review the operations of wood companies to find solutions to remove difficulties and obstacles, ensuring stable and developing production and business activities in the wood sector in the coming time. Next is to ensure the Group's ability to supply rubber and rubber wood materials to the rubber industry, domestic wood processing industry and export.

Source: https://danviet.vn/tap-doan-cong-nghiep-cao-su-viet-nam-du-dia-lon-cho-xuat-khau-nguyen-lieu-cao-su-20240717213453773.htm