Illustrative image (Source: VNA)
HCM City (VNA) – The Vietnam Rubber Group (VRG) achieved a pre-tax profit growth of up to 51 percent to over 2.36 trillion VND (103.8 million USD) in 2016, heard a conference to review the firm’s production and business in Ho Chi Minh City on January 10.

Addressing the event, Standing Deputy Prime Minister Truong Hoa Binh urged VRG to accelerate the equitisation in its subsidiaries, and continue to withdraw capital from non-core business lines.

Along with further enhancing trade promotion and seek new markets, the sector needs to devise measures to save production costs to cut prices, towards promoting the industry’s sustainable development in the coming time,  he stressed.

He also suggested intensifying the processing of industrial products from rubber, and rubber wood, in order to reduce the export of raw materials, thus improving the sector’s value.

According to VRG General Director Tran Ngoc Thuan, in 2016, the rubber industry had suffered remarkable impacts from high rubber supply, the declining price of natural rubber and fluctuating oil prices in the world.

However, VRG has outlined orientations and measures to tackle these problems, Thuan said.

In 2016, VRG focused on restructuring the sector, promoting the application of advanced technologies and mechanization in production to improve the quality of products.

VRG’s total revenue grew 14.4 percent against the set plan, reaching over 15.4 trillion VND (677.6 million USD). It contributed 1.15 trillion VND (50.6 million USD) to the State budget, up 39.9 percent year-on-year.

The company has set to earn an estimated profit of 4.18 trillion VND (183.9 million USD) in 2017, up 47 percent from 2016.-VNA