Rubber sector enjoys profit growth of 51% in 2016
Wednesday, 2017-01-11 11:00:40
NDO/VNA – The Vietnam Rubber Group (VRG) achieved a pre-tax profit growth of up to 51% to VND2.36 trillion (US$103.8 million) in 2016, heard a conference reviewing 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 the VRG to accelerate the equitisation of its subsidiaries and continue withdrawing capital from non-core business lines.
Along with further enhancing trade promotion and seeking 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 made from rubber and rubber wood 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 significant 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% against the set plan, reaching over VND15.4 trillion (US$677.6 million). It contributed VND1.15 trillion (US$50.6 million) to the State budget, up 39.9% year-on-year.
The group has set a targeted estimated profit of VND4.18 trillion (US$183.9 million) in 2017, up 47% from 2016.