Elevating Donaruco Brand Value through Sustainable Green Production

In alignment with the prevailing trends of green growth and sustainable development, the member companies of the Vietnam Rubber Industry Group (VRG), notably Dong Nai Rubber Corporation (Donaruco), have proactively embraced green production processes that intertwine economic development with environmental preservation. This initiative not only positions these companies as integral contributors to the global supply chain but also underscores their commitment to corporate responsibility towards the community and society at large.

Donaruco extends its operations to establish state-of-the-art, green-certified manufacturing facilities that produce environmentally conscious products meeting rigorous standards in both domestic and international markets, thus actively fostering sustainable development

Maximizing impact through sustainable practices

In alignment with the National Strategy on Green Growth for the 2011-2020 period, extending to 2050 and approved by the Prime Minister, VRG has undertaken significant strides in sustainable rubber forest management. Pioneering this initiative, VRG implemented the VFCS/PEFC-FM Sustainable Forest Management Certificate and the international PEFC-CoC Product Chain of Custody Certificate. This strategic move serves as a solid foundation for VRG member units, including Donaruco, to expand their scale, increase forest areas, and establish green-certified factories producing eco-friendly products that meet stringent requirements in both domestic and international markets, thereby contributing to sustainable development.

Donaruco, specifically, has completed its Sustainable Forest Management Plan for the 2021-2045 period, encompassing a substantial rubber area of 32,946 hectares. Over the two years (2020-2021), the corporation achieved VFCS/PEFC-FM Forest Certification for four farms (An Loc, Binh Loc, Hang Gon, and Tuc Trung), totaling 11,035 hectares. Additionally, it obtained PEFC-CoC Chain of Custody Certification for all three factories, boasting an annual capacity exceeding 40,000 tons of natural rubber. Despite market challenges and fluctuations in rubber prices, Donaruco secured long-term contracts with major international markets such as the EU, the United States, Japan, and China, while actively seeking domestic partnerships to bolster local consumption.

In 2022, amid economic uncertainties, Donaruco demonstrated exceptional resilience, achieving impressive business results. Notably, all 10 farms reported a yield surpassing two tons per hectare, marking Donaruco's entrance into VRG's 2-ton club in a sustainable direction. Labor productivity soared to 12 tons per person, representing a 0.9-ton increase compared to 2021, positioning it among the highest in the rubber industry. Donaruco exploited 29,250 tons of natural rubber, with exports constituting 37% of the 35,520 tons sold, generating total revenue of VND1,853 billion. The corporation contributed over VND581 billion to the State Budget and the VRG Group. In the first nine months of 2023 alone, Donaruco achieved 86.4% of its full-year exploitation plan, selling 86.71% of the yearly target, generating a total revenue of VND1,236.35 billion and contributing VND135.81 billion to the State Budget.

The pursuit of sustainable forest management certificates presented Donaruco with numerous challenges. However, recognizing the intrinsic link between these efforts and long-term sustainable development goals, the corporation steadfastly perseveres, ensuring adherence to correct processes. Emphasizing uniform and stable farming quality, environmental hygiene, adequate labor protection, and latex quality, Donaruco directs its affiliated units to uphold these standards rigorously. The corporation also prioritizes the effective application of mechanization, automation, digitalization, and other technological advances across various stages, from planting to environmental protection, thereby enhancing productivity, purchasing output, processing, and product value. This multifaceted approach aims to reduce costs and fortify adaptability to volatile rubber prices.

Furthermore, Donaruco actively promotes a circular economy within its production and processing activities. This entails prioritizing the use of green energy, such as biomass, and reusing wastewater, byproducts, and waste to curtail production costs, safeguard the environment, and respond effectively to climate change. Concurrently, the firm endeavors to create new markets, job opportunities, and improve the health, livelihoods, and income of its employees, underscoring its commitment to holistic and sustainable business practices.

Advancing sustainable development across economic, social, and environmental dimensions

In addition to obtaining the VFCS/PEFC-FM and PEFC-CoC certificates, Donaruco is steadfastly committed to implementing robust management systems, including ISO 9001, ISO 14001, ISO 45001, ISO/IEC 17025, and others. Ensuring consistently high-quality products that align with both national and international standards, the corporation proudly carries the esteemed certification of the "Vietnam Rubber" Brand.

Through the effective application of comprehensive management systems, Donaruco has garnered numerous prestigious quality awards, underscoring its unwavering commitment to excellence. Accolades include the National Silver Quality Award, Vietnam Golden Rice Award, Vietnam Golden Star Award, recognition among the Top 500 Largest Enterprises and Top 1,000 Largest Corporate Taxpayers in Vietnam, Prestigious Exporter Award, National Value Award, ASEAN Community Development Award, International Economic Integration Award, and the Award for the Development of Agriculture, Farmers, and Rural Areas. Notably, in 2021, Donaruco secured a position in the Top 10 of the 100 Most Sustainable Businesses and Companies Respecting Human and Children's Rights, as designated by the Vietnam Chamber of Commerce and Industry (VCCI).

General Director Do Minh Tuan attributed the trust and preference for Donaruco's products by major corporations to the diligent application of quality management systems, particularly the effective response to the Program for the Endorsement of Forest Certification (PEFC) Chain of Custody certified by the SGS certification agency

Donaruco engages in collaborative efforts with local communities to champion policies that benefit households and extend support to those in need, particularly during Tet holiday

Emphasizing a holistic approach to sustainable development, Donaruco acknowledged that responsible business practices extend beyond mere profit pursuits. Prioritizing green environmental concerns, ensuring employment stability, income sustainability, and livelihood improvement for employees, and fulfilling societal obligations are imperative components of sustainable development. With this understanding, Donaruco actively fulfilled its corporate responsibility to society, collaborating with localities to foster the well-being of local workers and contributing to the establishment of vibrant, green, clean, and civilized rural areas. From 2021 to the present, the corporation has invested over VND12.3 billion in social security initiatives, contributing to the development of essential infrastructure such as power grids, roads, schools, and medical facilities in localities. Donaruco has also collaborated with localities to support policy households and those in need during holidays and Tet. Engaging with social and political organizations, the corporation consistently participates in initiatives like the Make the World Cleaner Program, contributing to local environmental cleanliness and actively responding to World Environment Day.

The successful implementation of the green product chain of custody has not only enhanced the value of the Donaruco brand but also aligns seamlessly with the global emphasis on green growth. Positioned at the forefront of sustainable development, social security, and environmental responsibility, Donaruco anticipates an increasingly receptive consumer market in the future, particularly in export markets. Seizing this opportunity, the corporation commits to maintaining a sustainable productivity of over 2.2 tons per hectare annually, striving to produce more than 32,000 tons of latex each year, and steadfastly pursuing its sustainable development goals anchored in the three pillars of Economy, Society, and Environment.

In a resolute commitment to environmentally friendly production, Donaruco leverages eco-friendly technologies, employs microbiological approaches in wastewater and exhaust gas treatment to minimize chemical usage, implements a closed-cycle system for reusing recycled wastewater within factories, and adheres to sustainable forest management practices, thereby enhancing carbon reserves and biodiversity for forest development.

Simultaneously, the corporation upholds stringent compliance with community consultation regulations for investment projects, invests significantly in social security initiatives within project areas, and adopts progressive labor policies. Standing in solidarity with its workforce, Donaruco actively addresses challenges to pave the way for a brighter future and an improved quality of life for all stakeholders.

By Thanh Tung, Vietnam Business Forum