Dong Nai Rubber Corp: Advancing Green, Transparent, and Sustainable Value Chain

With more than half a century of development, Dong Nai Rubber Corporation under Vietnam Rubber Group (VRG) is steadily restructuring and shifting from a raw material business to a value-added enterprise. It is moving toward a green, transparent, and sustainable model aligned with international standards. On the occasion of the 35th anniversary of diplomatic relations between Vietnam and the European Union, our reporter interviewed Do Minh Tuan, General Director of Dong Nai Rubber Corporation, to discuss strategic development in the new era.

Dong Nai Rubber Corporation aims to lead Vietnam’s rubber industry in the green transition with an ESG- and EUDR-compliant supply chain

Elevating the rubber value chain

In an environment where the rubber industry faces frequent price and demand fluctuations, what strategic direction are you prioritizing to ensure sustainable growth?

The global rubber sector is undergoing major restructuring, with increasing requirements for traceability, green development, and higher value-added products. In this context, we have defined our development strategy around four pillars:

First, we are diversifying products and sales channels and flexibly adjusting our product mix to respond to market changes. We are focusing on high-performance technical rubber while increasing the share of long-term contracts and using formula-based pricing to reduce risk and stabilize revenue.

Second, we are enhancing product value through deep processing. We are investing in plant upgrades, automating processes, and integrating full-chain traceability systems. This enables us to shift from selling raw materials to selling value, providing products that meet international technical standards.

Third, we are expanding and consolidating key markets. The corporation is focusing on high-value regions such as the EU, the U.S., Japan, and South Korea, where ESG standards and the European Union Deforestation Regulation (EUDR) are prioritized.

Fourth, we are accelerating digital transformation and improving supply-chain transparency with coordinated solutions, including IoT and AI for output forecasting and management of harvesting, transport, and processing, alongside ERP and SCM systems to optimize the production and commerce chain. At the same time, we are applying Forest Stewardship Council (FSC) and Program for the Endorsement of Forest Certification (PEFC) certifications, strictly controlling water, soil, and chemicals, and reducing emissions, aiming for green growth alongside social and environmental responsibility.

As a core enterprise of Vietnam Rubber Group and of Dong Nai province, could you share the role and contributions of Dong Nai Rubber Corporation within Vietnam’s rubber value chain?

With more than half a century of development, Dong Nai Rubber Corporation has long been a leading force in the industry and a principal production unit of Dong Nai province. Each year, we provide more than 45,000 tons of internationally standardized semi-processed products, including SVR L, SVR 3L, CV, Latex, Low Protein Latex, Free TMTD, and Pale Crepe. These products serve a wide range of sectors, from industrial and consumer applications to medical and high-tech materials.

In science and technology, we collaborate with domestic and international institutes and universities, the RIKEN Institute of Japan, Japanese Chamber of Commerce and Industry in Vietnam, and European Chamber of Commerce in Vietnam (EuroCham) to improve processes and implement full automation and digitalization from plantation to factory.

In sustainable development, the corporation applies VFCS and PEFC to more than 11,000 ha of rubber plantations, meeting the traceability and transparency requirements of demanding markets such as Europe.

Our operations also contribute significantly to local communities. We create thousands of jobs, develop more than 11,500 worker housing units, and build hundreds of kilometers of roads, power systems, schools, and rural infrastructure. As a result, workers enjoy stable living conditions, social welfare is ensured, and order and safety in production areas are well maintained.

The 50th anniversary of Dong Nai Rubber Corporation

Green transition and sustainable development

Sustainable development is a core value of the corporation. Could you elaborate on the specific solutions?

We view sustainable development as the foundation of all activities, structured around three pillars: economic, social, and environmental.

On the environmental side, Dong Nai Rubber Corporation is implementing PEFC/FM sustainable forest management across nearly all plantation areas, ensuring full traceability to each plot and preventing deforestation and ecosystem disruption. Our factories are equipped with wastewater treatment systems that meet Column A of QCVN 40:2011/BTNMT. At the Xuan Lap Factory, which has an annual capacity of 34,000 tons, we have replaced fossil fuels with biomass, recycled organic sludge into biological fertilizer, and are moving toward full reuse of treated wastewater.

On the social side, we provide stable employment for more than 4,000 workers, with an average monthly income above VND15 million, one of the highest levels within VRG. Workers are provided with housing, full benefits, and training in ESG, safety, and professional skills, helping to foster a culture of “green enterprise, green workforce.”

Looking ahead, what are your expectations for Vietnam’s rubber industry and for Dong Nai Rubber Corporation?

Vietnam’s rubber industry has a major opportunity to reposition itself from a raw material supplier to a green and circular economic sector. For Dong Nai Rubber Corporation, research and development will be a strategic pillar. In the coming period, we will focus on developing specialized technical rubber products for automobiles, healthcare, and aviation, as well as alternative materials to petroleum-based products, including bio rubber and green silicone rubber.

Comprehensive digital transformation is a long-term priority. We are building an integrated chain connecting plantations, factories, warehouses, and customers using Big Data, IoT, and AI to forecast output, monitor quality, and reduce CO2 emissions, advancing toward the Net Zero 2050 target.

By 2030, Dong Nai Rubber Corporation aims to become the leading green-transition enterprise in Vietnam’s rubber industry, with a supply chain that meets ESG and EUDR standards, and products that feature full traceability, digital technologies, and end-to-end automation.

The EU is a promising market but has strict standards. How has the corporation prepared to comply with the EUDR and expand exports to the EU?

The EUDR requires all products imported into the EU to demonstrate that they are not linked to deforestation after December 31, 2020. To meet this requirement, Dong Nai Rubber Corporation has digitized all plantation areas, mapped the geographic coordinates of every plot, built a centralized database, and applied QR and Blockchain technologies for traceability. Our DNRC Traceability system allows full tracking of each product’s journey, ensuring transparency for customers and EU regulators. At the same time, the corporation is deploying integrated ERP and SCM systems, using IoT and AI for yield forecasting, and operating real-time quality dashboards. The corporation sold 2,000 tons of EUDR-compliant products to Europe during 2024 and 2025.

We also conduct product life cycle assessments, apply ISO 50001 energy management, expand PEFC-certified forest areas, and invest in emission reduction projects such as rooftop solar power, high-efficiency boilers, heat recovery systems, and replacing FO and DO fuels with biomass. In 2024 alone, we exported more than 1,000 tons of EUDR-compliant rubber to Europe. Our goal for 2025 to 2027 is to reduce emission intensity per ton by 10 to 15% at EU-serving factories, achieve PEFC certification for 50% of production, and ensure that all shipments comply with the EUDR with independent verification.

These efforts not only support expansion in the EU market but also strengthen the position of the Dong Nai Rubber brand as a symbol of quality, responsibility, and sustainable development for Vietnam’s rubber industry.

Thank you very much!

Source: Vietnam Business Forum