Quang Tri Rubber One Member Co., Ltd: Success from Innovative Governance and Renovated Technology

After nearly 28 years of construction and development, the collective staff of Quang Tri Rubber One Member Co., Ltd has united and strived to achieve outstanding results, significantly contributing to local socioeconomic development. In the past 10 years, the company has maintained a high growth rate and good performance thanks to its dynamic management.

 

One of the company’s remarkable successes is its innovative business management. It is the first rubber company in Vietnam to study and apply the long-term contract to rubber growers. This model strengthens the bond of growers to the company and encourages them to take better care of rubber trees to boost productivity and economic efficiency. The Vietnam National Rubber Group decided to apply this successful model to the entire industry.

 

To increase competitiveness, the company invested over VND20 billion (US$1 million) to renovate technologies in its latex processing plants. From a single product of ribbed smoked sheet (RSS), the company has turned out a wide variety of products like SVR 3L, SVR 5, SVR 10 and SVR 20. Its products are sold not only in Vietnam but also exported to many countries, with an annual turnover of US$8 - 10 million.

 

Since 2005, implementing the business diversification policy of the Vietnam National Rubber Group, the company has actively invested in domestic and international projects. To date, the firm has invested VND223.3 billion in eight joint stock companies operating in rubber plantation (in Laos and Northwest Vietnam), fertiliser production, MDF wood processing, tourism and hotels. At present, it is planting 5,000 ha of rubber trees in the Laotian province of Salavan.

 

By the end of 2010, the average productivity of its rubber tree plantations reached 1,632 kilos per ha. The firm earned revenues of VND363.52 billion and pre-tax profit of VND118.4 billion, paid VND34.7 billion to the State Budget, and ensured average monthly income of VND7.2 million for employees. The company’s achievements have actually contributed to the economic development and social security of Quang Tri province.