Binh Thuan Rubber: Pride of Vietnam’s Rubber Industry

5:33:15 PM | 29/7/2014

Binh Thuan Rubber Co.,Ltd (Binh Thuan Rubber), which is formerly known as the Rubber Economic Technology Centre of Duc Linh district, was officially put into operation on August 6 1984. Its main business areas are focused on planting, caring and exploiting natural rubber and producing and exporting rubber-made products. For nearly 30 years of establishment and development, Binh Thuan Rubber has marked many milestones and become a pioneer in the rubber industry of Vietnam.
In recent years, thanks to the direction and management of the provincial Party, People's Committee and Vietnam Rubber Group as well as the efforts of Binh Thuan Rubber staff, the company has contributed to creating high revenue and increasing the capital, complying with paying tax for the state budget that gets over the same period of the last year. This helps stabilise and improve the lives of the employees.
Binh Thuan Rubber has been developing from the initial area of 30 hectares to 4,500 hectares of rubber, 3,900 hectares of which has been put into operation. The company now has four specialised plantations caring and harvesting latex and one latex processing plant with two rubber processing factories. In order to optimise the capacity, shorten the depreciation period of the processing plant and create more jobs, the management board has actively strengthened the purchasing of additional latex from households. In 2013, the total output of the Binh Thuan Rubber reached 11,614 tonnes; the procurement of the latex reached 5,026 tonnes and the exploitation of the latex were 6,588 tonnes. 80 percent of the company's capacity is sold to the domestic enterprises and the remaining 20 percent is exported to some foreign markets such as Japan, USA, Malaysia , India, Russia, Belarus, Taiwan, and China.
In 2013, Binh Thuan Rubber signed a contract with the Institute of Eastern Economic Development to start the project of “transferring the management science advances to Binh Thuan Rubber Company in the integration period and vision to 2030”. In terms of the processing sector, the determination of the quality of products is a vital issue of the company so the leaders of Binh Thuan Rubber have established a centre of quality management to evaluate the quality from raw material to finished products. And the 95 percent of Binh Thuan Rubber’s products meet the quality requirements of foreign manufacturers, each export shipment is monitored and certified for quality control by VILAS. Its products are now diversified to meet the requirements of the markets. Some standard products launched in Vietnamese market and in many countries over the world are RSS1, RSS3, RSS4, SVR L, SVR 3L, SVR CV50, SVR CV60, SVR10, and SVR20. In the future, the company will establish an import and export division for the purpose of enhancing the procurement of raw rubber from households to expand the scale of production while actively seeking markets to expand the direct foreign export markets.
Sharing about the secret of success, General Director Nguyen Van Thanh confided that the Binh Thuan Rubber has built up own branding in concrete steps; there is a clear quality policy that is announced to customers at the same time and delivered to the customer in time despite the market fluctuations. Therefore, since it was operated, Binh Thuan Rubber has always highlighted its strength to both domestic and overseas customers. To increase production capacity to meet market demands effectively, in 2014, Binh Thuan Rubber will invest more to build another processing plant with a capacity of 10,000 tonnes per year, bringing the total processing capacity of the company up to 17,500 tonnes per year. In addition, it will also seek more land to expand the scope of existing rubber plantations.
Talking about the difficulties that Binh Thuan Rubber has been facing during operation, General Director Thanh said that to maintain and develop the production and business activities of the Binh Thuan Rubber, the company is looking for the fund raising strategies. Therefore, the company is looking for credit supports from the government, particularly for businesses like Binh Thuan Rubber who are operating in the agricultural sector.
Truong Thanh