Based in a sunny mountainous area where soil is not actually good for rubber tree yield, Mang Yang Rubber Company has upheld the solidarity of all the staff and addressed difficulties to successfully complete production and business targets in the past 36 years.
Mang Yang Rubber Company was established in 1984 by the General Department of Rubber (present-day Vietnam Rubber Industry Group) with the aim of reclaiming and reviving land heavily damaged by war.
According to a report released at the 35th founding anniversary in early 2019, after 35 years of tireless effort, the company successfully completed its business targets and plans assigned by the Vietnam Rubber Industry Group. Accordingly, from 1984 to 1994, it planted 3,278 ha of rubber. In 2001, it had over 5,700 ha of rubber in Dak Doa district.
From 2001-2018, after Chu Se II Rubber Company was merged into Mang Yang Rubber Company, its rubber area increased to 7,728 ha. The firm also witnessed remarkable business development in this period, with the best-ever business performance, high latex price, and latex output of more than 55,969 tons. Its processed latex output reached 59,717 tons and latex sales amounted at 61,054 tons, fulfilling 100% of the plan assigned by the group. The company fetched total revenue of VND3,035.763 billion, paid VND223.657 billion of tax to the State Budget, and paid VND229.346 billion of social insurance, health insurance and unemployment insurance for employees.
With its business performance, Mang Yang Rubber Company planted new rubber trees in Sa Thay district, Kon Tum province and in Cambodia. As of December 31, 2018, the firm invested VND1,013.508 billion in Mang Yang-Nattanakiri Rubber Joint Stock Company and Sa Thay Rubber Joint Stock Company. Mang Yang Rubber Company is managing over 21,000 ha of rubber area in Vietnam and foreign countries.
Mang Yang Rubber Company invested to complete building a processing line with a yearly capacity of 4,500 tons of crumb latex, 3,000 tons of rubber smoked sheet (RSS) and 3,000 tons of SVR 10-20 latex. It also has a standard wastewater treatment system. Its products are of high quality and popularity in the international market.
Opportunity for investment cooperation
Mang Yang Rubber Company’s business achievements are of enormous economic, political and social significance in poor Mang Yang and Dak Doa districts. Not only doing business, creating well-paid jobs for local workers, in which ethnic minorities account for a high share, the company also enthusiastically joins political, security and defense duties.
Historical milestones in the past 36 years are the foundation for the company to stand firm in the context of integration and withstand challenges. In recent years, prolonged rubber price slump, coupled with low soil fertility and crop productivity, weakened its business performance.
Mr. Truong Minh Tien, General Director of Mang Yang Rubber Company, said, the decrease in rubber price caused the investment rate to decline, but the company is trying to apply science and technology to intensive farming and product diversification, adopt effective ISO 9001: 2015 quality management system and ISO 14001: 2015 environmental management system, and the Villas product testing quality management system.
Currently, the company is studying RSS product investment based on Thai technology to raise product quality and create competitive advantages in the export market.
According to policies of Gia Lai province and Vietnam Rubber Industry Group and its development strategy, Mang Yang Rubber Company will convert low-yield rubber areas for other purposes that generate higher value.
General Director Truong Minh Tien said, Mang Yang Rubber Company expects to reserve an appropriate land fund of 500 - 1,000 ha to convert to hi-tech agriculture. It will join hands with other partners to plant short-term crops such as sweet potato, garlic and galangal. It will also use a part of land to plant hardwood trees, intercropped with short-term crops to bring the highest possible profit per unit area. Furthermore, it will transform some places planned by the province for industrial development to build industrial zones to draw potential, capable investors to the locality.
Quoc Hung (Vietnam Business Forum)