Given that rubber prices have slumped sharply and local industrial, service and trade development is evolving rapidly, Binh Duong Rubber Joint Stock Company has sensitively adjusted business operations and expanded investment into potential fields to create a foundation for stable business development, and harmonious interests with shareholders and employees.
Binh Duong Rubber Joint Stock Company, formerly known as Truong Tree Farm, was established by the Song Be Provincial People’s Committee in 1977. After changing its name many times, the company was renamed to Binh Duong Rubber One-member Limited Liability Company in 2009 under the decision of the Binh Duong Provincial People’s Committee. The company has operated as a joint stock company since 2015, called Binh Duong Rubber Joint Stock Company.
Currently, Binh Duong Rubber Joint Stock Company is managing and tapping more than 1,500 ha of rubber, run by four production teams. The company’s rubber plantations are highly productive, with an annual average latex output of more than 7,500 tons, 357 tons of SVR 10 latex and more than 5,200 tons of SVR3L latex.
Binh Duong Rubber Joint Stock Company owns a rubber latex processing factory with an annual capacity of 6,000 tons, enabling it to provide the market with a wide range of natural rubber products such as premium SVR 10 and SVR 3L. Binh Duong Rubber is a well-reputed brand among domestic and foreign customers.
However, in the past years, low latex prices have greatly affected the company’s business performance and its employees’ livelihoods. Faced with that situation, to promote its creativity, potential and advantages, following the province’s development orientation, the leadership of Binh Duong Rubber Joint Stock Company decided to expand into more business lines, such as real estate investment and business, construction and industrial zone development.
However, in the past years, low latex prices have greatly affected the company’s business performance and its employees’ livelihoods. Faced with that situation, to promote its creativity, potential and advantages, following the province’s development orientation, the leadership of Binh Duong Rubber Joint Stock Company decided to expand business lines into real estate investment and trading, construction and industrial zone development.
In real estate, despite being a newcomer, Binh Duong Rubber Joint Stock Company has quickly made its name in a commercial worker service project in 5D Residential Area, Lai Uyen commune, Bau Bang district. Launched in 2017, the project brought a high economic value from sale and lease. As a result, from 2017, the company recorded a breakthrough in revenue and profit. Its profit soared to more than VND31 billion in the year. After offsetting an accumulated loss of VND19 billion, the profit after tax was VND9.7 billion. This was also the first time in many years that the company made a profit and paid a 5% dividend to shareholders. In 2018, its net profit was more than VND19.5 billion. In 2019, the value was VND18.7 billion.
Due to low rubber prices, most of the profit comes from real estate business.
Effective business helps guarantee shareholder rights and employees’ incomes. In 2019, the company paid a dividend rate of 7%. Regarding the workforce, Binh Duong Rubber Joint Stock Company currently has about 450 employees, each of whom is paid an average monthly income of VND8.5 million. The company always pays attention to workers’ spiritual life, creates favorable conditions for Party and Union activities, and supports professional improvement, employee loyalty and career promotion. In addition, thanks to flourishing business results, the firm spent a lot of money on local social security activities.
Possessing a large land bank in the new urban and industrial development planning area of Binh Duong province, and standing side by side with Becmex Group (an experienced developer of real estate and industrial zones), the Board of Directors and the Executive Board of Binh Duong Rubber Joint Stock Company are sensitive to great potential and development opportunities of the company.
Source: Vietnam Business Forum