Binh Duong Rubber JSC: Effective Business, Reliable Partner in COVID-19 Epidemic Control with Localities

9:54:50 AM | 20/1/2022

In 2021, Binh Duong province is one of COVID-19 "hot spots" in the country. The prolonged social distancing seriously affected production and business activities of many businesses and Binh Duong Rubber Joint Stock Company was no exception. However, determined to overcome difficulties, the company still successfully protected the health, employment and income of its employees.

Binh Duong Rubber Joint Stock Company, formerly known as Cay Truong Farm, was established by the People's Committee of former Song Be Province in 1977. After several stages of development and name changes, in 2009, the company was renamed to Binh Duong One-member Limited Liability Company under the decision of Binh Duong Provincial People's Committee. In 2015, the company was converted into a joint stock company called Binh Duong Rubber Joint Stock Company.

Currently, Binh Duong Rubber is managing more than 1,500 ha of rubber, tended by four production teams. The company's rubber plantation is assessed to have high yield, with a yearly latex output of more than 7,500 tons, including 357 tons of SVR 10 latex and more than 5,200 tons of SVR3L latex.

Binh Duong Rubber owns a rubber latex processing facility with an annual capacity of 6,000 tons that supplies the market with natural rubber products such as high-quality SVR 10 and SVR 3L. Hence, Binh Duong rubber brand has created a reputation for domestic and foreign customers.

As the land fund for industrial and urban development is increasingly shrinking and Binh Duong province is advocating industrial development to the north, managing a large land area is an advantage for Binh Duong Rubber Joint Stock Company that not all businesses have. Therefore, after going public, the company's management decided to expand its business into real estate investment and business and industrial zone construction and development.

In 2017, the company embarked on a commercial worker housing and service project in 5D Residential Area in Lai Uyen commune, Bau Bang district. Well-made investment, right demand and proximity to Bau Bang Industrial Park should be well received by investors and residents, helping the company to achieve high business performance boosted by its selling and leasing.

The successful development of 5D Residential Area and the rubber business consolidation enabled the company to make a record profit of VND31 billion. After making a deduction for the accumulated loss of VND19 billion, the remaining profit after tax was more than VND9.7 billion. This was the first in many years that it made a profit and paid a dividend rate of 5% to shareholders. Since then, the company has always made profit, improved workers' lives, and guaranteed shareholders' interests.

Particularly in 2021, with the prolonged epidemic, the housing business and rubber processing was seriously affected. As for the home business segment, due to social distancing, transactions were almost frozen and the operating time was only six months in the year, nevertheless, the firm still generated stable jobs and incomes for employees. It achieved 60% of the targeted profit.

With its excellent business results, every year the company sides with the locality to provide millions of Vietnamese dong for social security policies a year. In 2021, due to the epidemic outbreak, enterprises faced numerous difficulties. Apart from solutions to protect employee health (no infections were detected in the company), Binh Duong Rubber Joint Stock Company has joined hands with local authorities and the community to prevent the epidemic. The total budget was VND 800 million.

By Vietnam Business Forum