Despite facing numerous difficulties and challenges, especially in 2021 due to enormous impact of the COVID-19 pandemic, Ba Ria Rubber Joint Stock Company (BARUCO) managed to fulfill its business tasks, take good care of employees, preserve capital sources and enjoy a profitable business.
BARUCO’s efforts are highly appreciated by Mr. Huynh Van Bao, Member of the Board of Directors, representative of Vietnam Rubber Industry Group. Currently, the company is very optimistic about its business plan and growth momentums.
BARUCO was formerly Ba Ria Rubber Company, established on June 11, 1994. On January 1, 2010, the company was transformed into a one-member limited liability company. In March 2016, it debuted its initial public offering (IPO) at the Ho Chi Minh Stock Exchange. On April 22, 2016, the first General Meeting of Shareholders was held and Ba Ria Rubber Joint Stock Company officially went into operation on May 1, 2016 with a State controlling interest of 97.47%. “During 28 years of operation, BARUCO always emphasizes its determination to complete all business plans at a highest level, create resources for sustained development, fulfill tax payment targets; improve living standards for its employees and carry out the company development strategy in 2020-2025. We gradually affirm the brand by prestige and quality,” said Mr. Nguyen Minh Doan, Secretary of the Party Committee, Chairman of the Board of Directors of BARUCO.
Most proud of all, BARUCO was presented a lot of valuable and noble awards over the past years, particularly the First, Second and Third-class Labor Orders and Third-class Victory Order from the State. Two farms were named Labor Hero and one farm was named Hero of the People's Armed Forces. Many collectives and individuals were awarded Labor Orders, Certificates of Appreciation from the Prime Minister and many excellent movement flags from central and local authorities. Furthermore, the company's products won many brand awards like ISO Gold Cup, Quality Gold Cup, Green Brand Gold Cup for environmentally friendly products; and Prestigious Exporter Ward from 2004 to present.
In 2020-2021, BARUCO carried out a sustainable forest management plan and certified sustainable forest management according to the national forest certification system recognized by the international agency PEFC. BARUCO is also among Top 100 sustainable companies (recognized by CSI Program). Currently, its rubber products are consumed and exported to major markets such as Japan, Germany, Singapore, Australia and China, and especially highly appreciated by big manufacturers like Michelin, Goodyear and Yokohama.
When the COVID-19 epidemic was gradually controlled, BARUCO began to restore normal operations and continued its appropriate production plans, safely prevented epidemic, and mobilized employees to work more quickly. “Currently, the company's revenue still comes from rubber planting, tending, tapping and processing, with the main revenue still coming from rubber trading. Therefore, we still have input resources for production for our partners. To ensure the best product quality and maintain the brand, BARUCO also actively builds processes to strictly control input quality from farm to factory. High investment efficiency for new technology and production lines and higher product quality are competitive factors for the company's products in the present and in the future,” he said.
Sustainable production and business
The global rubber supply will be short in the coming years and the natural rubber industry already ended prolonged excess supply, Doan noted. Not only that, given easing restrictions on COVID-19 pandemic, such as border reopening in some countries and economic restoration, rubber demand is expected to significantly rebound in 2022. However, the natural rubber industry is also under certain pressure. The shortage of semiconductor chips can affect the global auto industry and therefore affects the demand for rubber. Container shortages, high freights and slow customs clearance will weaken rubber demand. Moreover, the biggest current concern of the company is labor shortage for rubber latex tapping due to rapid development of local industries and services which are vying for labor. In this regard, BARUCO hopes the government will create more favorable conditions for the company to seize opportunities and provide supports for it to remove existing "bottlenecks" in the way to utilize advantages of the rubber industry.
“The rubber demand is typically very high in the last months of the year and the price has tended to increase as compared to previous years. So, the company is also making efforts to complete the set plan. At the same time, the company continues to balance input supply sources for sustained manufacturing and business and search for new customers and markets. As Vietnam transitions to flexible adaptation to COVID-19, to grasp opportunities, I also desperately hope that the province will give priority to us to invest or lead a joint venture in land-repurposing projects. BARUCO is very optimistic about its business plan and growth momentum, and confidently advances with disruptive, rapid and sustainable socioeconomic development,” Doan said.
Source: Vietnam Business Forum