Dau Tieng Rubber Co., Ltd Enhances Land Business Performance and Utility

11:36:13 AM | 7/8/2019

Dau Tieng Rubber Company Limited is a member of Vietnam Rubber Industry Group Joint Stock Company (VRG). For many years, although the market has experienced a lot of changes and fierce competition, the company has always been a leading unit in the VRG family by business performance, employee care - both material and spiritual, work environment and tax obligation fulfilment.

The company currently manages nearly 29,000 ha of rubber and employs over 6,000 well-paid workers. Dau Tieng Rubber has become a leading rubber brand in both domestic and international markets.

The company built three processing plants powered by advanced equipment and technology to scale up the processing capacity from 4,000 tons in 1990 to 47,000 tons since 2007. The company's products are now consumed in nearly 40 countries and territories in five continents.

In recent years, despite falling selling prices and fierce competition in many aspects, the company's products are still trusted by customers. Given its well-established prestige and brand in the market, its average selling price is always higher than its peers. Particularly, thanks to its appropriate consumption strategy, the company has always achieved its annual business plans.

In order to expand operational scope and diversify business lines, the company contributed its funds to investment projects in Binh Duong, Lai Chau and Lao Cai provinces, Cambodia and Laos. The company’s core investment areas currently include rubber development, wood processing, industrial park infrastructure, residential areas and high-tech agricultural applications.

At present, given low rubber prices, to improve operational efficiency, the company has carried out many solutions to raise labor productivity by applying right regimes to ensure maximum individual performance, and reduce production costs by reducing the replacement rate on gardens and reducing material and fuel consumption in production.

Besides, the business strategy is adjusted to the market situation. Accordingly, the company considers exports as a key channel to product consumption; identifies key export markets and selects long-term traditional customers; determines the product structure to suit market and consumer needs; provide products of stable quality and packaging according to customer requirements. In particular, the company always keeps business trust and stands willing to share hardships with customers.

Mr. Le Thanh Hung, General Director of Dau Tieng Rubber Company Limited, said that the company is currently assigned by the State to manage a large land area, thus, increasing land use efficiency is also one of the key tasks.

“Currently, the company is converting some areas which are no longer suitable for planting rubber trees to develop high-tech agricultural fields, investing in industrial clusters and residential clusters in order to increase land-use efficiency and diversify products and services to reduce sole reliance on rubber,” he said.

Dau Tieng Rubber Company Limited is making efforts to bring the average yield from 1.70 tons per ha in 2017 to over 2 tons in 2021, which will be kept in the next years. Its rubber production output will reach over 40,000 tons in 2025. The company will continue to buy 10,000 tons to 15,000 tons a year from farmers and sell over 55,000 tons in 2025. The rubber profit margin growth is 17% a year in 2018-2025.

In addition, in 2018-2025, Dau Tieng Rubber Company Limited will focus on developing potential business sectors, particularly wood processing and industrial zone investment.

Nguyen Tuan