Vietnam Rubber Firms Report High Profit in 2008

Vietnamese rubber companies gained very high profit in 2008 despite many difficulties like decreased export price and automobile industry's crisis.

 

At the year-end meeting January 15, Le Quang Thung, general director of the Vietnam Rubber Group (VRG) said they sold 326,000 tons of rubber, including 160,000 tons for export, fulfilling 100 per cent of yearly plan.

 

The VRG netted VND3.914 trillion profit on gross revenue of VND12.9 trillion. Among its members, Dau Tieng Rubber Co. reported a profit of VND730 billion; Dong Nai Rubber Co., VND605 billion; Binh Long, VND324 billion; Phu Rieng, VND306 billion; and Phuoc Hoa, VND297 billion.

 

The VRG set target at VND3.2 trillion in pre-tax profit, including VND2.6 trillion from rubber sales.

 

The group said it will have to reduce its rubber prices to only VND20 million (US$1,200-US$1,300) a ton in 2009, from VND39.7 million a ton on average in 2008.

 

But it said as the price drop to VND17 million (US$1,000) a ton, local rubber growers can gain profit of VND4 million-VND5 million. (Vietnam Agriculture)