Visorutex - Firm Steps Forward

Visorutex, established in 1991, is currently operating on rubber plantations the Government of Vietnam handed over to the Government of Russia to use in accordance with the Intergovernmental Protocol signed in 1995. At present, Visorutex is exploiting 1,000 ha of rubber in Binh Duong province. Visorutex’s products are standard Vietnamese rubber (SVR) delivered to customers by wooden pallets, pallets in plastic bags and bulk containers. SVR products pass quality checks at the company and pass cross-check and re-inspection at the Vietnam Rubber Research Institute. Material rubbers meet Vietnamese TCVN 3769 - 2004 standards. The company’s output includes SVR 3L, SVR 5, SVR 10, SVR 20, SVR CV50, and SVR CV60 rubbers. The joint venture company exports nearly 4,000 tonnes of products a year, mainly high-quality SVR 3L rubber.

 

As a joint venture with the Governments of Russia and Ukraine, Visorutex holds an advantage in accessing former Soviet Union markets. The company exports a significant volume of its production to these markets, but they are not traditional markets for natural rubber SVR3L. Hence, the venture constantly looks for new customers in potential markets like the EU, India, Malaysia and China. Mr ROSTISLAV SHIMANOVSKIY, General Director of Visorutex , said: “In recent years, global financial crisis and economic recession shrink VISORUTEX’s export markets. This is a daunting challenge for the joint venture. For the time being, we are trying to keep existing markets and finding new ones to increase exports, profits and incomes for our employees.”

 

In the past two or three years, the surge in natural rubber prices on global markets brings in huge profits for the joint venture company. In 2010, the joint venture made a profit before tax of VND47 billion, paid VND8.7 billion to the State Budget. In the first six months of 2011, its pre-tax profit was more than VND18 billion. Mr SHIMANOVSKIY R.N attributed the success to significant support of the Vietnamese Government and the Vietnam Rubber Group. At present, the Vietnamese Prime Minister has announced to sign an additional content to Protocol 1995 to extend the operating life of the joint venture.

 

Defining its staff as a decisive factor in business operations; thus, Visorutex takes special care of its employees who are paid higher each year. Currently, Visorutex has more than 400 employees, including more than 300 latex collectors and more than 30 people in charge of processing. The joint venture applies all statutory rights and interests of employees like wages, bonuses and insurance. The company’s incomes are higher than social average. In 2010, the average monthly income of a worker in the joint venture was VND8.5 million and many are paid more than VND10 billion.

Visorutex attaches much importance to improving working skills and knowledge for its employees. It thus regularly organises training courses for its staff.

 

Remarking on the new development strategy, Mr SHIMANOVSKIY R.N said: After the two Governments signed the Additional Protocol, the joint venture will replant existing aging rubber plantations. This is a fundamental basis for the joint venture to operate in a long term in Vietnam.