Since its inception, all members of Vietnam Rubber Finance Company Limited (RFC) have spared no effort to promote internal strengths and make success in all aspects. As a reward for their tireless efforts, RFC has made great progress and confirmed its role as a vital financial instrument of the Vietnam Rubber Industry Group (VRG).
RFC, formerly called Finance Rubber Company, was established on October 6, 1998 with the primary task of serving VRG-invested projects for the period till 2020 approved by Prime Minister. The company focused on rubber acreage expansion projects; latex and rubber wood processing projects; rubber manufactured product projects, electricity, cement, steel projects; infrastructure and real estate construction and trading projects; and other projects invested by VRG. After nearly 13 years of construction and development, RFC has continuously grown in all aspects and become one of fastest-growing and most trusted credit institutions in the domestic financial market. Hence, its contributions for the Vietnamese rubber company are getting greater.
Over time, RFC’s scale is getting larger. The workforce increases in both number and quality as they are better trained, dynamic, creative and enthusiastic in the work. The company’s operating network has been gradually strengthened and expanded, with two head offices, one branch in Hanoi and seven transaction offices in major provinces and cities in the country. RFC’s registered capital rose from start-up VND30 billion (US$1.5 million) to VND1,588 billion (US$75 million) at present, making it one of largest companies affiliated to VRG by authorized share capital.
Functioning as a credit arranger for VRG, RFC proactively cooperates with domestic and international credit and financial institutions; builds and deploys capital arrangement plans to timely fund projects invested by VRG and its member companies. The company has helped the Vietnamese rubber industry maintain high growth. In addition, many innovative products of RFC have become its strengths like capital and credit arrangement consulting, loan entrustment, and forex business. Especially, to diversify financial and investment products and services for customers and improve capital efficiency, RFC opened securities transaction counters at all RFC branches and transaction offices where customers are provided with modern professional machines, stable high-speed transmission lines and professional consultancy.
Speaking of future development, Mr Phan Minh Ngoc Anh, CEO of RFC, said: To be an effective financial instrument or VRG, RFC will adhere to VRG’s strategic objectives, carry out corporate restructuring, and set up a risk management division to anticipate, discover and limit risks linked to all its operation. Mentioning the necessity of establishing the risk management division, Mr Ngoc explained: “Following the guidance of the Government concerning divestments in noncore industries, VRG has transferred all 40 percent of stake, an equivalent to 1.6 million shares, at Rubber Securities Joint Stock Company (RUBSE) to RFC. Following the transfer, RFC’s holdings at RUBSE increased from 11 percent to 51 percent. For the time being, most securities companies are taking losses; thus, RFC has to strengthen risk management to ensure that all operations are safe, effective and appropriate.”
RFC is planning to reshuffle its operations and organisation to become a corporation which will have many member companies involved in securities, financial and insurance business.
Song Thanh
Vietnamese
