Aligning Business with Social Responsibility

9:56:09 AM | 1/20/2022

This statement was made by Mr. Nguyen Quoc Viet, General Director of Dau Tieng Rubber Co., Ltd, just after the company was awarded the Corporate Sustainability Certificate - CSI 100. Set up 46 years ago, the company is not only a leading rubber producer in Vietnam but also an important factor in local socioeconomic development.

Congratulations to Dau Tieng Rubber Company for achieving the Corporate Sustainability Certificate 2021 - CSI100. To garner this certification, the company must meet many strict criteria, mustn’t it?

An important foundation to achieve CSI100 certification is business development coupled with social responsibility and environmental protection as guided by the Organizing Board.

Regarding business criteria, by implementing its key tasks in 2015 - 2020, Dau Tieng Rubber Co., Ltd made an output of 165,388 tons, exceeding the target by 5,718 tons, fulfilling 103.58% of the plan. The company processed 244,365 tons, or 105.69% of the plan. Its total revenue was VND12,117 billion (US$520 million), of which revenue in foreign currencies accounted for US$273.57 million; its total profit was VND3,069.61 billion, equal to 108.40% of the plan. The firm paid VND1,166.34 billion to the State Budget, equal to 128.95% of the plan.

Regarding corporate culture and social responsibility, we always regard employees as the most valuable asset; build a professional, dynamic and creative working environment; create all conditions for them to earn high income; and care about benefit, wage and health policies for them. The company always defines production and business development associated with responsibility to the social community and accompanies local authorities to build new countryside and boost socioeconomic development in a sustainable way. Besides, environmental protection is the top concern of the company.

Environmental protection is a substantial challenge for businesses. How has Dau Tieng Rubber Co., Ltd invested to meet criteria set by the CSI Organizing Committee?

To protect the environment, the use of plant protection substances must adhere to State regulations to not affect human health, surrounding living environment and local community when the company grows and tends trees. To treat plant protection drug packages, the company periodically collects and hires professional processors for collection and treatment. Simultaneously, the company already built a wastewater treatment system which strictly follows VFCS/PEFC sustainable forest management standards and the ISO 14001 environmental management system. Dau Tieng Rubber Co., Ltd regularly reminds and inspects environmental hygiene in farms and intercropping areas to make sure that waste is cleaned up.

At the factory, environmental protection is always a top concern of the company to comply with the law, ISO 14001:2015 standards and all other environmental standards. Dau Tieng Rubber Co., Ltd focuses on investing and applying advanced scientific and technical applications to environmental works, effectively and economically uses natural resources, collects and treats all waste generated to meet environmental standards. The total expenditure for environmental work in 2021 was VND8 billion.

In 2021, companies faced many difficulties due to COVID-19 epidemic impacts. So, what solutions did Dau Tieng Rubber Co., Ltd take to maintain safe and effective production and business activities?

The fourth outbreak of COVID-19 epidemic has greatly affected the company's production and business activities. Many employees were laid off. The adoption of the “three on the spot” production scheme seriously harmed their psychology, life and health. Rising costs for epidemic prevention and control resulted in higher product prices. Output shrank due to social distancing. The epidemic also affected processing and consumption and increased transportation costs.

To maintain its production and business and ensure epidemic prevention, Dau Tieng Rubber Co., Ltd must promptly apply epidemic prevention regulations and government-backed support for employees affected by COVID-19. The company soon established the steering committee for COVID-19 epidemic prevention, volunteer teams to support COVID-19 epidemic prevention, and issued regulations on operations of these teams and committees. The company's leaders hosted many urgent meetings with these committees and teams to solve emerging difficulties, and propose drastic measures and solutions to effectively prevent the COVID-19 pandemic.

At the same time, the company persistently applied management and solutions to increase productivity and output; maintain the brand name and the market; carry out solutions to reduce investment costs and product costs; streamline the personnel to enhance work performance; and take good care of employees’ life. Dau Tieng Rubber Co., Ltd also proposed Vietnam Rubber Industry Group and relevant authorities to apply worker housing policies; and regularly work with local authorities to implement its development projects.

Thanks to those efforts, the epidemic has been controlled to successfully protect employee health, consolidate production and business, maintain relationships with customers, and boost brand reputation.

Thank you very much!

Dau Tieng Rubber Company was established on June 20, 1975 from a State-owned farm with over 4,000 ha of old, sparse rubber trees and a small latex processing facility furnished with outdated equipment. Going through many stages of development, supported by local authorities and closely directed by Vietnam Rubber Industry Group, the company has become a leading rubber producer in the country.

Dau Tieng Rubber Co., Ltd has planted and replanted nearly 30,000 ha of rubber trees since 1991, bringing the latex yield from 0.65 tons to 2.1 tons per hectare. The company has exploited, processed and sold more than 1,194,940 tons of latex products, fulfilling 106% of the plan, made total revenue of more than VND39,550 billion and paid over VND 6,900 billion to the State Budget.

The company has invested over VND200 billion to build three processing plants powered by advanced equipment and technology to lift the processing capacity from 4,000 tons in 1990 to 47,000 tons in 2010. Its processed products have seen quality increase. Dau Tieng Rubber brand has been trusted by customers in more than 40 countries and territories around the world.

Besides, the company has invested over VND1,000 billion to build and perfect electricity and traffic systems within its facilities in ​​Dau Tieng district and former Ben Cat district (now Bau Bang district and Ben Cat town) and many other infrastructure works to develop its business performance. Thereby, the company has actively helped Dau Tieng district, Bau Bang district and Ben Cat town accelerate rural infrastructure construction in its rubber areas.

Besides, Dau Tieng Rubber Co., Ltd has expanded its operation scale and diversified its business lines. Up to now, the company has made financial investments, established six subsidiaries and one associate company and invested in two other units in Binh Duong, Lai Chau and Lao Cai provinces of Vietnam, as well as Cambodia and Laos. Particularly, the company pooled money to establish Dau Tieng Wood Joint Stock Company to produce and trade rubber wood billets, laminated wood and refined wood products.

Dau Tieng Rubber Co., Ltd invested in An Dien Industry Joint Stock Company to carry out 276-ha Rach Bap Industrial Park, phase 1. The company is expanding the 360-ha second phase of Rach Bap Industrial Park. In addition, Dau Tieng Rubber Co., Ltd has cooperated with Becamex IDC Investment and Industrial Development Corporation to scale up Bau Bang Industrial Park.

In agriculture, in order to improve land-use efficiency and attract investment funds in modern, effective and sustainable agricultural development, priority is given to attracting investment funds for advanced technology. Dau Tieng Rubber Co., Ltd planned the land for high-tech agricultural projects in Thanh An, Minh Hoa and Long Hoa farms, covering ​​over 2,004.88 ha, which were approved by Vietnam Rubber Industry Group.

By Vietnam Business Forum