Binh Long Rubber Co., Ltd: Generating Sustainable Value on Three Pillars

Boasting nearly five decades of noteworthy achievements in the Vietnamese rubber industry, Binh Long Rubber Co., Ltd has emerged as a pivotal entity within the Vietnam Rubber Industry Group (VRG). Specializing in the cultivation, extraction and processing of rubber latex, under the vigilant guidance of VRG and the exceptional leadership of its Board of Directors and through the collective efforts and solidarity of its dedicated staff, Binh Long Rubber not only delivers premium products and services that inspire trust, but also actively contributes to fostering positive values for its partners, customers and the broader community.

Mr. Le Van Vui (3rd from the right), General Director of Binh Long Rubber, receives the certificate recognizing Binh Long Rubber as one of the Top 10 Sustainable Businesses of 2022

Optimizing internal resources

Binh Long Rubber currently oversees the management of an extensive 14,873.93 hectares of rubber trees, all certified for VFCS/PEFC sustainable forest management standards. The annual latex extraction from this vast area exceeds 19,000 tons, with a commendable yield of 2 tons per hectare. The company efficiently processes and markets over 23,000 tons of latex, generating an annual revenue surpassing VND1,000 billion. With a dedicated workforce of 3,500 employees, each receiving an average monthly salary exceeding VND11 million, Binh Long Rubber stands out as a key unit within the VRG framework.

Notably, Binh Long Rubber has diversified its latex product portfolio to include SVR CV 50, SVR CV 60, SVR 3L, SVR 5, SVR 10, centrifugal latex, and RSS latex. These products adhere to rigorous quality standards, including ISO 9001:2015 for quality management, ISO 14001:2015 for environmental management, PEFC ST 2002 – 2020 for product chain of custody, ISO/IEC 17025: 2017 for laboratory management, and VFCS/PEFC-FM for sustainable forest management. The company's commitment to excellence is reflected in the global export of these certified products to discerning markets such as Germany, Canada, the Netherlands, Valencia, Sweden, Slovenia, Spain, the United States, France, India, Taiwan (China), China, Thailand, and others.

Beyond rubber latex products, Binh Long Rubber leverages its sustainable forest management certification for rubber wood, a valuable resource employed in the production of wooden furniture and various items for both export and domestic consumption.

Binh Long Rubber’s products adhere to rigorous quality standards

Ensuring safe operations and commitment to environmental protection

In an era marked by escalating competition, businesses embracing sustainable development exemplify a profound commitment to their ethos and standing within the market. For Binh Long Rubber, sustainability stands as a strategic goal, recognizing that investments in sustainability are investments in the future, leveraging these factors to augment long-term revenue and profitability.

As a testament to its steadfast dedication to sustainable practices, Binh Long Rubber Co., Ltd earned recognition as one of the Top 10 Sustainable Businesses in 2022 through the Program on Benchmarking and Announcing Sustainable Companies in Vietnam (CSI Program).

“Recognizing sustainable development as a vital trend and a benchmark for business growth, we have proactively embraced this strategy with enthusiasm and innovation, leveraging our own resources. We understand that the foundation of a sustainable company rest on three pillars: Economic Development, Environmental Protection, and Responsibility toward the Community and Society. In particular, Environmental Protection and Responsibility toward the Community and Society are two crucial factors,” said Mr. Le Van Vui, General Director of Binh Long Rubber Co., Ltd.

In addition to maintaining a highly effective business model, Binh Long Rubber is acutely aware that environmental protection extends beyond corporate responsibility and involves collaboration with the local community and authorities. The company actively engages with authorities at all levels to integrate environmental protection initiatives into new rural construction programs, raising awareness among the local populace.

Pioneering sustainable rubber forest management since 2019, Binh Long Rubber has achieved VFCS/PEFC Sustainable Forest Management System Standards certification for its entire 4,000-hectare area. The company has implemented circular production solutions, reusing 70% of treated wastewater with a goal of reaching 100%. It produces approximately 1,000 tons of microbial organic fertilizers annually from wastewater treatment sludge, employing earthworm technology to gradually replace chemical fertilizers for rubber trees. The company has constructed three wastewater treatment systems with a daily capacity of 2,000 cubic meters, along with two automatic and continuous wastewater monitoring systems, ensuring compliance with environmental standards.

Binh Long Rubber's commitment extends to sustainable energy practices, utilizing solar and wind energy to dry latex, reducing reliance on fossil fuels (LPG), and strategically planning to replace machinery and equipment to curtail energy consumption. The company is actively aligning with the government's roadmap, moving toward net zero emissions.

Integrating sustainable development with local engagement

Binh Long Rubber has navigated a remarkable 50-year development journey marked by transformative changes in its status and business scale, underscored by a steadfast commitment to sustainable environmental practices. Throughout this trajectory, the company has demonstrated a profound sense of responsibility to the local community, annually allocating a minimum of VND2 billion toward social welfare initiatives supporting local residents and workers. Noteworthy endeavors include the construction of social welfare projects and homes for the underprivileged, financial contributions to study encouragement and poverty alleviation funds, and support for the development of crucial infrastructure.

Under the effective leadership and strategic direction facilitated by VRG, coupled with the steadfast support from governments at all levels and local communities, the Trade Union of Binh Long Rubber consistently leverages its strength to advocate for employees' lawful and legitimate rights and interests. It actively implements measures to ensure labor safety, prevent forced labor, combat various forms of sexual harassment, and provides learning and advancement opportunities for all. This approach fosters a professional, creative and friendly working environment, effectively balancing the interests of businesses, employees, and the wider community, thereby significantly enhancing the company's overall performance.

In the first half of 2023, Binh Long Rubber demonstrated robust operational performance, producing 44,571 tons of latex, achieving 51.23% of the full-year target (87,000 tons), and procuring 9,294 tons of latex from smallholders, reaching 39.6% of the target (23,500 tons). The yield surpassed two tons per hectare, aligning precisely with the target. Replanting efforts covered 1,096 hectares, equivalent to 54.8% of the target (2,000 hectares). The company successfully processed and sold 55,380 tons, matching 50.1% of the target, generating a total revenue of VND2,649.208 billion, equivalent to 50.8% of the target. The profit before tax stood at VND649.542 billion, reflecting 44.2% of the target, with a substantial contribution of VND386.497 billion to the state budget, reaching 78.9% of the target.

With a workforce exceeding 3,500 employees, inclusive of 48% female workers and 16.1% ethnic minorities, Binh Long Rubber prioritizes fair compensation practices, with an average monthly income of VND11.065 million, including VND9.335 million as salary. Employee policies are diligently applied in a lawful, transparent, and public manner. The company maintains mid-shift meals for workers throughout the year, totaling VND20 billion.

Moving forward, each positive outcome and value generated will serve as the foundation for Binh Long Rubber to make significant strides, consolidate its brand and position, and continually contribute sustainable value to the broader social community.

Source: Vietnam Business Forum