Diversifying Production for Further Development

5:13:43 PM | 13/11/2008

For ten years of operation, Quang Nam Rubber Company has gained a firm foothold in the market. Vietnam Business Forum had an interview Mr Nguyen Duy Phuc, Director of the Company about advantages and difficulties as well as development strategy in the future.  
Can you make an overview of the company’s achievements? 
Quang Nam Rubber Company was established and became a member of Vietnam Rubber Group in 1998 when the rubber industry was meeting with many difficulties in production as well as consumption due to decrease in price of rubber latex...Moreover, rubber cultivation was still a new sector in Quang Nam at the time. The company had learnt experiences from other companies and tried to retrain labour force which was very bad at professional skills... With encouragement and assistance from the Quang Nam Rubber Group and support from local people, the company has generated jobs for local people and helped them reduce poverty.
 
To date, the company has run four plantations which generate jobs for more than 1,300 local people with monthly salary of VND1.7 million per person on average. Of them, 395 are ethnic labourers. After ten years of operation, the company has expanded its rubber cultivation from 10 hectares in December, 1998 to 3,150 hectares by the end of 2007. This year, the company plant to grow 200 hectares of rubber, raising total rubber cultivation area to 3,350 hectares.  
 
In 2006, the company started its first harvest. After three years, the harvest area reached 684 hectares. The production output has also increased year by year from 34 tonnes in 2006, up 13 per cent to 176.96 tonnes in 2007, up 18 per cent. The company plans to raise the production output to 500 tonnes this year, up 70 tonnes set by the group. It also plans to increase rubber latex yield this year.
 
In recent years, the company has diversified its production: carrying out household animal husbandry model which has helped mountainous residents to improve their living’s standard. The company now owns more than 1,000 cows. In the upcoming time, it will enlarge its husbandry scale, and invest in other sectors such as infrastructure, residential area and industrial zone with the aim at earning higher profits. The company has also paid labourers by the job to encourage them to contribute more to the development of the company.  
 
What has the company done to encourage labourers to promote their ability? 
 
Over the past years, the company has ceaselessly paid attention to improve labourers’ living standard. It has also held on-the-sport recruitment and training courses to retrain labourers. We have launched emulation movement to encourage labourers to further improve their skills. The company has built a clinic to take care of labourers’ health and their relatives. We have launched commendation and reward fund and a fund to support excellent poor worker. 
 
To further develop Vietnam’s rubber industry, what should be done?
Vietnam’s rubber industry owns big potentials, as the country’s location and weather is very favourable for rubber tree. Moreover, domestic and global rubber demand is increasing day by day. In the upcoming time, to speed up development of the local rubber industry, it is very necessary to lower production cost, apply advanced technology, practice thrift in production, improve skills for labourers, raise prestige, improve quality, and diversify models… Boosting cooperation with other partners to better exploit the potentials is also very important to produce finished rubber products and export them to worldwide.

Huyen Trinh