New Right Approach for Binh Duong Rubber JSC

11:00:57 AM | 5/8/2019

Long declines in rubber prices troubled rubber companies across the country and Binh Duong Rubber Joint Stock Company is no exception. However, in the past three years, by boosting the spirit of solidarity and unity plus the acumen of the Board of Directors and the Executive Board in business operations, particularly their bold investment expansion decisions, the company not only overcame hardships but also opened up high development prospects for the future.

Breakthroughs in new business

Binh Duong Rubber Joint Stock Company, formerly a State-owned enterprise founded in 1977, is a member of Becamex IDC Group. In 2015, the company went public and became a joint stock company.

General Director Tran Quyet Thang

Before going public, Binh Duong Rubber Company primarily operated in the rubber sector: Planting, tapping and processing rubber latex for export. After its equitization, in order to promote its advantages and match with development orientations of Binh Duong province, the company added business lines such as real estate investment, construction and industrial park development.

In real estate investment and business, in just three years, Binh Duong Rubber Joint Stock Company impressed the market with the Worker Housing - Trade - Service Project in 5D Residential Area in Lai Uyen commune, Bau Bang district. Launched in 2017, the project is commercially effective from selling and leasing.

With this project, in 2017, Binh Duong Rubber Joint Stock Company recorded revenue and profit breakthroughs, with profit exceeding VND31 billion. After offsetting accumulated losses of VND19 billion in previous years, the net profit was nearly VND10 billion. This was also the first time after many years that the company made a profit and paid a 5% dividend to shareholders. In 2018, its net profit was over VND19.5 billion. Given low rubber prices, most profit came from real estate business.

Possessing a huge land fund in the new industrial and urban development area in Binh Duong province and having support from Becamex IDC Group - an experienced real estate and industrial zone developer, the company’s choice to expand real estate business investment and develop industrial parks is right. The diversification outcome provided huge development potential and opportunities ahead.

Not forgetting traditional business

Despite being successful in real estate business and also identifying real estate and industrial park development as a strategic direction in the coming time, the company does not make light of traditional business: Planting, tapping and processing rubber for export, said Mr. Tran Quyet Thang, General Director of Binh Duong Rubber Joint Stock Company. Accordingly, it will continue to make efforts to restructure this sector to enhance productivity, quality, efficiency and sustainability. In fact, in the past two years, the company’s rubber started to get better, changing from many years of loss to be profitable.

Currently, Binh Duong Rubber Company is managing more than 1,000 hectares of high-yield rubber with four production teams. In 2017, its latex output reached over 7,500 tons, including 357 tons of SVR 10 latex and more than 5,200 tons of SVR3L latex. The company owns a rubber latex processing factory powered by Malaysia’s advanced technology, capable of turning out 6,000 tons a year and supplying the market with natural rubber products such as SVR 10 and SVR 3L featuring premium quality and beautiful colors. Therefore, Binh Duong Rubber brand has become well-reputed among domestic and foreign customers.

Talking about the company’s positive progress over the past time, General Director Tran Quyet Thang said that its achievements came from efforts of all employees and close support from Becamex IDC Group and Binh Duong Province as well as the right equitization policy of the government. “Operated as a joint stock company, employees are more self-conscious, more determined to work harder together to overcome difficulties and achieve progress,” he added.

In addition to finding the right direction, what interested and excited him most is better livelihoods of its employees. Currently, the company has nearly 450 employees whose average salary is VND8.5 million a month. Better spiritual life has also facilitated Party and Union activities. With profitable business, the company spent a lot of money to carry out social security policies in the locality.

Quoc Hung