To promptly resolve difficulties in rubber processing, raw material management, and product consumption in northern mountainous areas, the Vietnam Rubber Group (VRG) held a workshop on December 20 at Dien Bien Rubber JSC to evaluate the overall situation of latex production and processing across nine companies operating in six provinces.
Current Production Situation
According to Deputy General Director Truong Minh Trung, VRG currently has nine companies in the northern mountainous provinces of Dien Bien, Lai Chau, Son La, Ha Giang, Lao Cai, and Yen Bai. Despite adverse weather and a shorter tapping season compared to other regions, these companies managed to organize production effectively, reaching 21,000 tons of latex in 2023, equivalent to 95% of VRG’s assigned plan.
However, only 56.51% of the region’s total latex output was processed locally. Approximately 29.58% had to be sent to other regions for processing, while 13.91% was sold as raw latex.
This situation has caused difficulties in outsourced processing management, increased transportation costs, and reduced business efficiency. Selling raw latex instead of processed rubber has limited value addition and reduced overall profitability for VRG.
Proposed Solutions from Member Companies
Leaders of the nine companies in the region emphasized the need to:
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Strengthen quality control of raw latex used for outsourced processing;
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Ensure strict maintenance and timely replacement of machinery at processing plants;
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Optimize labor allocation and supervision to improve production efficiency;
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Implement three-party monitoring systems to maintain transparency and product quality.
They also highlighted that better internal coordination and local processing capacity would improve profitability and competitiveness of VRG’s northern operations.
VRG’s Direction: Strengthen Local Processing Capacity
Deputy General Director Truong Minh Trung acknowledged the companies’ practical insights and instructed them to align their production and processing plans with the overall strategy approved by VRG.
He emphasized the need to:
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Regularly update domestic and international rubber market trends to propose timely solutions;
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Accelerate construction of the Dien Bien Rubber Processing Factory, ensuring sufficient capacity to handle latex from Dien Bien Rubber JSC and Muong Nhe Rubber JSC;
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Provide training and technical support to prepare for full-scale operation once the factory is completed.
Additionally, he stressed the importance of training and upskilling local ethnic minority workers, strengthening the connection between companies, VRG, and local authorities, thereby contributing to regional socio-economic development and fostering mutual trust with local communities.