Despite the global decline in wood consumption and the sharp increase in raw material and energy prices, the Vietnam Rubber Group (VRG)’s wood processing sector has continued to maintain stable operations and ensure good livelihoods for workers.
Overcoming Market Challenges
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On December 7, the VRG Wood Processing Emulation Bloc held its 2023 Summary Conference and signed the 2024 Emulation Agreement.
Throughout 2023, the industry faced multiple headwinds — prolonged geopolitical tensions, global inflation, and unstable domestic fuel and material prices. Rising transport costs, especially for exports, combined with lower domestic selling prices, put pressure on profit margins across the sector.
At the same time, increases in the cost of essential inputs significantly raised production expenses, affecting both the profitability and operational efficiency of member companies.
Nevertheless, through proactive management and collective effort, the bloc’s companies successfully met or exceeded key production and revenue targets.
Impressive Results Amid Difficult Conditions
In 2023, the bloc achieved a total production volume of nearly 1.076 million cubic meters of wood products.
Outstanding performers included:
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Thuan An Wood Processing JSC – exceeding plan by 48.98%
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Tay Ninh Wood Processing JSC – exceeding plan by 44.27%
The bloc’s total revenue reached VND 5,510 billion, 73.89% higher than the annual plan. Leading units were:
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Tay Ninh Wood Processing JSC – 134.7% of plan
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Kien Giang MDF JSC – 100% of plan
Importantly, the average monthly income of workers across all units reached VND 9.15 million per person, reflecting VRG’s strong commitment to employee welfare and sustainable workforce development.
Promoting Social Responsibility and Solidarity
Beyond production and business performance, the bloc actively engaged in social and charitable programs. In 2023, it:
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Awarded scholarships worth VND 32 million to disadvantaged students, and
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Donated 20 gift packages worth VND 8 million to families in difficult circumstances.
These initiatives demonstrate the wood industry’s sense of corporate responsibility and solidarity with local communities.
Leadership for 2024 Term
At the conference, the bloc elected new leadership for 2024:
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VRG Dongwha MDF JSC – appointed as Bloc Head
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Thuan An Wood Processing JSC – appointed as Bloc Deputy Head
The two companies pledged to continue fostering innovation, efficiency, and collaboration, ensuring the wood-processing bloc’s continued success under challenging global conditions.