With a long-term strategy to diversify both agricultural and industrial products, the Vietnam Rubber Group (VRG)is restructuring its industrial manufacturing subsidiaries to improve overall efficiency and competitiveness. The goal is to build a unified VRG industrial brand, establish standardized product quality systems, and expand the group’s presence in domestic and international markets. Mr. Huynh Tan Sieu, Head of VRG’s Industrial Department, shared insights with Vietnam Rubber Magazine.
2023 Performance of VRG’s Industrial Subsidiaries
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According to Mr. Sieu, VRG currently has five subsidiaries producing industrial rubber products:
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Ben Thanh Rubber JSC
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VRG Khai Hoan JSC
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Geru Star Sports JSC
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SADO Rubber Thread JSC
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Dong Phu Rubber Engineering JSC
(Previously, the Rubber Industry & Import-Export JSC also produced industrial goods but halted operations in late 2022 due to a lack of orders.)
VRG’s industrial product portfolio includes latex mattresses and pillows (DORUFOAM), medical gloves (VGlove), sports balls (Geru Star), rubber threads (SADO), and conveyor belts (Ben Thanh Rubber) — all of which have earned strong domestic and international reputations. The group has also launched VRG-branded truck and motorbike tires, meeting Japanese JIS D4230 and Vietnamese TCVN 7533:2005 standards.
Despite these achievements, 2023 was a challenging year due to global economic slowdown and geopolitical conflicts, particularly the Russia–Ukraine war. Total revenue from industrial subsidiaries reached VND 880 billion, equivalent to 73% of the annual target.
From 2018 to 2023, VRG produced and sold over 5,363 truck tires and 31,300 two-wheeler tires under the VRG brand, which have been praised for durability, traction, and performance.
Key Solutions to Improve Competitiveness
Mr. Sieu emphasized that VRG’s industrial companies must adapt to market realities through technological upgrades, operational efficiency, and branding improvements. Key strategies include:
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Restructuring and Workforce Optimization
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Streamlining operations to ensure efficiency and sustainability.
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Building a skilled and dedicated workforce familiar with modern industrial processes.
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Cost Reduction and Technological Innovation
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Saving production costs, upgrading equipment, and reducing raw material and labor waste.
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Strengthening product quality control and implementing lean manufacturing principles.
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Market Expansion and Branding
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Developing flexible sales policies tailored to each regional market.
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Expanding domestic and international distribution networks.
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Enhancing marketing via Vietnam Rubber Magazine, Vifa, Vietbuild, and international trade fairs to boost brand visibility.
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Industrial Restructuring Plans 2024–2030
1. Ben Thanh Rubber JSC
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The company will invest in a new 2-meter-wide conveyor belt production line with a capacity of 130,000 m²/year to meet growing demand for large-width industrial belts.
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In addition to the new line, Ben Thanh will continue to improve product quality, lower production costs, and develop new technical rubber products to enhance competitiveness.
2. VRG Khai Hoan JSC
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As a leading medical glove manufacturer in Vietnam, the company faces strong competition from newer, more automated production lines.
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From 2025 onward, it plans to replace single lines with double lines, increasing output from 460 to 600 cartons per day, improving efficiency and reducing defect rates.
3. Rubber Industry & Import-Export JSC
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Currently, the pet toy production line at Tam Hiep Technical Rubber Factory is temporarily operating due to relocation plans in Dong Nai.
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The company will seek a new production site and potentially revive other product lines such as shoe soles, seals, and rubber mats once relocation is completed.
4. Geru Star Sports JSC
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The company will maintain its strong sports equipment product lines while expanding into inflatable pet toys, medicine balls, and sports products for the disabled.
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However, due to limited urban factory space and aging machinery, expansion is challenging. By 2030, if relocation is required, Geru Star will partially move key facilities such as boilers and waste systems while leasing part of its existing space.
Long-Term Vision
VRG’s industrial strategy aims to unify branding, standardize quality, and leverage economies of scale across subsidiaries. Through modernization, innovation, and tighter quality control, VRG seeks to elevate its industrial rubber products to compete globally — reinforcing its position as a leader in Vietnam’s rubber industry.