The Vietnam Rubber Group (VRG) currently operates six companies producing industrial rubber products, with estimated total revenue in 2023 reaching VND 880 billion, equivalent to 73% of the annual target.
Despite difficulties stemming from the global economic slowdown, the Russia–Ukraine conflict, and falling demand in major markets, these companies have maintained stable production, safeguarded jobs, and ensured worker incomethrough a variety of adaptive business strategies.
Proactive Solutions to Expand Market Share
Among VRG’s industrial product units, Ben Thanh Rubber JSC achieved the best business results in 2023 by implementing comprehensive measures to stabilize consumption, strengthen trade promotion, and expand market share.
Thanks to these efforts, the company gained 34 new customers (28 domestic and 6 international), raising its total customer base to 764 clients. Sales volume reached 19 million inches of industrial belts (103% of plan), 173,000 m² of conveyor belts (98.2% of plan), and 1,800 tons of technical rubber (75% of plan).
Total revenue hit VND 329.4 billion (nearly 100% of plan), profit reached VND 24.1 billion (exceeding plan), and VND 29 billion was contributed to the state budget. Notably, Ben Thanh Rubber has been honored among Vietnam’s Top 100 Sustainable Enterprises for five consecutive years (2018–2023).
General Director Nguyen Tran Nghiem Vu shared:
“Our sustained growth results from two strategic directions. First, a focused growth strategy—maximizing resources to strengthen our current product lines and markets. Second, a diversification strategy—developing new products and targeting new markets, particularly in the field of technical rubber.”
Meanwhile, Dong Phu Technical Rubber JSC launched new product lines with diverse sizes and models tailored to consumer preferences. The company expanded exports to South Korea, Singapore, Taiwan, China, Australia, New Zealand, Canada, and the United States, while maintaining 265 domestic agents across 50 provinces, and official distributors in China and Cambodia.
In 2023, it also entered into a distribution partnership with Con Cưng, Vietnam’s largest mother-and-baby retail chain with over 1,000 stores nationwide, further enhancing market coverage.
Overcoming Difficulties to Protect Workers’ Livelihoods
Due to declining demand, several factories had to arrange rotational shifts to maintain production while awaiting market recovery. Export orders to Europe, the Americas, and South Africa dropped sharply, affecting revenue for companies such as Rubber Industry & Export-Import JSC, Geru Star Sports JSC, and VRG Khai Hoan JSC.
Despite economic challenges, these companies managed to maintain stable employment, with average monthly salaries above VND 10 million per worker.
In 2023, Geru Star Sports JSC produced 885,000 sports balls (82% of plan), selling 835,000 units (77.45% of plan), generating revenue of over VND 85 billion (92.67% of plan), and post-tax profit of VND 1.1 billion (80.16% of plan). The company contributed over VND 2 billion to the state budget (128% of plan).
General Director Tran Van Hanh stated:
“These results reflect the dedication of all employees. In 2024, we will continue innovating, especially developing hybrid footballs using combined molding and bonding technologies widely adopted by major global brands. We aim to strengthen our presence in northern Vietnam and maintain lean, efficient operations for sustainable growth.”
Similarly, Rubber Mechanical JSC expanded its installation and maintenance services for rubber processing machinery across Vietnam, Laos, and Cambodia. Although financial constraints and low rubber prices slowed client investments, the company still exceeded 2023 business targets, recording VND 99 billion in revenue (102.15% of plan), VND 5.7 billion in pre-tax profit (104% of plan), and nearly VND 3 billion in tax contributions—while maintaining average worker income above VND 10 million per month.
Shared Goal for 2024: Stability and Unity
All industrial product subsidiaries under VRG share the same 2024 objective: to overcome challenges, sustain production stability, and ensure worker welfare. By mobilizing resources, fostering innovation, and enhancing collaboration, they aim to boost business performance, protect jobs, and maintain sustainable operations throughout the year.