Despite significant challenges caused by the COVID-19 pandemic, which disrupted contracts and operations, Rubber Mechanical Joint Stock Company (RECO) managed to overcome difficulties through unity and innovation. In 2020, the company not only met but exceeded its key production and business targets, reaffirming its leading position in Vietnam’s rubber machinery sector.
Strong Financial Performance Despite Adversity
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In 2020, RECO achieved VND 101 billion in revenue (121.4% of plan) and VND 5.9 billion in pre-tax profit (156.1% of plan). The company maintained a high average employee income of nearly VND 12 million per month and paid an 8% dividend to shareholders.
For 2021, despite continued economic uncertainty, RECO set pragmatic targets:
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Revenue: over VND 68 billion
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Pre-tax profit: over VND 3 billion
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Dividend rate: above 6% of charter capital
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Average employee income: over VND 8 million/month
The company anticipates exceeding its 2021 business plan by 5–10%, emphasizing job stability and sustainable growth.
Innovation and Customer-Centric Strategy
To achieve these goals, RECO’s Board of Directors and Management have focused on two core priorities:
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Expanding market reach – strengthening marketing and customer care both within and beyond the rubber industry, especially in Laos and Cambodia.
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Enhancing product quality and sustainability – applying advanced engineering and technology in machine design and upgrading traditional equipment for rubber latex processing.
These improvements aim to deliver environmentally friendly, cost-efficient, and high-quality machinery to rubber producers.
Technological Upgrades and Green Solutions
RECO has introduced several successful innovations, including:
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Upgraded deodorizing tower systems – replacing single towers with dual-tower configurations that improve odor removal efficiency for rubber drying furnaces.
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New floating combustion furnaces – providing heat for rubber sheet processing lines, saving over 25% of firewood compared to conventional systems.
All RECO’s machinery and equipment supplied to customers inside and outside the rubber industry have received high praise for quality, price competitiveness, and after-sales service.
Strategic Vision for Sustainable Growth
At the company’s 2021 Annual General Meeting, Mr. Truong Minh Trung, Deputy General Director of Vietnam Rubber Group (VRG), commended RECO’s achievements:
“Rubber Mechanical JSC is a key member of VRG in manufacturing mechanical equipment for rubber processing. VRG is committed to investing in RECO’s future development. The company must now establish medium- and long-term strategies aligned with modern industrial trends, strengthen customer service, and maintain both domestic and international market share.”
He further encouraged RECO’s leadership to continue innovating management practices and diversifying its product portfolio to meet market demands. The ultimate goal is to ensure steady income for workers, increase profitability, and elevate the RECO brand as a symbol of quality and sustainability in Vietnam’s rubber machinery industry.