Despite facing numerous challenges in 2024, wood-processing units under the Vietnam Rubber Group (VRG) made great efforts to sustain operations and achieve key targets in revenue, tax contributions, and worker income.
Overcoming Challenges to Sustain Growth
VRG currently manages 16 member wood-processing companies with 18 factories across the Southeast, Central Highlands, South Central Coast, and Mekong Delta regions, with a combined annual design capacity of nearly 1.09 million m³.
-
Primary wood products: 12 companies produce wood blanks, 6 produce laminated boards, and 6 produce finished products.
-
MDF (Medium-Density Fiberboard): VRG operates 3 MDF factories with 5 production lines, accounting for around 50% of Vietnam’s total MDF output.
In 2024, VRG’s wood-processing units faced serious headwinds due to geopolitical tensions in the Middle East, Red Sea, and Russia–Ukraine, which disrupted logistics and kept freight costs high. Rising import prices for raw materials, transportation delays, and stricter import-market requirements on quality, safety, traceability, and sustainability made competition tougher.
Meanwhile, declining global demand and fewer orders led to lower selling prices, while FDI enterprises dominated the export market. Domestic firms also struggled with labor shortages as workers shifted to foreign-invested companies. Despite these pressures, VRG’s wood subsidiaries adapted by optimizing resources and implementing flexible production strategies.
Some units achieved exceptional profit growth, such as:
-
MDF VRG Kien Giang: 186.29% of profit target
-
MDF VRG Dongwha: 111.22% of profit target
Overall, the sector achieved:
-
Output: 1.104 million m³ (97% of plan)
-
Revenue: VND 5,417 billion (94% of plan)
-
Post-tax profit: VND 162 billion (81% of plan)
-
Average worker income: Over VND 10 million per month
Ensuring Worker Welfare and Motivation
Alongside production, VRG’s wood companies launched widespread emulation and reward programs from early 2024, motivating employees to innovate and improve productivity. Monthly and annual recognition ceremonies honored individuals and teams with outstanding achievements or technical innovations.
The companies also actively participated in cultural, artistic, and sports movements organized by VRG and local authorities, helping strengthen unity and team spirit among workers.
Despite a challenging business environment, these enterprises successfully maintained stable production, safeguarded jobs, and ensured income for over 1,665 employees, while continuing to invest in innovation and sustainable growth.