VRG Khai Hoan Joint Stock Company, Vietnam’s largest medical glove manufacturer under the brand VGlove, has officially doubled its annual capacity to 5 billion gloves, with full production orders already secured for both 2021 and 2022. Most of its output is exported to major markets such as the United States, Europe, Japan, while a portion serves the domestic healthcare sector.
New Factory Operational in October 2021
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The COVID-19 pandemic has permanently changed global consumer habits toward personal protective equipment (PPE) such as masks, gloves, and sanitizers. According to Mr. Duong Duy Phu, General Director of VRG Khai Hoan, global demand for medical gloves will remain strong for at least the next five years.
To seize this opportunity, the company invested in a new production facility, boosting total capacity from 2.5 billion to 5 billion gloves per year. The new plant began operations in October 2021, ensuring uninterrupted supply to meet surging global demand.
In addition to individual consumer demand, several countries have increased their national stockpiles of medical gloves, opening new growth opportunities for VRG Khai Hoan in the post-pandemic period.
Remarkable Growth in Revenue and Profit
VRG Khai Hoan’s financial performance has surged since 2020. Revenue more than doubled from VND 884 billion to 1.8 trillion, while profit exceeded VND 500 billion, compared to just VND 1 billion in prior years.
The company’s gross profit margin improved sharply, jumping from 5% in 2019 to over 32% in 2020, reflecting strong global demand and operational efficiency.
“Due to the sharp rise in demand, the factory is operating at full capacity,” Mr. Phu shared. “We even had to decline several orders. Currently, 30% of VGlove products serve the domestic market, including hospitals, while 70% are exported to the U.S., Europe, Japan, China, and New Zealand.”
Strong Financial Results in 2021
In the first eight months of 2021, the company achieved:
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Revenue: VND 1.805 trillion – up 19% year-on-year.
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Pre-tax profit: VND 839 billion, up 756% year-on-year.
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Post-tax profit: VND 681 billion, up 657% year-on-year.
The company maintains excellent labor welfare policies, ensuring stable income for 1,244 employees, with an average monthly salary of over VND 10 million.
Commitment to Employee Welfare and Social Responsibility
VRG Khai Hoan was among the first to implement the “3-on-site” production model during Vietnam’s lockdown in July 2021. Employees working on-site received daily allowances of VND 81,000 in July and 144,500 in August. Those unable to participate were supported with VND 3.76 million per month.
The company trade union also provided extensive care packages:
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Financial aid for workers affected by COVID-19 (F1 and isolation cases).
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Meal support (three meals daily) for all on-site employees.
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Scholarships for 185 employees’ children with excellent academic performance (VND 45 million total).
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Mid-Autumn Festival gifts worth VND 155 million for all employees.
Additionally, VRG Khai Hoan donated over VND 1.8 billion to local community welfare programs and COVID-19 prevention funds.
Sustainable Growth and Industry Leadership
With expanded capacity, advanced production lines, and a strong global presence, VRG Khai Hoan continues to reinforce its position as a leading medical glove manufacturer in Vietnam and Asia, committed to innovation, quality, and social responsibility.