Despite numerous challenges in 2019, VRG Quang Tri MDF Joint Stock Company made significant efforts to overcome difficulties and successfully fulfilled its planned business targets.
Overcoming Raw Material Challenges
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In 2019, the company faced serious shortages of affordable raw materials. Low-cost mixed wood became scarce; rubber wood from plantation clearances was limited, and replanted forest wood was insufficient. Meanwhile, competition for acacia and eucalyptus intensified due to the expansion of wood-chip export factories.
Additionally, a large-scale Chinese paper mill located near the Vietnam–Laos border began purchasing raw materials directly from local forests, even establishing satellite wood-chipping facilities offering higher prices. This drew away a major share of the region’s available resources. Moreover, a local biomass pellet factory also competed for low-cost byproducts such as wood trimmings and bark.
Effective Cost Management and Operational Efficiency
To cope with these pressures, the company implemented multiple measures to control production costs and maintain profitability:
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Optimized raw material sourcing and purchasing strategies;
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Negotiated better prices with suppliers;
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Enhanced production efficiency and resource utilization;
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Streamlined management processes to minimize waste.
Thanks to these proactive efforts, the company achieved outstanding results, exceeding all targets set by the Vietnam Rubber Group (VRG) in 2019:
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Production output: 205,371 m³ (101.17% of plan)
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Total revenue: VND 1,006 billion
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Post-tax profit: VND 27.52 billion
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Tax contribution: VND 64.46 billion
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Average employee income: over VND 10.4 million/person/month
Commitment to Employee Welfare
VRG Quang Tri MDF has consistently fulfilled its obligations for social insurance, health insurance, and unemployment insurance for 100% of employees. The company conducts annual health checks, ensures workplace safety, and focuses on both material and spiritual well-being. As a result, 100% of employees enjoy stable jobs and steadily rising incomes year after year.
2020 Outlook: Focused Determination Amid Market Uncertainty
The company anticipates that 2020 will remain challenging due to low MDF prices, fierce raw material competition, and the lingering economic impacts of COVID-19. Nonetheless, VRG Quang Tri MDF is determined to achieve its production and business goals for the year:
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Production volume: 204,000 m³ of MDF
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Sales volume: 200,115 m³
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Net revenue: over VND 1,011 billion
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Pre-tax profit: more than VND 31.12 billion
With collective determination and continued innovation, the company aims to maintain its position as one of the leading MDF producers in Vietnam, committed to sustainable growth and efficiency.