The Vietnam Rubber Group (VRG) currently operates 65 rubber plantation companies with a total area of 407,800 hectares across Vietnam, Laos, and Cambodia, along with 59 latex-processing factories with a combined design capacity of 636,400 tons per year.
In recent years, to reduce production costs, lower product prices, and minimize emissions, many VRG member companies have begun transitioning from traditional fossil fuels to biomass and other renewable energy sources—a key step toward sustainable and green manufacturing.
From Diesel and Gas to Biomass Energy
The Ba Ria Rubber Joint Stock Company processes nearly 15,000 tons of latex annually, producing grades such as SVR10, SVR5, SVR3L, CV50, and CV60. Previously, the plant’s drying system was powered by diesel fuel. Since September 2023, the factory has switched to a biomass-based drying system.
According to Nguyen Van Hoang, Director of the Ba Ria Rubber Processing Plant, “The new system uses rubber wood chips as biomass fuel. It’s easier for workers to operate and offers better temperature control compared to diesel drying.”
Similarly, the Hoa Binh Rubber Company has fully converted its heating system from diesel to biomass since early 2023, and operations have remained stable and efficient.
At Dong Nai Rubber Corporation, Tran Van Manh, Assistant Director of the Processing Division, shared: “To meet growing customer expectations and promote green growth, we are implementing biomass conversion across all factories. This initiative supports our three key objectives—economic efficiency, environmental protection, and social responsibility—and will enhance production sustainability once officially approved.”
Improving Production Efficiency and Environmental Protection
Under the old system, drying one ton of high-grade latex required 22 liters of diesel, and up to 33 liters for mixed latex. With biomass drying, fuel costs are reduced by approximately 20%.
Director Nguyen Van Hoang reported that after three months of operating the biomass drying system, the factory saved over VND 637 million in operating costs, while achieving more consistent product quality, with evenly cured latex and brighter color.
Le Van Ha, Director of the Hoa Binh Rubber Processing Plant, added:
“With diesel-based direct-heat systems, incomplete combustion often leaves soot on the product, affecting color and quality. The biomass system uses indirect heat transfer and heat recovery technology to efficiently convert solid-fuel chemical energy into steam energy. This improves heat efficiency, shortens drying time, and increases throughput by up to 10% without compromising latex quality.”
For SVR3 latex, two key indicators—Po (plasticity) and color—improved under biomass drying. CV latex products also showed more stable PRI (Plasticity Retention Index), raising overall product value and customer satisfaction.
Expanding the Use of Green Energy Across VRG
Currently, 12 VRG factories have completed the transition from diesel-fired to biomass-fired drying systems. In addition to biomass, several member companies are adopting rooftop solar energy and other renewable solutions.
By the end of 2022, VRG’s total installed capacity of rooftop solar systems reached 10,112.25 kWp, equivalent to reducing 10,321.3 tons of CO₂ emissions per year.
This growing commitment to renewable energy not only aligns with VRG’s sustainable development goals but also enhances the Group’s competitiveness in global markets increasingly demanding low-carbon production.