On November 20, 2024, the Wood Industry Emulation Cluster under Vietnam Rubber Group (VRG) held its annual review conference at Thuan An Wood Processing Joint Stock Company, summarizing achievements in production, business, and labor movements throughout the year.
Overcoming Difficulties Amid Global Challenges
In 2024, VRG’s wood processing units faced numerous challenges due to global instability, including conflicts in the Middle East, the Red Sea, and Ukraine–Russia, as well as high ocean freight costs that drove up import prices for raw materials. The increase in material, transportation, and logistics costs made it harder for companies to remain competitive on price, especially as import markets tightened quality and sustainability standards.
Compounding the issue, the lack of new orders and slower consumption led to intense competition on product pricing, while the diversification of product types required modern, high-tech machinery investments. Vietnam’s wood exports are still largely dominated by foreign-invested enterprises (FDI), posing additional pressure on domestic firms.
The labor shortage has also resurfaced as FDI companies attract skilled workers, affecting production efficiency and profitability. Despite these difficulties, VRG’s wood companies have made significant progress:
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Total output: Over 1.104 million m³, reaching 97% of the plan.
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Revenue: More than VND 5.417 trillion, achieving 93.5% of the plan.
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Profit after tax: Over VND 162 billion, reaching 81% of the target.
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Average income: Above VND 10 million per worker per month.
Notably, several companies exceeded profit targets, including MDF VRG Kien Giang (186.29%) and MDF VRG Dongwha (111.22%), demonstrating resilience and strong performance amid adversity.
Active Emulation and Solidarity Across Units
Alongside production efforts, emulation movements were actively launched within the cluster. Units registered performance targets early in the year, conducted monthly evaluations, and honored outstanding collectives and individuals for innovation and productivity.
The wood processing cluster also participated enthusiastically in cultural, sports, and community activities, creating a spirit of unity and motivation among employees. Social responsibility programs included scholarship funds, charity donations, and poverty reduction initiatives in collaboration with local authorities such as Minh Hung Commune (Chon Thanh District, Binh Phuoc Province).
Recognition of Outstanding Achievements
At the conference, the cluster voted to honor companies for their outstanding contributions in 2024:
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Emulation Flags from the Commission for the Management of State Capital (CMSC): MDF VRG Kien Giang and Thuan An Wood Processing JSC.
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Emulation Flag from VRG: MDF VRG Dongwha.
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VRG Certificate of Merit: MDF VRG Quang Tri.
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Vietnam Rubber Industry Trade Union Flags: MDF VRG Kien Giang and Thuan An Wood.
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Trade Union Certificates of Merit: Dongwha and Sai Gon VRG Investment.
The conference also elected new leaders for 2025: MDF VRG Quang Tri as Cluster Head and MDF VRG Kien Giangas Deputy Cluster Head.
Despite global and domestic headwinds, VRG’s wood sector has demonstrated remarkable adaptability, maintaining stable operations, protecting workers’ livelihoods, and reinforcing its position as a key contributor to Vietnam’s sustainable industrial growth.