VRG: Breakthrough to achieve 8% growth target in 2025

2025 promises to be an important pivotal year for VRG, as the Group aims to achieve 8% growth, far exceeding the planned targets (revenue increased by 4.5%, profit increased by 4.7% compared to 2024). Based on the 2024 business performance report and 2025 development strategy, VRG has built a clear roadmap with 12 synchronous solutions, focusing on core growth drivers such as rubber, industrial parks, and green growth. These efforts not only affirm VRG’s position in the rubber industry but also demonstrate a strong commitment to sustainable development and social responsibility.

Solid foundation from 2024

In 2024, VRG overcame many challenges from global market fluctuations, natural disasters, and declining demand in the wood and rubber industry. With consolidated revenue reaching VND 26,307 billion (up 6.5% compared to 2023), pre-tax profit of VND 4,450 billion (up 8.2%), and budget contribution exceeding 54% of the plan (VND 6,100 billion), VRG has demonstrated its ability to adapt flexibly and manage effectively. In particular, GVR’s stock price peaked at VND 39,000/share on July 15, 2024, bringing the market capitalization value to VND 130,000-150,000 billion, affirming investors’ confidence in the Group’s long-term strategy.

The rubber sector continues to be the mainstay, contributing 93.4% of revenue (VND 24,582 billion) thanks to increased latex prices (VND 42.9 million/ton, up VND 7.2 million compared to 2023) and exploited output reaching 445,200 tons. Meanwhile, the industrial park, despite facing difficulties due to the slow progress of the Nam Tan Uyen expansion project, still created jobs for 200,000 workers and contributed VND 7,052 billion to the budget. These results are a solid foundation for VRG to confidently move towards its ambitious growth target in 2025.

Strategic solutions for 8% growth

To achieve the 8% growth target, VRG has proposed 12 key solutions, focusing on three pillars: economy, environment, and society.

Regarding increasing rubber production and consumption: VRG aims to exploit 452,000 tons of rubber latex (up 1.5% compared to 2024), with an average selling price of VND 40.8 million/ton (up 5.8% compared to the 2024 plan). Optimizing production costs and expanding export markets, especially to the EU through compliance with the EU Deforestation Prevention Regulation (EUDR), will help the rubber sector contribute 4-5% to the growth target. Companies such as Dong Nai Rubber have pioneered the implementation of traceability systems, creating a competitive advantage in the international market.

In the solution to promote industrial park development, with a plan to lease 206 hectares of new industrial park land (an increase of 338.9% compared to 2024), VRG expects this sector to become the main growth driver. Key projects such as Nam Tan Uyen expansion (346 hectares) and Hiep Thanh phase I (495 hectares), if completed on schedule, can increase industrial park revenue to VND1,500-2,000 billion, contributing 2-3% to the growth target. The establishment of the Industrial Park Development and Management Board and support from the Ministry of Planning and Investment will help VRG make the most of the existing 4,628 hectares of land fund.

Regarding promoting green growth and renewable energy, VRG continues to affirm its pioneering role in sustainable development with 215,624 hectares of VFCS/PEFC certified rubber forests and 471,000 tons of VRG branded rubber. Renewable energy projects, such as rooftop solar power (13 million kWh, reducing 8,800 tons of CO2), along with the potential for carbon credits in Laos and Cambodia, not only enhance brand value but also create new sources of revenue, contributing about 1-1.5% to growth.

Reducing the rate of indirect labor to below 8% and implementing the Digital Transformation Project (GIS.VRG system, cloud storage, digital document management) will help VRG save management costs and improve operational efficiency. These solutions can contribute 1-2% to profits, while creating a foundation for new areas such as high-tech agriculture (4,030 hectares, mainly growing Cavendish bananas).

Many challenges remain

Despite its clear strategy, VRG still faces many challenges, such as fluctuations in rubber prices, the market for wood and rubber industrial products has not recovered, and the slow progress of some industrial park projects. To ensure the target of 8% is achieved, according to VRG leaders, it is necessary to implement solutions such as expanding export markets, increasing rubber consumption to new markets such as Southeast Asia and the Middle East, and completing the EUDR system for all member companies.

To recover the wood industry, it is necessary to invest in upgrading technology and finding alternative markets to improve revenue (wood output is expected to increase by 7.5-190.9% compared to 2024).

In addition, it is necessary to speed up the progress of industrial parks such as prioritizing site clearance and completing infrastructure to put projects into operation in the first and second quarters of 2025.

Expedite the exploitation of carbon credits. Cooperate with international partners to develop the carbon credit market, especially in Laos and Cambodia.

Sustainable vision

With 95 years of tradition and leading position in the Vietnamese rubber industry, VRG not only aims for economic goals but also commits to sustainable development, associated with social responsibility. In 2024, VRG contributed nearly 3 billion VND to social security activities, supporting flood and storm recovery and building new rural areas. 14 member companies were honored in the Top 100 Sustainable Enterprises in Vietnam, of which Chu Pah Rubber was in the Top 10, demonstrating the Group’s comprehensive development strategy.

In 2025, with the consensus of more than 81,000 employees and support from management agencies, VRG has every opportunity to achieve and exceed the 8% growth target, continuing to affirm its leading role in Vietnam’s agriculture and industry, while contributing to the prosperity of the community and the environment.