That was the direction of Mr. Le Thanh Hung – General Director of VRG at the Conference summarizing production, business and consumption activities in 2024 organized by VRG on March 27.
Reporting on the production and business situation, purchasing in 2024 and the first 2 months of 2025, Mr. Tran Nhu Hung – Head of VRG Business Market Department, said that as of December 31, 2024, the whole Group exploited 445,041 tons, reaching 100.2% of the plan; processed 499,633 tons, reaching 101.6% of the plan; purchased 77,942 tons, reaching 91% of the plan, 16,853 tons (27.6%) higher than in 2023; Consumption of 521,651 tons, reaching 100.2% of the plan and 1,361 tons higher (or 0.3% increase) compared to the same period in 2023. Average selling price of 44.05 million VND/ton, 12.75 million VND/ton (29%) higher than the average selling price in 2023.
The Group’s policy is to purchase rubber latex from smallholders in the spirit of ensuring effective business, affirming its role in supporting smallholder rubber. At the same time, it aims to maximize the processing capacity of rubber factories, as a way to compensate for the shortage of raw latex due to annual rubber liquidation, contributing to stabilizing and increasing processing output, reducing rubber latex processing costs.
The Group’s purchasing work in recent years has achieved certain results, contributing significantly to the overall production and business results and demonstrating its role and position of economic and social significance in the area, receiving support and high appreciation from the government and people.
Looking ahead to 2025, Vietnam’s rubber exports are expected to continue to grow as demand from China shows signs of recovery. Meanwhile, according to data from the Association of Natural Rubber Producing Countries (ANRPC), rubber production in major producing countries in Southeast Asia has been on a downward trend in recent years. Global supply is expected to increase at an average annual growth rate of 1.2% during 2025-2030. Global demand is forecast to grow significantly faster at an average annual rate of 2.6% during the same period.
As of February 28, the entire Group exploited 54,607 tons, reaching 12.1% of the plan, 2,128 tons (3.9%) lower than in 2024; processed 78,004 tons, reaching 11% of the plan, an increase of more than 3,673 tons (4.7%) compared to 2024; purchased 13,692 tons, reaching 19% of the plan, 5,862 tons (43%) higher than in 2024; consumed 51,161 tons, reaching 9% of the plan, 15,611 tons (33%) lower than the same period in 2024. The average selling price was VND 51.16 million/ton, VND 16.61 million/ton (32%) higher than the average selling price in 2024.
Long-term contracts as of February 28, the Group signed 189,910 tons; of which, signed according to the SGX formula (94%) and according to MRE (0.5%). The most signed contract types are SVR10/20 (69%); SVR CV50/60 (13%); SVR L/3L (9%); Latex (3%).
As of February 28, the entire Group purchased 14,339 tons, reaching 19.7% of the plan, 5,362 tons (37%) higher than in 2024. The purchase price of latex in February 2025, Binh Duong area is 440 VND/degree TSC; Binh Phuoc is 438-440 VND/degree TSC; Binh Thuan area is 420 VND/degree TSC.
Speaking at the conference, Mr. Tran Thanh Phung – Deputy General Director of VRG, said that regarding the floor price issue, 2024 is relatively suitable. However, there are many times when the floor price is higher than the market. However, the Group proactively manages the floor price to regulate inventory levels in units. For companies with large purchasing volumes such as Phuoc Hoa Rubber, a specialized purchasing department is needed and it is necessary to proactively conduct further research to bring about the best results.
“In 2025, units need to pay attention to the floor price, the Group’s leaders will proactively regulate so that the Group’s overall efficiency is the highest. Regarding purchasing, the regulations are specific, units balance purchasing costs to reduce to the lowest level to increase competitiveness with the market. I really hope that in 2025, all units will achieve and exceed the plan” – Mr. Tran Thanh Phung, said.
In his concluding remarks at the conference, Mr. Le Thanh Hung – General Director of VRG said that the Group’s leaders acknowledged and commended the results of the units in 2024 and shared the difficulties that other units experienced in the past year.
“With an average selling price of 44.5 million VND/ton in 2024, rubber revenue accounts for more than 82% of the total revenue of the Group. In 2025, the selling price is forecast to be high, the current average selling price in the Southeast region is over 50 million VND/ton. Therefore, units must promote exploitation, purchasing, and processing…” – Mr. Le Thanh Hung, said.
“In 2025, the Ministry of Finance assigned the Group a target of 8% revenue growth, this is an extremely heavy task, requiring units to focus on implementation. The Group’s exploited orchards are at their peak, so it is necessary to increase purchasing by over 100,000 tons/year. Purchasing is one of the important tasks of member units and the Group, so I suggest that companies increase purchasing to exploit the available resources of the unit, exploiting the full capacity of invested processing equipment. Promoting purchasing in 2025 and the following years will contribute to the completion of assigned tasks and production and business targets” – Mr. Le Thanh Hung directed.
At the conference, VRG awarded companies that completed the 2024 purchasing plan: Dau Tieng Rubber One Member Co., Ltd., Loc Ninh Rubber One Member Co., Ltd., Dong Nai Rubber Corporation Dong Nai, Phuoc Hoa Rubber Joint Stock Company, Ea H’leo Rubber One Member Co., Ltd., Binh Thuan Rubber One Member Co., Ltd., Quang Tri Rubber One Member Co., Ltd., Viet Lao Rubber Joint Stock Company.
