VIET NAM RUBBER GROUP - JOINT STOCK COMPANY

VIET NAM RUBBER GROUP - JOINT STOCK COMPANY (TẬP ĐOÀN CÔNG NGHIỆP CAO SU VIỆT NAM - CÔNG TY CỔ PHẦN): A GENERAL ANALYSIS BY VANGUARD BUSINESS INFORMATION (VBI)

VIET NAM RUBBER GROUP - JOINT STOCK COMPANY (VRG) is one of Vietnam’s largest state-owned enterprises in the rubber industry, specializing in rubber tree cultivation, latex processing, and rubber product trading. The company was established on June 30, 2010, and is headquartered at No. 236, Nam Ky Khoi Nghia Street, Vo Thi Sau Ward, District 3, Ho Chi Minh City, Vietnam. It operates under Business ID (TIN) 0301266564 and is listed on the Ho Chi Minh Stock Exchange (HOSE) under the ticker symbol GVR.

Financial Performance and Market Position

As of 2024, VRG reported total assets of USD 3.43 billion, marking a 7.02% increase from the previous year. The company’s total sales reached USD 1.08 billion, reflecting an 18.59% growth, indicating a strong recovery after previous revenue declines. Net profit surged by 51.31% to USD 209.67 million, a significant improvement compared to the 29.79% drop in 2023, highlighting efficient cost management and market expansion.

The company’s equity increased by 6.6% to USD 2.41 billion, reinforcing financial stability and investment capacity. With a workforce of 80,000 employees, VRG remains one of Vietnam’s largest employers in the agricultural and industrial sectors, supporting both domestic and international rubber markets.

Key Strengths of the Company

• Strong Market Recovery – After facing sales and profit declines in previous years, VRG experienced significant revenue and profit growth in 2024, demonstrating resilient demand and operational improvements.
• State-Owned Stability – With 96.77% ownership by the Commission for the Management of State Capital at Enterprises, the company benefits from government support, financial backing, and long-term policy alignment.
• Large-Scale Operations – The company’s extensive rubber plantations and manufacturing facilities allow for a stable supply of raw materials and cost-effective production.
• Diversified Business Portfolio – Beyond rubber production, VRG is involved in construction material trading, water treatment, IT services, and agricultural processing, reducing its dependence on a single industry.

Challenges and Market Risks

• Volatility in Rubber Prices – The company is highly dependent on global rubber demand and price fluctuations, which can impact profitability and revenue stability.
• Competitive Pressure – Vietnam’s rubber industry is becoming increasingly competitive, with private and foreign firms expanding market share.
• Environmental and Regulatory Risks – Changes in deforestation policies, land use regulations, and sustainability requirements could affect plantation operations.
• Market Dependence on Exports – A large portion of VRG’s revenue comes from rubber exports, making the company vulnerable to international trade policies and demand shifts.

The Role of General Company Reports in Business Decision-Making

For investors, suppliers, and industry analysts, understanding a company’s financial trends, operational risks, and market positioning is crucial. A general company report provides transparency into financial health, investment opportunities, and long-term business strategies, supporting more informed decision-making.

VBI’s Contribution to Market Insights

VANGUARD BUSINESS INFORMATION (VBI) delivers comprehensive financial and industry reports, helping businesses and investors assess performance trends, market risks, and growth potential. For companies like VIET NAM RUBBER GROUP - JOINT STOCK COMPANY, these reports offer critical insights into operational efficiency, revenue fluctuations, and sector-specific challenges, aiding in strategic planning and risk management.