Vietnam Rubber Group to reduce output

Tuesday, Nov 27, 2018 08:54

A worker harvests rubber latex at Cu Mgar Rubber Company in the Tay Nguyen (Central Highlands) province of Dak Lak. — VNA/VNS Photo Duong Giang

The Vietnam Rubber Group (VRG) plans to reduce its output due to a sharp decrease in the price of rubber in the market after it is completely transferred to the Committee for State Capital Management (CMSC).

A report from the Ministry of Agriculture and Rural Development showed that Viet Nam exported 1.06 million tonnes of rubber in the first nine months of this year, worth US$1.45 billion, increasing 10.9 per cent in volume but decreasing 10 per cent in value in comparison with the same period last year.

According to VRG Chairman Vo Sy Luc, supply was exceeding demand, causing prices to fall.

The price of rubber this year was about 20 per cent lower than that in 2017, but the group was still aiming to fulfill its target on revenue, profit and dividends, said Luc.

VRG officially moved to operate as a joint stock company in June this year.

VRG is one of 19 State-owned enterprises from ministries and Government agencies that will be transferred to the CMSC. They include Vietnam National Oil and Gas Group (PetroVietnam or PVN), Vietnam Electricity (EVN), Vietnam National Coal and Mineral Industries Group (Vinacomin or TKV), Vietnam Posts and Telecommunications Group (VNPT), Vietnam Airlines and Airports Corporation of Vietnam (ACV).

The 19 SOEs have a total VND2.3 quadrillion ($102.2 billion) worth of assets, including VND1 quadrillion worth of State capital. — VNS

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