Rubber industry needs bounce

Tuesday, Aug 18, 2015 08:03

Viet Nam Rubber Group expects to earn a total revenue of VND21.5 trillion ($986.23 million) this year. — File Photo

HA NOI (Biz Hub) — Deputy Prime Minister Vu Van Ninh urged Viet Nam Rubber Group to come up with a strategy to boost the rubber industry's development rather than focusing purely on rubber plantations.

Ninh was speaking at a meeting yesterday about the group's progress in restructuring in HCM City.

Ninh said the strategy should aim to safeguard the domestic rubber industry from fluctuations in global prices of rubber and latex which have been witnessing a steep decline since 2012.

"Viet Nam Rubber Group and relevant ministries need to study a development strategy for the rubber industry," Ninh said, adding that the sector must seek a way to reduce dependence on prices.

Ninh said priorities should be fixed to enhance the competitiveness of products, improve productivity and efficiency. The industry must apply advanced technology in production.

"Those tasks are difficult but are must-dos for sustainable development," he said.

Regarding the group's restructuring, Ninh asked the group to determine its member companies' value within the third quarter and complete the privatisation process this year.

The group said the value of five member companies, namely, Binh Long, Phu Rieng, Loc Ninh, Ba Ria and Tan Bien, would soon be disclosed.

The group also collected VND1.188 trillion (US$54.5 million) from capital withdrawal out of non-core businesses by the end of the second quarter of this year, VND141 billion ($6.46 million) higher than book value.

However, the group has been encountering difficulties in withdrawing capital from investments in irrigation, industrial zones and hydroelectricity, worth totally VND700 billion ($32.11 million).

Any difficulties must be reported to the government for solutions, Ninh said, adding that divestment must follow a roadmap to ensure the highest capital efficiency.

Viet Nam Rubber Group expected to earn a total revenue of VND21.5 trillion ($986.23 million) this year, including revenue from wood processing and leasing industrial zones. — VNS

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