A worker exploits rubber latex. The Vietnam Rubber Association is in the process of executing a plan to build a brand name for Vietnamese natural rubber and rubber products to nurture trust among consumers. — Photo baodautu.vn

HA NOI (Biz Hub) — The Vietnam Rubber Association is in the process of executing a plan to build a brand name for Vietnamese natural rubber and rubber products to nurture trust among consumers.

In 2014 the VRA created quality standards for Viet Nam Rubber to certify products made by companies committed to meeting certain the standards.

This was the first step in the plan to develop the Viet Nam Rubber brand, according to the VRA.

By 2020 all products made by VRA members would be certified based on the Viet Nam Rubber quality standards.

Viet Nam is the world's third largest rubber producer and rubber accounted for 1.2 per cent of the country's exports last year.

However, according to Tran Thi Thuy Hoa, the chief of the VRA office, the Viet Nam rubber brand is not well established and its rubber quality is inconsistent.

"Only a few large businesses have the capability to build their own brands, while the national rubber brand does not have a strong position among domestic and international customers."

Thus, the creation of a Viet Nam rubber brand is imperative, she added.

The VRA is registering Viet Nam Rubber quality standards in target markets.

VN rubber matches world's best

Vietnamese rubber matches global standards, Tran Ngoc Thuan, general director of the Viet Nam Rubber Group (VRG).

Viet Nam has some very good products with competitive prices, he said.

But it requires an agency to supervise the quality of natural rubber, he said.

"The Ministry of Agricultural and Rural Development is partnering with VRA and VRG to develop a strategy to control the quality of rubber and the national rubber brand."

Govt orders VRG equitisation

The Government has instructed the Ministry of Agriculture and Rural Development to equitise VRG after the latter had, in September, submitted a proposal for it.

After the equitisation in 2016 the Government will retain a 75 per cent stake.

The Government also ordered VRG to equitise its subsidiaries Ba Ria Rubber Limited Company and Tan Bien Rubber Limited Company. The company will retain more than 65 per cent ownership in both.

Last year VRG reported net profit of VND2.3 trillion ($102 million) on revenues of VND17.3 trillion (US$767.3 million).

It has already equitised many of its subsidiaries like the Saigon – Ha Noi Commercial Joint Stock bank and the Sai Gon – Ha Noi securities JSC. —VNS