The Vietnam Rubber Group (GVR) targets to earn revenue and profit of 26.9 trillion VND (1.17 billion USD) and 4.56 trillion VND this year, respectively.

Workers at a processing plant of the Vietnam Rubber Group
(Photo courtesy of the group)

The Vietnam Rubber Group (GVR) targets to earn revenue and profit of 26.9 trillion VND (1.17 billion USD) and 4.56 trillion VND this year, respectively.

It plans to spend 2.4 trillion VND to pay 2020's pidend at a rate of 6 percent.

This year, the company plans to spend about 2.63 trillion VND on investment, of which about 578 billion VND is invested in basic construction projects and the remaining 2.05 trillion VND is for long-term financial investment.

The information was released at the annual general meeting of shareholders held late June.

Responding to shareholders about the roadmap for land conversion in the near future, the management board said that GVR’s main area in the 2021-2025 period will be industrial zone development, which is expected to bring more benefits and profits for the group.

GVR will also continue the traditional business of exploiting and selling rubber latex and processing and manufacturing industrial wood products.

In the long term, the conversion of rubber plantation land into industrial parks can help GVR become one of the largest industrial developers in the southern region besides Becamex, Tin Nghia, Sonadezi and VSIP.

Speaking with shareholders about this new segment, the management board said that the advantage of GVR was owning an abundant rubber land fund, mainly in the provinces of Dong Nai and Binh Duong, while the land fund for industrial parks in these areas is inadequate.

It is estimated that the area for lease of industrial land is expected to achieve a 5-year annual compound growth rate (CAGR) of 17 percent, while the current main business of GVR - rubber latex production - only achieves a 5-year CAGR of 3.6 percent.

GVR will also sell about 2,686 hectares of industrial land in the next five years, an increase of 76 percent compared to the total sales of industrial land in the 2016-2020 period.

By the end of 2020, GVR had managed a domestic rubber area of roughly 87,000 hectares.

Last year, the industrial zone segment contributes 1.52 trillion VND in revenue and 821 billion VND in profit./.