Binh Duong Rubber Joint Stock Company Effective and Sustainable Steps

Rubber prices remain low, the COVID-19 epidemic has a direct impact on the real estate business, but thanks to its acumen in operating production and business and boldness in investment and development, Binh Duong Rubber Joint Stock Company still maintains quite effective operations, ensuring jobs and income for employees, and dividends for shareholders.

From a reputable rubber producer

Binh Duong Rubber Joint Stock Company, formerly known as Cay Truong Farm established by Song Be Provincial People's Committee in 1977, has undergone various development stages and changed its name many times; since 2009 it has been changed to Binh Duong Rubber Limited Company under the decision of Binh Duong Provincial People's Committee. Since 2015, the Company has operated under the model of a joint stock company called Binh Duong Rubber Joint Stock Company.

Currently, Binh Duong Rubber Joint Stock Company is managing and exploiting more than 1,500 hectares of rubber with 4 production teams. The Company’s rubber plantations are assessed to have high productivity, the annual average output of latex exploited and processed by the Company is more than 7,500 tons, the output of SVR 10 latex reaches 357 tons and SVR3L latex reaches more than 5,200 tons.

Binh Duong Rubber Joint Stock Company owns a rubber latex processing factory with a capacity of 6,000 tons / year, providing the market with natural rubber products such as: SVR 10, SVR 3L with high quality and nice colors. Thanks to that, Binh Duong rubber brand has created a reputation among domestic and foreign customers.

To a potential real estate brand

Mr. Tran Quyet Thang, General Director of Binh Duong Rubber Joint Stock Company shared, the company's tradition was a rubber planting, processing and exporting enterprise. Currently, the rubber area of the Company is still quite large and it is still an important business segment. However, the fact that rubber latex prices have remained low for many consecutive years has greatly affected the business efficiency and the life of employees of the Company.

Facing this situation, after the equitization, the Board of Management and Board of Directors of Binh Duong Rubber Joint Stock Company decided to expand their business operations to a number of areas where the Company has potential, advantages and in accordance with the development orientation of Binh Duong province which are: real estate investment and business, construction, industrial park development.

It has not been a long time since it joined the real estate market, but Binh Duong Rubber Joint Stock Company has quickly made its mark through the Worker Housing - Trade - Service Project in 5D residential area, in Lai Uyen commune, Bau Bang. The project has been implemented since 2017 and has brought high economic efficiency from selling and leasing.

Thanks to the successful development of the 5D residential project and the consolidation of the rubber segment, the Company recorded a breakthrough in revenue and profit in 2017: its profit reached more than VND 31 billion, after deducting accumulated loss of VND 19 billion, the remaining profit after tax was more than VND 9.7 billion. This is also the first year after many years that the Company started to have profits and dividends for its shareholders (5%). After that, in 2018, the Company's after-tax profit reached more than VND 19.5 billion and in 2019, it was VND 18.7 billion.

"In the context of low rubber prices, most of the profits come from the real estate business," said Mr. Tran Quyet Thang.

Owning a large land fund located in the new urban and industrial development planning area of Binh Duong province and standing next to it is Becamex Group (a company with a lot of experience in real estate development and industrial parks), the Board of Management and Board of Directors are experienced and responsive, while the development opportunity of Binh Duong Rubber Joint Stock Company in residential real estate and industrial real estate is very big.

Ensuring the interests of shareholders and employees

Thanks to effective business, the interests of shareholders are guaranteed. In recent years, the Company has annually paid a dividend at 6-7%. Their employees' incomes have also been improved. The company currently has about 450 people, with an average income of 8.5 million / person / month.

In particular, the Company always pays attention to employees’ spiritual life and creates conditions for Party and Union activities, facilitating conditions for professional improvement, attachment and promotion.

In addition, thanks to the flourishing business results, the Company also accompanies the local implementation of social security policies in the area with the amount of hundreds of millions VND/year.

Source:  Vietnam Business Forum