Throughout nearly five decades of development, Dong Nai Rubber Corporation (DONARUCO) has constantly striven to make steady growth and gradually affirmed its position as an industry leader in the region. Notably, the year 2022 marked a significant milestone on its effortful journey to bring DONARUCO up to par with industry leaders and strongly motivate it to confidently and firmly enter a new stage of development. Mr. Do Minh Tuan, General Director of DONARUCO, gives us an exclusive interview about this journey.
VRG leaders award the emulation flag to the employees of Dong Nai Rubber Corporation
Could you brief us on the important development milestones of DONARUCO?
Right after the Great Spring Victory in 1975, the Standing Board of the Southeast Party Committee advocated restoring rubber production, creating jobs and stabilizing livelihoods for rubber workers, and building a socialist rubber production area. To carry out this policy, State-owned Dong Nai Rubber Company was established on June 2, 1975 to take over 12 rubber plantations owned by four French capitalist companies (with a total area of 21,000 ha of rubber) in Dong Nai province. This was considered a historic milestone for Dong Nai Rubber Corporation and was chosen as its birthday. This was also the time that its employees restarted production in the new position as the owners of the country and the masters of their own work.
However, at that time, the company faced a grave situation due to exhausted plantations, depleted supplies and equipment and an exhausted labor force as a result of war consequences. Before this context, the company leadership promptly proposed many solutions to push the traditional revolutionary strength of rubber workers, persistently overcome existing difficulties to stabilize operations, gradually rebuild plantations and facilities, and take care of employees’ livelihoods.
In order for products to meet domestic and foreign market requirements, DONARUCO developed a sustainable forest management plan for all rubber plantations, obtained VFCS/PEFC - FM Sustainability Certification from the international agency GFA for 11,035 ha (34.8% of total rubber area) and PEFC Chain of Custody Certificate from SGS for all three affiliated factories, with a combined capacity of 40,000 tons a year. Hence, despite a continuous decline in sales and selling prices, DONARUCO managed to sign long-term contracts with many customers in Europe, the United States, Japan, China and other countries, while focusing on finding domestic partners to boost domestic consumption.
In 2022, despite facing numerous challenges, DONARUCO achieved many outstanding business results, especially in the agricultural sector. Specifically, all 10 plantations made an average productivity of over two tons per hectare, marking the first entry into VRG’s 2 Tons Club toward sustainability. Labor productivity was 12 tons per person, 0.9 tons higher than in 2021, becoming one of the best performers in the industry. All revenue, profit and employee income results met and exceeded their targets. DONARUCO continued to be recognized as one of the Top 100 sustainable enterprises. All products met TCVN national standards and were recertified with the “Vietnamese rubber” trademark by the Vietnam Rubber Association. DONARUCO successfully test-produced high value-added rubber latex products, for the market in the coming time.
To date, DONARUCO has experienced a 48-year journey of development with many difficulties and challenges. But in that journey, the blusterous spirit and active approach, with bravery and resilience, was always upheld. In recognition of its achievements, the Party and State awarded the titles “Hero of the People's Armed Forces”, “Labor Hero”, “Independence Order” and “First Class Labor Order” and many other exalted trophies to Dong Nai Rubber Corporation.
Digital transformation and investment in production lines, equipment and human resources are always key to the success of every company. Would you mind sharing more about these?
DONARUCO defines digital transformation as a central, cross-cutting, and strategically important task and as a tool to carry out comprehensive innovation in all business fields. Over the years, DONARUCO has embarked on digital transformation in a consistent manner and determined that it is not only an investment in technology infrastructure and machinery, but also requires a transformational mindset. Therefore, the corporation regularly organizes communications and training sessions on digital transformation for employees.
In 2022, one of the decisive factors for the success of DONARUCO was installing modern machinery and mechanical equipment to manufacture a set of motorized equipment for rubber farms to enhance productivity, yield and quality while reducing production costs. To successfully carry out its targets and tasks in 2023 and the following years, DONARUCO will continue to promote mechanization and automation in rubber plantations, especially in the production stage boosted by manufacturing and operation of tapping robots. The corporation will also conduct research and use remote sensing technology to check and treat plant diseases, and assist in land measurement and changes. Particularly, in processing and consumption, DONARUCO will continue to invest in new machinery and equipment, apply new technological advancements to product diversification; invest in automated packaging and transportation lines; and shift to using gas and electricity for production from clean biomass energy sources and solar energy systems installed in factories. In addition, the corporation will actively review all the land funds, closely coordinate with local authorities to transform production structures into commercial and service development, invest in infrastructure in industrial zones, and implement projects in accordance with the province’s master plans.
Could you tell us about DORUCO’s social security and corporate culture?
DONARUCO is a large company of VRG. We built the development strategy based on three pillars: economy, society and environment. Apart from business, the corporation also focuses on fulfilling its responsibilities and obligations in the province with practical activities. On average, DONARUCO annually pays over VND200 billion to the State Budget. In 2022, this figure jumped to VND364 billion. Furthermore, the corporation also actively takes part in social security, regularly visits and gives gifts to policy-beneficiary families and Vietnamese heroic mothers on public holidays and Tet. It also joins activities launched by local agencies and authorities.
Moreover, to encourage employees who have united to actively engage in production to fulfill their tasks, during the low season, DONARUCO has organized excursions for 450 employees with a total expense of more than VND15 billion.
Given the decline of the rubber industry in recent years, DONARUCO appreciates its employees even more because many come from poor rural areas across the country. They came to this land and chose DONARUCO to place their faith and hope on. Therefore, we are committed to standing by them and helping them lead a better life.
On the occasion of the 60th anniversary of VCCI, what message would you like to deliver?
In the past time, VCCI has actively supported companies, including DONARUCO, in trade and investment promotion, science-technology cooperation and other business activities of the business community. Dong Nai Rubber Corporation was honored to be voted among the Top 100 Sustainable Businesses by VCCI from 2019 to 2022. In 2021, it was voted in the Top 10 Sustainable Business and Top 5 Companies for excellent respect for and promotion of children's rights in business.
We expect that, in the coming time, VCCI will further help companies to access development resources and accompany them in trade promotion and investment connections.
Thank you very much!
By Cong Luan, Vietnam Business Forum
Vietnamese
October 2024
Hanoi