Multi-sector development is the new way forward for the Vietnam Rubber Group (VRG) as it becomes a pioneer in the agricultural sector changing its operation under the agro-industry and service structure.
In addition to latex processing, VRG is striving to raise annual outputs to 3 million sets of auto tyres and to 700 km of conveyer belts as well as step up production of rubber materials for other industries, said Tran Kien Quyet, the group’s CEO.
Last year, the group invested over 400 billion VND (25 million USD) in the Ben Thanh Rubber Conveyer Belt Factory in Ho Chi Minh City’s Cu Chi district and a wood processing factory in central Quang Tri province. Their products will be used for cement and coal sectors with prices two or three times cheaper than imported materials.
Quyet said that his group is promoting cooperation with the Da Nang Rubber Company, the Southern Rubber Company and India’s Aboll Company to invest in tyre production and raise the capacity of its four existing wood processing factories.
The group also plans to build a new 50,000 cu.m wood processing plant in the southern province of Binh Phuoc, he added.
VRG has also injected 300 million USD into other sectors such as engineering production, seaport management, transportation, construction materials, real estate, hotel services and tourism.
In order to address the problem that land available for domestic rubber plantation has been reduced, several VRG affiliates have intended to develop rubber growing and processing in Vietnam's neighbouring countries Laos and Cambodia.
Huynh Van Khiet, Director of the Dac Lac Rubber Company, an affiliate of VRG, said his company decided to build rubber processing plants in Laos and Cambodia because the two countries offer more agreeable land and climate conditions for the development of rubber trees.
Over the past few decades, rubber has been a valuable industrial tree in Vietnam. Latex is one of the country’s key export items with a turnover of nearly 1.3 billion USD in 2006 and the tree has made remarkable contributions to forest coverage, land erosion prevention and poverty reduction in many localities.
Vietnam is now the world’s sixth largest rubber producer and fourth exporter (after Thailand, Indonesia and Malaysia), with a total area of 450,000 ha and an annual output of 400,000 tonnes. China is the largest importer of Vietnam's rubber.
Vietnam’s rubber area and output are predicted to continue increasing in the coming years and may reach 700,000 ha and 600,000 tonnes respectively in 2010. Export turnover of this product is expected to remain at over 1 billion USD per year.
Source: VNE
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment