Rubber firms eyeing buoyant performance thanks to favourable export

Despite a sharp rise in business performance, rubber firms need more to achieve sustainable growth

The latest figures from the Ministry of Industry and Trade’s Export-Import Agency show that Vietnam exported 195,000 tonnes of rubber, generating $321 million in total export value in September, up 2.8 per cent in volume and 3.1 per cent in value compared to August. Compared to September 2020, these figures shed 5.1 per cent in volume but showing a 21.2 per cent hike in value.

With September export price averaging $1,646 per tonne, 0.3 per cent more than in August and 22.7 per cent higher than in the year prior, Vietnam counted an estimated $2.17 billion in value from exporting 1.3 million tonnes of rubber in the first nine months of 2021, up 17.1 per cent in volume and 52.7 per cent in value compared to the same period in 2020.

The favourable market situation has been instrumental for many rubber firms to post upbeat business results in the year to date.

Accordingly, Hoa Binh Rubber JSC raked in VND126 billion ($5.48 million) in total revenue and VND2.8 billion ($121,740) in pre-tax profit, equal to 72 and 282 per cent of full-year plan in the first nine months this year.

Meanwhile, Phuoc Hoa Rubber JSC counted VND281.5 billion ($12.24 million) in net revenue from sales and services in the third quarter this year, up 22.7 per cent on-year; and posted VND38 billion ($1.65 million) in accrued profit during the period, up 192 per cent on-year.

Generally, the company reaped VND119 billion ($5.17 million) in net profit from business activities in the first three quarters, a 3.5-fold increase on-year.

According to its third-quarter financial report, Ba Ria Rubber JSC earned nearly VND34 billion ($1.5 million) in after-tax profit during the period, 3.1 times the figure the company posted in the corresponding period in 2020.

In the first three quarters, the company witnessed a 21 per cent hike to reach VND243 billion ($10.57 million) in net revenue and 187 per cent jump in after-tax profit to surpass VND68 billion ($2.96 million).

Earlier, in the first half, state-owned Vietnam Rubber Group saw a sharp growth in profit, hitting VND2.282 trillion ($99.2 million) compared to just VND841 billion ($36.57 million) in the same period of 2020. That was because its member units had maintained stable production in the new normal, paired with high and stable rubber latex prices.

According to the latest report of the Association of Natural Ruber Producing Countries (ANRPC), the demand for natural rubber in 2021 is expected to hike 9.3 per cent worldwide to 14.1 million tonnes compared to 2020, attributable to higher demand from China, India, Thailand, and Vietnam during the year.

The global natural rubber output is expected to reach 13.86 million tonnes in 2021, up 2 per cent on-year, based on preliminary estimations by ANRPC member countries.