Quang Nam rubber sets target of changes for development

On February 17, Quang Nam Rubber Company held a conference to plan for the year 2022 and to analyze production and business in 2021.

According to Mr. Thai Bao Tri, general director of Quang Nam Rubber Company, the unit faced several obstacles in 2021, including a lack of money, the impacts of Covid-19, harsh weather, and the aftermath of 2020's storm no.9, which reduced the area, density, and quality of rubber gardens.

Due to the company's inefficient production and business outcomes, laborers' wages are low, making it difficult to motivate them to work and recruit more qualified workers.

Currently, the company manages almost 5,900 hectares of rubber plantations spread throughout six districts and 18 communes. Which includes almost 2,170 hectares of rubber for basic construction, over 2,700 hectares for exploitation, and over 950 hectares liquidated due to storms and handed to the public. The majority of the territory is in tough terrain, with steep mountainous terrain interspersed with rubber fields, acacia gardens, and other orchards, making management challenges.

"Despite the aforementioned problems, by the end of 2021, the unit had finished plants' basic construction, assuring continued development, and exploited 2,483 tons of output latex, exceeding the parent group's aim of 2,480 tons. The firm continues to provide a steady pay, income, and quality of life for its staff and employees, fully implements worker rules and regimes and adheres to state commitments," Mr. Tri said.

"Quang Nam province supports the Vietnam Rubber Industry Group's restructuring strategy, as well as that of the Quang Nam Rubber Company, and expects that the program will be implemented soon. There are other choices, including growing rubber trees alongside other sorts of trees. This would boost the value of production and the pay of employees," stated Mr. Ho Quang Buu, the provincial authority of Quang Nam.

Tri estimated that the price of latex will fluctuate in 2022, and the market would be tough. The company's focus must be on cost-cutting measures, reduced investment, and cost reduction to lower pricing. Assure that the garden develops well, is productive, and produces a sufficient amount of food. Identifying match tasks and solutions to spur a new stage of development, exceed the Group's aims and plans, and assure workers' income and stability of life.

"To accomplish these goals in 2022, the corporation must first address fundamental challenges, such as determining the causes and limitations of 2021 and proposing strategies to solve them; and making efforts to cut expenses associated with latex exploitation, shipping, processing, and management.

Additionally, it is critical to continue developing a strategy for restructuring labor and orchards, reorganizing the company's organizational structure, increasing worker income, and replicating the intercropping model. Simultaneously, continue to support technological innovation projects, multiplying advanced examples based on productivity, quality, and efficiency...", Mr. Tri said.

Mr. Ho Quang Buu, the provincial authority of Quang Nam, stated that during the difficult period of the Covid-19 epidemic, the price of latex in the world market plummets, but fortunately, the firm continues to run and ensures income for laborers. Quang Nam Rubber Company now manages about 6,000 hectares, but the income was just VND 127 billion in 2021, which is still low and not commensurate with its potential. As a result, it is important to increase efficiency even more in the future.

Le Thanh Tu, Deputy General Director of the Vietnam Rubber Industry Group, stated that storm No. 9 in 2020 had a significant impact on the region of Quang Nam Rubber Company's orchard. By 2020, the unit's output had achieved 60% of the target, but by 2021, it had met and exceeded the target. This is an incredible effort on the part of the Company's leadership team, executives, workers, and contractors.

"2022 would present several challenges, but we will conquer them and rise to new heights with the company's efforts and the local support. Over the years, we will continue to promote positive traditional value, maximizing the potential of land resources, increasing salaries for authorities and employees, and contributing to the local community's growth...", Mr. Tu explained.