Vietnam Rubber Group targets 16.5% increase in rubber latex prices this year
Vietnam Rubber Group targets 16.5% increase in rubber latex prices this year
According to its fourth-quarter financial report for 2024, Vietnam Rubber recorded net revenue exceeding VNĐ9.3 trillion, a 23 per cent rise year-on-year.
Workers tap rubber trees to collect latex. — VNA/VNS Photo |
The Vietnam Rubber Group (GVR) has set an optimistic growth target for 2025, with the average selling price of rubber latex projected to reach VNĐ40.8 million (US$1,619) per tonne, marking a 16.5 per cent increase compared to the planned price for 2024.
According to its fourth-quarter financial report for 2024, Vietnam Rubber recorded net revenue exceeding VNĐ9.3 trillion, a 23 per cent rise year-on-year. Notably, the cost of goods sold grew at a slower pace, allowing the gross profit margin to reach 33 per cent.
The rubber business segment remained the group’s key revenue driver, contributing over VNĐ7.5 trillion. Other sectors, such as wood processing and industrial zone infrastructure development, also reported positive growth.
Fourth-quarter after-tax profit reached nearly VNĐ2.4 trillion, up almost 70 per cent from the previous year, driven by rising rubber latex prices and increased earnings from subsidiary companies. For the full year 2024, the group’s revenue totalled VNĐ26.25 trillion, with after-tax profit at VNĐ5.1 trillion, representing year-on-year increases of 19 per cent and 51 per cent, respectively.
These results exceeded the group’s annual targets, achieving 105 per cent of its revenue goal and 148 per cent of its profit target, marking the highest profit level since 2012.
Vietnam Rubber currently manages over 410,000 hectares of rubber plantations domestically and internationally, benefitting from the global uptrend in rubber prices due to supply shortages.
According to the General Department of Customs, the average export price of rubber in 2024 reached $1,701 per tonne, up 26 per cent year-on-year. Việt Nam’s total rubber exports stood at two million tonnes, generating $3.4 billion - an all-time high.
The Association of Natural Rubber Producing Countries (ANRPC) estimated a global shortfall of approximately 1.24 million tonnes of natural rubber in 2024. This supply deficit is expected to persist until 2028, with an annual shortage ranging from 600,000 to 800,000 tonnes.
Major rubber-producing nations, such as Thailand and Indonesia, are reducing their plantation areas. Thailand, which accounts for 33 per cent of global rubber production, plans to scale back its rubber cultivation over the next 20 years. Meanwhile, Indonesia is converting rubber-growing land into oil palm plantations and other higher-value crops.
China remains the largest market for Vietnamese rubber, accounting for 72 per cent of exports. In 2024, Việt Nam’s rubber exports to China reached nearly 1.5 million tonnes, valued at $2.4 billion, representing an 8.5 per cent decline in volume but an 11 per cent increase in value compared to 2023.
Based on the positive outlook for rubber prices, Vietnam Rubber has set a revenue target of nearly VNĐ27.5 trillion and an after-tax profit goal of VNĐ3.9 trillion for 2025. The group also plans to allocate VNĐ6.9 trillion for investment and development. —
