Market and product

The Vietnam Rubber Association is in the process of executing a plan to build a brand name for Vietnamese natural rubber and rubber products to nurture trust among consumers. In 2014, the VRA created quality standards for Vietnam Rubber to certify products made by companies committed to meeting certain standards. This was the first step in the plan to develop the Vietnam Rubber brand, according to the VRA.

By 2020, all products made by VRA members would be certified based on the Vietnam Rubber quality standards. Vietnam is the world's third largest rubber producer, and rubber accounted for 1.2 percent of the country's exports last year. However, according to Tran Thi Thuy Hoa, the chief of the VRA office, the Vietnam rubber brand is not well established and its rubber quality is inconsistent. "Only a few large businesses have the capability to build their own brands, while the national rubber brand does not have a strong position among domestic and international customers." Thus, the creation of a Vietnam rubber brand is imperative, she added.

The VRA is registering Vietnam Rubber quality standards in target markets. Vietnamese rubber matches global standards, according to Tran Ngoc Thuan, general director of the Vietnam Rubber Group (VRG). Vietnam has some very good products with competitive prices, he said. But it requires an agency to supervise the quality of natural rubber, he said. "The Ministry of Agricultural and Rural Development is partnering with VRA and VRG to develop a strategy to control the quality of rubber and the national rubber brand." The Government has instructed the Ministry of Agriculture and Rural Development to equitize VRG after the latter had, in September, submitted a proposal for it. After the equitization in 2016, the government will retain a 75 percent stake. The government also ordered VRG to equitize its subsidiaries Ba Ria Rubber Limited Company and Tan Bien Rubber Limited Company. The company will retain more than 65 percent ownership in both. Last year, VRG reported net profit of VND 2.3 trillion ($102 million) on revenues of VND 17.3 trillion ($767.3 million). It has already equitized many of its subsidiaries like the Saigon – Ha Noi Commercial Joint Stock bank and the Sai Gon – Ha Noi securities JSC.