Data from GVR’s Q4 2024 consolidated financial statements reveals impressive results, with revenue, profit, and gross profit margin all reaching high levels over the past several years. Revenue stood at 9,300 billion VND, a 23% increase from the previous year, primarily driven by the core business of rubber tapping. There were also improvements in rubber products, wood processing, infrastructure, and real estate. Notably, gross profit nearly doubled, reaching over 3,000 billion VND, resulting in a gross profit margin improvement to 33% compared to 21% in the same period last year.

In addition to the rise in rubber prices, this performance was supported by reduced borrowing costs, lower selling expenses, and substantial profits from joint ventures and associates. As a result, net profit for the quarter reached nearly 2,000 billion VND, a 69% increase.

Vietnam’s rubber industry leader concluded its most successful year since 2012 – when rubber prices were at their peak – with revenue and profit exceeding 26,200 billion VND and 4,200 billion VND, respectively. This represents a 19% and 61% increase compared to the previous year.

GVR’s revenue and profit reach new heights after more than 10 years (in billion VND)

Source: Author’s compilation

However, GVR’s success remains largely dependent on its primary business of rubber cultivation and extraction. At the 2024 year-end conference, Mr. Do Huu Huy, Vice Chairman of the Commission for the Management of State Capital at Enterprises, acknowledged the challenges faced by other business areas such as industrial parks and hydropower, including legal issues, climate change, and competition. Operations in rubber wood and rubber industry faced significant difficulties and were not effective.

As of the end of 2024, the Group continued to maintain a large amount of assets in the bank, with approximately 20,000 billion VND in term deposits and cash equivalents. This is significant compared to the total short-term assets of over 27,700 billion VND. This strategy has provided stable interest income, with over 1,000 billion VND in interest earned over the past year.

Apart from financial success, GVR has made notable progress in its sustainable development strategy. The Group has obtained national and international sustainable forest management certificates for over 215,000 hectares of forest and implemented solutions to comply with the European Union’s Anti-Deforestation Regulations (EUDR). Currently, 34 member companies of GVR have developed sustainable forest management plans for a total area of approximately 287,000 hectares, of which 18 companies have achieved VFCS/PEFC-FM certification.

Regarding EUDR, a report by Phu Hung Securities (PHS) suggests that these policies are likely to disrupt and alter a portion of the natural rubber supply entering Europe, benefiting Vietnamese enterprises, especially those well-prepared with sustainability certifications. The report states, “This regulation will increase the demand for certified sources from production units serving the European market, especially from China’s manufacturing sector. This presents an opportunity for Vietnamese suppliers who have obtained sustainability certifications, as China currently accounts for 75%-80% of Vietnam’s rubber export value.”

Furthermore, as we move into 2025, the natural rubber industry is expected to remain volatile due to supply shortages. Speaking at the Rubber Industry Workshop earlier this month, Ms. Arusha Das, Head of Pricing, Data, and Research at Helixtap, a global commodities data and information platform, attributed this pressure on natural rubber supply to the impact of climate change and geopolitical factors.

In Southeast Asia, the world’s largest rubber-producing region, unusual weather patterns have caused an early leaf-fall season, significantly reducing output. Simultaneously, Côte d’Ivoire, a major rubber exporter in Africa, has imposed a ban on the export of cup lump (raw rubber material), further limiting global supply.

Mr. Le Thanh Hung, Chairman of the Vietnam Rubber Association (VRA) and General Director of GVR, also acknowledged the challenges ahead in 2025 due to climate change, emission reduction pressures, and stringent EUDR requirements. In the short term, rubber exporters are likely to increase sales before the regulations come into effect later this year.

Despite these challenges, the industry’s total export turnover is expected to reach 12.1 billion USD in 2025, representing a 10% growth compared to 2024.

Tu Kinh

– 18:18 31/01/2025