Vietnam Rubber Group proposes renewable energy investment in central province

The state-controlled Vietnam Rubber Group (VRG) is eyeing opportunities to study renewable energy development on rubber plantation land in the central province of Gia Lai, in line with a new resolution by local authorities.

At a recent meeting with provincial Party chief Ho Quoc Dung, VRG chairman Tran Cong Kha expressed his wish to receive support from the Gia Lai administration in its research and investment in renewable energy projects on rubber plantation land.

Resolution No. 19/NQ-HĐND, dated July 22, 2025, by the provincial People's Council features 52 land plots designated for bidding and selecting investors for renewable energy projects, including 13 solar power projects and 32 wind power projects.

Binh Dinh and Gia Lai were recently merged to form the new Gia Lai province which borders Dak Lak, Quang Ngai, Cambodia, and the East Sea.

Kha reported that the group has four member companies operating in Gia Lai, managing and cultivating 37,000 hectares of rubber trees across 30 communes and wards. These subsidiaries provide employment to 6,750 workers, 65% of whom are from ethnic minority groups.

In addition, VRG contributes around VND100 billion ($3.83 million) to the provincial budget each year and actively engages in social welfare programs, such as building charity houses and constructing roads.

The company leader expressed his hope for continued support from provincial authorities to accelerate site clearance and compensation procedures, and assistance regarding legal processes for infrastructure development at the Nam Pleiku Industrial Park, which is expected to be operational in Q1/2026.

Kha also proposed that member companies be allowed to register as lead investors for the Dak Doa Industrial Park (200 hectares) and the Nam Pleiku 2 Industrial Park (300 hectares), in accordance with approved plans. He urged the province to maintain land lease incentives for enterprises employing ethnic minority workers.

Speaking at the meeting, Gia Lai's Party chief Dung acknowledged and praised the VRG’s significant contributions to the province’s socio-economic development over the years.

He urged the group to strengthen its resources in the near future to expand its investment scale and diversify its business sectors in the province, especially those involving deep processing and value chain integration, to boost productivity, production efficiency, and job creation.

In the short term, Dung emphasized that VRG must proactively address difficulties and obstacles, accelerate land clearance, and complete infrastructure investment for the Nam Pleiku Industrial Park.

He also called on the group to review and convert some of its rubber plantation land for development of industrial parks and clusters to improve land use efficiency in alignment with the province’s planning.

Earlier, on July 9, Dung visited and worked with Chu Se Rubber Co., Ltd., a VRG subsidiary, to resolve challenges related to the Nam Pleiku Industrial Park.

VRG reported a net profit of VND1,184 billion ($45.5 million) in Q1/2025, 2.5 times higher than Q1/2024, which was largely driven by sustained high rubber latex prices amid rising global demand and tight supply.

The group, listed on the Ho Chi Minh Stock Exchange (HoSE) as GVR, generated VND5,676 billion ($218.26 million) in net revenue from sales and services in the period, up 24% year-on-year, according to its Q1 consolidated financial statement.

According to its 2024 annual report, the group set a 2025 revenue target of nearly VND30,500 billion ($1.17 billion), up 6% year-over-year, and an after-tax profit target of VND4,780 billion ($183.8 million), down 1%.

As of end-Q1, the corporation had achieved 18.6% of the year's revenue goal and 28% of the profit target. By the close of Q1, VRG’s total assets stood at approximately VND83,200 billion ($3.19 billion), largely unchanged from the beginning of the year.

GVR closed Friday at VND31,200 ($1.19) per share.