Vietnam Rubber Group’s 2024 net profit hits 12-year record high on surging rubber price

State-controlled Vietnam Rubber Group - JSC earned VND4.2 trillion ($167.4 million) in net profit in 2024, up 61% year-on-year and the highest figure since 2012.

According to the company’s 2024 earnings report, Vietnam Rubber Group (HoSE: GVR) posted net revenue of VND26.2 trillion ($1.04 billion) last year, up 19% from 2023.

This growth was primarily driven by high selling prices for GVR rubber, which Vietcap Securities estimated to have averaged VND40 million ($1,590) per ton last year.

As of the end of 2024, GVR held VND20 trillion ($797.45 million) in bank deposits, generating approximately VND1 trillion ($39.87 million) in interest income.

Beyond its strong business performance, GVR has also made significant progress in its sustainable development strategy. The company has obtained national and international sustainable forest management certifications for over 215,000 hectares of forest and has implemented measures to comply with the European Union Deforestation Regulation (EUDR).

So far, 34 GVR subsidiaries have developed sustainable forest management plans covering approximately 287,000 hectares, with 18 achieving VFCS/PEFC-FM certification.

Phu Hung Securities (PHS) noted that EUDR regulations are expected to disrupt and partially reshape the supply of natural rubber to Europe, creating favorable conditions for Vietnamese enterprises, especially those well-prepared with sustainability certifications.

Le Thanh Hung, chairman of the Vietnam Rubber Association (VRA) and general director of GVR, warned that 2025 could bring significant challenges due to climate change, increasing pressure to reduce emissions, and stringent EUDR requirements. In the short term, local rubber exporters are expected to accelerate sales before the new regulations take effect at the end of this year.

Despite these challenges, Vietnam’s rubber exports are projected to rise 10% year-on-year to $12.1 billion in 2025, Hung forecast.

GVR shares closed January 24, the last trading session before the country's nine-day Lunar New Year holiday, at VND28,800 ($1.15) apiece.

The state currently owns a nearly 97% stake at GVR.