The Vietnam Rubber Group (VRG) approved the equitisation plan after the unexpected Employee Representation Conference held on September 25 in Ho Chi Minh City.
According to this plan, VRG will have a chartered capital of VND40 trillion (nearly US$1.8 billion). The state will holds 75% shares, nearly 12% shares will be sold to strategic investors and another 12% will be auctioned publicly.
It is expected that the offering of shares will bring revenue of 12,834 billion (nealy US$565 million) for VRG.
VRG had owned a 415,000 hectares-area of rubber by the end of 2015. Of this area, 152,000 hectares were under cultivation and 243,000 hectares were under being taken care of.
In 2010, VRG invested much money in expanding the area of rubber trees. The price of rubber now is only from 60% to 70% of 2010 prices.
In addition, from the disposal of rubber wood, VRG is operating 7 export wood furniture factories, 1 wood processing plant and 6 rubber wood pellet factories.
In the industrial field, VRG is managing 13 industrial parks with an area of 6,000 hectares for lease.
Last year, VRG reached total revenue of VND15,693 billion (more than US$690 million) and net profit of VND2,808 billion (US$about 123.5). In the first half of 2017, VRG's revenue reached VND 8,115 billion (nearly US$357 million).
