In 2024, the Vietnam Rubber Group (VRG) has achieved many successes in cooperation, investment, and development of the rubber industry in Laos, achieving profits exceeding the plan by 80%. From January 9-10, at the invitation of Prime Minister of the Lao People's Democratic Republic Sonexay Siphandone, Prime Minister Pham Minh Chinh and the Vietnamese high-ranking delegation visited the Lao People's Democratic Republic and co-chaired the 47th meeting of the Vietnam - Laos Intergovernmental Committee.
Prime Minister Pham Minh Chinh and Lao Prime Minister co-chaired the Vietnam - Laos Investment Cooperation Conference with the theme "Promoting Sustainable Development and Prosperity". Photo: VNA. On this occasion, on the afternoon of January 9, the two Prime Ministers co-chaired the Vietnam - Laos Investment Cooperation Conference. Also attending the Conference were Minister of Planning and Investment Nguyen Chi Dung, Chairman of the Vietnam - Laos Cooperation Committee; Minister of Planning and Investment, Chairman of the Laos - Vietnam Cooperation Committee Phet Phomphiphac;
Minister of Industry and Trade Nguyen Hong Dien and many other Ministers, leaders of ministries, sectors, localities and enterprises of the two countries. The Conference was jointly organized by the Vietnamese Ministry of Planning and Investment and the Lao Ministry of Planning and Investment with the theme "Promoting Sustainable Development and Prosperity". This is an important event for Vietnam and Laos to review and evaluate the results of investment cooperation in 2024 and discuss solutions to implement the 2025 Cooperation Plan, which was approved by the two governments on the morning of January 9 after the meeting. At the conference, Mr. Tran Cong Kha, Chairman of the Board of Directors,
Vietnam Rubber Industry Group (VRG), gave a speech on the situation of cooperation, investment and rubber development in Laos.
Mr. Tran Cong Kha, Chairman of the Board of Directors, Vietnam Rubber Industry Group (VRG) spoke at the Vietnam - Laos Investment Cooperation Conference. Profit exceeded the plan by 180% According to Mr. Kha, VRG has currently established 6 companies in Laos in 5 border provinces between the Lao PDR and Vietnam, including 5 subsidiaries and 1 associated company. VRG's total registered foreign investment capital is 254.54 million USD. In 2024, VRG's total rubber growing area in Laos is 26,644.66 hectares, of which the exploited area is 23,239.02 hectares. The Group has invested in 3 rubber processing factories with a total capacity of 34,000 tons/year. Mr. Kha informed that VRG's exploited output in Laos in 2024 will reach 34,592 tons, completing 93% of the plan. Total revenue in 2024 is estimated at 66.3 million USD, exceeding the plan by 104%. The total number of employees in VRG's 2024 projects in Laos is 5,528, including 763 Vietnamese workers and 4,765 Lao workers, with an average salary of 268.63 USD/person/month. Notably, according to Mr. Kha, VRG's after-tax profit in 2024 in Laos is estimated at 14.85 million USD, completing 180% of the plan. The export value in 2024 in Laos reached 64.72 million USD, 5% higher than the plan. The amount paid to the Lao budget in 2024 reached 5.23 million USD, completing 137% of the plan. Mr. Kha also named two projects, the Vietnam-Laos Rubber Joint Stock Company and the Quasa Geruco Joint Stock Company, which have made profits and have paid dividends and transferred money back to the country, with a cumulative total of 26.60 million USD as of December 31, 2024. Meanwhile, the remaining projects of VRG are continuing to invest, and according to Mr. Kha, they are expected to make profits in the next few years. In addition, VRG has actively contributed to social activities and sustainable development in the project area. The total value of support for infrastructure construction and social welfare such as roads, schools, medical stations, clean water and disaster relief accumulated to 2024 is 2.85 million USD. According to Mr. Kha, these contributions not only promote socio-economic development but also help improve people's lives, gradually changing the nomadic lifestyle, shifting to sedentary farming, settlement and large-scale commodity production.
Proposal to accelerate land lease contract extension In his speech, Mr. Kha shared some progress in extending the land lease contract to 50 years of Quasa - Geruco Joint Stock Company and Dau Tieng Viet Lao Rubber Joint Stock Company. In which, Quasa Geruco Joint Stock Company requested to extend the land lease term from 30 years to 50 years, with a total area of 5,880.69 hectares. Similarly, Dau Tieng Viet Lao Rubber Joint Stock Company requested to extend 6,722 hectares, including 5,463 hectares with a 40-year lease term and 1,259 hectares with a 30-year lease term. According to the VRG leader, the entire dossier has been submitted to the Lao Ministry of Planning and Investment and has chaired the consultation with the Lao Ministry of Agriculture and Forestry, the Ministry of Natural Resources and Environment and the Ministry of Finance of Vietnam. The Ministry of Agriculture and Forestry and the Ministry of Natural Resources and Environment have agreed in writing, but VRG is still waiting for the Ministry of Finance's written opinion, so that the Ministry of Planning and Investment can synthesize and submit it to the Lao Prime Minister for consideration and approval to increase the land lease term to 50 years. After that, Quasa - Geruco Joint Stock Company and Dau Tieng Viet Lao Rubber will re-sign the land lease contract with the Lao Ministry of Finance in 2025 to ensure compliance with regulations. Sharing about the 2025 plan, Mr. Kha said that VRG aims to achieve an output of 36,360 tons of rubber, total revenue of 66.03 million USD and after-tax profit of 9.95 million USD in Laos. The expected export value is 63.55 million USD, while the amount paid to the budget in Laos is expected to reach 4.56 million USD. At the end of his speech, the VRG leader hoped that in the coming time, the leaders of the two countries would continue to pay attention, support and resolve the recent difficulties. On behalf of the group, Mr. Tran Cong Kha pledged to successfully complete the tasks assigned by the Vietnamese Government according to the agreement between the two countries, contributing to the everlasting and everlasting traditional friendship between Vietnam and Laos. Minister of Industry and Trade Nguyen Hong Dien accompanied Prime Minister Pham Minh Chinh to visit the Lao People's Democratic Republic and co-chaired the 47th meeting of the Vietnam - Laos Intergovernmental Committee from January 9-10 at the invitation of Lao Prime Minister Sonexay Siphandone. Accompanying Minister Nguyen Hong Dien were leaders of functional departments and divisions in the Ministry of Industry and Trade such as: Department of Asia - Africa Market, Steering Committee for International Economic Integration, Ministry Office, Industry and Trade Newspaper... In 2024, the trade turnover between Vietnam and Laos is estimated to reach 2.2 billion USD, an increase of nearly 34% compared to 2023. This is the first time that the bilateral trade turnover between the two countries has exceeded the 2 billion USD mark, far exceeding the target set by the two governments, a clear demonstration of the tireless efforts of the Government, functional agencies, and businesses of both countries. Source: https://vnrubbergroup.com/tin-tuc/Nganh-cao-su-Viet-Nam-tai-Lao-thu-loi-vuot-ke-hoach
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