Phuoc Hoa Rubber JSC (PHR) is aiming to extract 12,800 tonnes of rubber in 2025, for total revenues of over $59 million, including around $51.5 million from rubber sales.

Photo: baodautu.vn

The company projects an average selling price of $1,750 per tonne, post-tax profit of $9.7 million, and a minimum cash dividend payout ratio of 10 per cent.

While revenue is expected to decline by 3.8 per cent on-year, post-tax profit is projected to increase by nearly 31 per cent. The company plans to optimise land use in Binh Duong province to enhance operational efficiency and exceed its revenue and profit targets by at least 10 per cent.

For the first quarter of the year, PHR has set a target of extracting of 1,920 tonnes of dry latex, processed rubber output of 3,420 tonnes, and sales of 4,900 tonnes, with an average price of $2,120 per tonne, generating $10.3 million in revenue and close to $1.2 million in pre-tax profit.

MB Securities anticipates that Phuoc Hoa Rubber’s 2025 revenue may dwindle by 3 per cent compared to 2024, but post-tax profit could grow by 10 per cent, driven by sustained high selling prices.

By 2026, the company’s revenue and net profit are expected to increase by 2 per cent and 8 per cent, respectively.

Dong Phu Rubber JSC’s high-yield rubber plantations produce over two tonnes per hectare and are expected to support growth in both rubber extraction and industrial real estate.

The company’s undertaking in Bac Dong Phu Industrial Park expansion, encompassing 317 hectares (ha), was approved for investment on January 16, and is anticipated to generate cash flow over the next two years.

Meanwhile, Vietnam Rubber Group’s (GVR) plantations generate an average yield of 1.5 tonnes per ha, yet the company’s 2025 outlook remains promising due to projected high rubber prices in the first half of the year.

The Association of Natural Rubber Producing Countries expects the demand for rubber to remain stable, particularly in China, Vietnam’s primary market for rubber exports.

An Binh Securities projects GVR’s revenue to grow by 6.6 per cent on-year to $1.12 billion this year, while post-tax profit is expected to rise by 4.7 per cent to $176.3 million.

As for Tay Ninh Rubber (TRC), the company is managing over 7,000ha of rubber plantations which continue to achieve high yields of over 2 tonnes per ha.

In Cambodia, its plantations, established in 2014, are entering peak production, yielding around 1.3-1.4 tonnes per hectare.

In Laos, the company oversees more than 10,000ha, with the majority entering peak harvest season between 2024 and 2029, expected to yield over 2 tonnes per hectare.

Over the past month, PHR shares rose by 25 per cent, TRC shares by 9.2 per cent, GVR shares by 6.2 per cent, Song Be Rubber shares by 6.1 per cent, and DakLak Rubber Investment JSC shares by 8.2 per cent.

Several stocks recorded substantial gains on-year, with Tan Bien Rubber JSC shares rose 123 per cent, Tay Ninh Rubber JSC grew by 151 per cent, and Dak Lak Rubber JSC went up 109 per cent.

Market analysts predict rubber prices will continue their upward trend in 2025, benefiting the natural rubber sector.

MB Securities forecasts that prices will remain elevated through the second quarter of 2025, with an estimated annual increase of 5-10 per cent compared to 2024.

In the US, a declining reliance on rubber imports from China, Canada, and Mexico has created new opportunities for Vietnamese rubber exporters, who increased their exports to 29,200 tonnes in 2024, valued at $50.6 million, raising the market share from 1.5 per cent in 2023 to 1.7 per cent.

As global trade dynamics continue to evolve, Vietnam’s rubber industry remains well-positioned to leverage rising prices, supply constraints in competing markets, and increasing demand from key trade partners.

Ho Chi Minh City has announced plans to develop infrastructure along the Saigon River towards the East Sea. Photo: Le Toan

Talking with VIR on March 4, Doan Manh Thang, director of water and resilience at Royal HaskoningDHV Vietnam, said the Saigon River has great potential but has not been exploited properly. The plan will map out a waterway from Cu Chi to the city centre.

Royal HaskoningDHV is the leader of a consortium that includes Boston Consulting Group, Roland Berger, the Ministry of Construction, and ACUD Consult that has been tasked with developing this plan which was approved by the prime minister on December 31, 2024.

The plan aims to develop Ho Chi Minh City into a hub of high-quality human resources, modern services, and advanced industries, pioneering in the green economy, the digital economy, and a digital society. It will also maintain its position as Vietnam’s leading centre for economy, finance, commerce, culture, education, and science and technology, with deep international integration.

“We can build service areas such as marinas and commercial centres along the river, alongside green spaces,” Thang said.

Moreover, a metro line from the city centre to Can Gio Island could act as the driving force for the city to reach double-digit growth, he confirmed.

Can Gio Port, meanwhile, is strategically located opposite Cai Mep-Thi Vai Port – the largest international port in Vietnam. However, it is only operating at 50 per cent capacity. The government has decided to upgrade Can Gio Port to become an international transit centre, with an estimated investment of $4 billion. The port is expected to handle 10 per cent of Vietnam’s imports and exports, of which 90 per cent will be international transshipment.

According to Phan Van Mai, newly appointed Chairman of the National Assembly’s Economic and Financial Committee and former Chairman of Ho Chi Minh City People’s Committee, the city will strive for regional GDP growth of 8.5-9.0 per year until 2030.

“To effectively implement the plan, the city needs to mobilise resources, attract investment, develop human resources, and apply science and technology, innovation, digital transformation, and environmental protection,” Mai said.

Meanwhile, Thang said that the biggest bottleneck in implementing this plan is the lack of mechanisms to entice capital.

“Public investment is the seed capital to stimulate investment from other economic sectors. In fact, many investors are interested, but the mechanisms for investment must be more detailed,” he said.

A resolution issued in June 2023 grants special mechanisms for the development of Ho Chi Minh City. Meanwhile, in February 2025, the National Assembly issued another resolution for Hanoi and Ho Chi Minh City to invest and develop metro systems. On that basis, Ho Chi Minh City will invest simultaneously and complete seven routes with a total length of 355km within 10 years.

“Initially, the state will have to spend money because it will be difficult to attract investment, but when it starts to take shape, private investors will be looking to spend money to build infrastructure. This would remove the bottleneck, but still requires appropriate policies,” Thang said.

Thu Thiem New Urban Area – the new financial and economic hub of Ho Chi Minh City. Photo: Le Toan

In total, 11 plots covering 9.2 hectares in the Number 1 Functional Area will be used for the project in Thu Duc city.

The location was reported to the local Department of Telecommunications on March 11 to set up a plan to develop telecommunications and digital infrastructure for the centre.

​​Thu Thiem New Urban Area was approved in 1996 covering 930 hectares on the east bank of the Saigon River and opposite District 1. When completed, the area will have a population of 200,000 people.

The area will be divided into a central core, a northern residential area, a residential area along Mai Chi Tho Avenue, an eastern residential area, and a southern zone.

On January 4, Prime Minister Pham Minh Chinh chaired a conference to announce an action plan to implement a regional and international financial centre in Ho Chi Minh City.

At the conference, PM Chinh said that Ho Chi Minh City is located at the head of Southeast Asia, making it convenient for trade and financial connections with major markets such as China, Japan, South Korea, and ASEAN. Building a financial centre there will help reduce costs and transaction times for traders.

To accelerate the project, early this year, Ho Chi Minh City established a steering committee for the construction and development of the centre with 29 members. The establishment of the international financial centre is expected to create a foundation for the future growth of Ho Chi Minh City. This is also an opportunity for the city to attract international investors and increase foreign investment in various sectors.