VIETNAM: Rubber maker to offer 7 million shares
Source: Daily "Vietnam News", Hanoi; 1 Mar 2006
Ha Noi — Thong Nhat Rubber Co will sell almost 7
million shares at an auction in HCM City Securities
Trading Centre on March 16, according to the centre.
Shares will have a face value of VND10,000. The sold
shares will have a total value of almost VND70 billion
(US$4.4 million), accounting for 36.2 per cent of the
rubber company’s chartered capital.
Le Van Loi, director of Thong Nhat Rubber Co (TNRC),
said the company expects to raise capital from the
auction to renew its processing technology. The share
issue would help the company promote a joint venture
with foreign partners, aimed at reducing the export of
raw latex, Loi said.
He added that TNRC hopes new shareholders will be
investors who know about market demands and price
fluctuations in order to participate in making company
strategy on production, business, diversification of
products, improving product quality, and market
TNRC, based in Ba Ria town, has total chartered
capital of VND192.5 billion, of which the State holds
51 per cent; company staff 3 per cent; and strategic
investors 9.8 per cent. The company grows, exploits,
processes and trades in all kinds of rubber, as well
as cattle and poultry, and civil, industrial and
The company is also a partner in the joint venture of
Ba Ria-Serece Port with a total capital of $23.8
million. In the venture, TNRC holds 12.8 per cent of
total capital and provides port and warehouse
TNRC has 2,000ha of rubber plantations, producing a
total of 1.3 tonnes of rubber latex per ha annually.
Overall, according to the World Rubber Association,
Viet Nam has 450,000ha of rubber plantations and
processes an average of 400,000 tonnes of rubber latex
per year, 80 per cent of which is exported.
The Ministry of Trade expects the country will export
635,000 tonnes of rubber latex this year, earning $956
million. These figures are expected to increase by
10.6 per cent in volume and 21.5 per cent in value
over last year.
Viet Nam exported 550,000 tonnes of rubber last year,
earning $787 million, according to the General
Statistics Office. The exports increased by 31.9 per
cent in value and 11.9 per cent in volume over 2004,
the office reported.
Last year, the largest rubber export market of Viet Nam was China,
followed by Japan, South Korea, Germany and the US.
(Syed Rashid Ali, Karachi, Pakistan)