Operation Market

Purchasing market

Purchasing material source of the company is located in some areas: Chon Thanh, Hon Quang, Binh Long-Binh Phuoc; Ben Cat district, Phu Giao, Tan Uyen-Binh Duong; Vinh Cuu district-Đồng Nai; Dau Tieng, Go Dau, Duong Minh Chau-Tay Ninh. These are central areas of rubber raw material in South East area. Besides material purchasing, the Company also created Minh Lap plant. In 2012, the Company tapped 12 ha and produced 32 tons of SVR 3L rubber values at USD $80,000. In the plan, the company will tap the next 100 ha, produce around 294 tons SVR3L with value about USD $735,000. Next to the year of 2014, the rest area will be tapped fully; output is about 394 tons with value about USD $985,000.

Stable supply source: This is implemented through suppliers who buy directly from farmer. The company has about 20 close suppliers who cooperate with company in many years, supplying enough material sources as well as quality which meet manufacturing demand. This relationship between suppliers and company is stable and long term cooperation, bilateral support in difficult time: Suppliers still sells their material for company with low price when company has difficulty in business, on the other hand, company support to pay, price and pay in advance for suppliers when they meet competitiveness in buying material.

Rubber latex season:: For product SVR3L, material source is water latex rubber, the manufacturing time is same with latex receving time from May to February of the next year (peak season is from June to January). For product SVR10, material source is dried latex, latex cups and wires (from May to April, later 2 month than SVR3L, peak season is from July to February).

Product structure

 

Year

Manufacture (ton)

 

Buy outside (ton)

 

Total

 
 

SVR3L

SVR10

 

SVR3L

SVR10

     
   

2010

13,240

7,593

 

2,144

1,805

 

24,782

 

2011

18,112

8,871

 

2,573

2,166

 

31,722

 

2012

21,446

9,833

 

3,088

2,599

 

36,966

 

2013F

30,680

10,683

 

3,706

3,119

 

48,188

 

2014F

32,384

15,687

 

4,447

3,742

 

56,260

 

2015F

33,299

17,193

 

5,336

4,491

 

60,319

 

 

Market strategy

Beside the main market- china, Company is diversifying to such countries as Singapore, Europe, Japan, and America via important trade partners.

Now, there are some international tyre companies come to Mai Vinh for survey and choose Mai Vinh as exclusive supplier with big quality and stable. We are considering long-term cooperation plan based on balancing output and consumption condition.