The three Vietnamese companies are the Southern Industrial Rubber Joint Stock Company, the Da Nang Rubber Joint Stock Company and the Golden Star Rubber Company.

The plant will be built in southern Ba Ria-Vung Tau province at the cost of US$65 million, of which 22 percent will be contributed by the three domestic companies. The plant is expected to produce around 110,000 tonnes annually with half the output for export.

Every year, the domestic rubber industry has to import around 50,000 tonnes of black coal at the price of US$1,200 per tonne from India, the Republic of Korea and the US.

The joint venture aims to reduce the import of black coal and price of products and increase profit.

RPG ranks sixth in the world in terms of black coal production.