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Rubber exports on target to hit $1.1bil
The rubber industry expects to meet its target of US$1.1 billion this year as the export price has increased, according to the Viet Nam Rubber Association.
The rubber export price has risen from $1,900 to $2,050 a tonne in recent days, an increase of 30 per cent compared to earlier this year.
The association attributed the export price hike to the global economic recovery as well as growing demand for rubber in China, the US, Japan and the EU.
Association experts predict that rubber demand would grow for the remainder of the year, keeping the price high.
The price hike will also encourage rubber farmers to increase production for export.
Nguyen Tan Duc, deputy director of Dau Tieng Rubber Company in Dau Tieng district in southern Binh Duong province said in the last nine months the company had exported 30,100 tonnes of rubber, earning VND900 billion ($52 million) in revenue.
Preventing a fall
Tran Thi Thuy Hoa, Viet Nam Rubber Association (VRA) Secretary General, said one of the major factors driving up the price was the VRA’s effort to balance supply and demand with an aim to prevent a price fall in the market.
Earlier this year, the VRA said it would continue exploiting and processing as usual if the rubber export price reached $1,000 or more a tonne.
If the export price fell below $1,000 a tonne, the VRA said it would cut production and ask the State to provide subsidised low-interest loans to buy 200,000 tonnes of rubber in reserve to prevent short supply.
The VRA also plans to work with the world’s major rubber producers, including Thailand, Indonesia and Malaysia, to reduce production by 1.1 million tonnes this year to maintain a balance between demand and supply.
The association continues to closely monitor the market to increase exports, and not sell in huge amounts, aiming to stablise the market.
In the last nine months, Viet Nam exported 491,000 tonnes of rubber with a revenue of $734 million.
For the remainder of the year when the harvest is at its peak, companies will strive to export an additional 210,000 tonnes, with an expected revenue of $410 million, bringing total export revenue to $1.1 billion. The Ministry of Industry and Trade said the country’s rubber plantations would be expanded to 640,000 hectares with an output of 680,000 tonnes at the end of the year.
Viet Nam’s major rubber export markets are mainland China, Southern Korea, Malaysia and Taiwan, with the first topping the list and accounting for 60 per cent of the country’s total rubber exports.
vietnamnet, vietnamnews
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