Rubber export sees positive signals

Rubber export situation of Vietnam has seen positive signals over the same period in 2009, a 2.3% increase in volume and a 92.4% increase in value.

In the first week of August 2010, natural rubber prices are up compared to July 2010 as Chinese importers went back to the market in seeking supply sources after decreased imports in May and June 2010, and at the same time many other markets have seen increases in rubber imports including Malaysia, South Korea, Taiwan, India…

Meanwhile, supplies from countries such as Thailand, Malaysia, Indonesia and Vietnam are slowly increasing due to unfavorable weather. Since June 2009, the price of rubber has increased continuously and touched a record 410 USD per ton in April 2010. But in early May 2010, rubber prices dramatically decreased until mid-June 2010 to increase again.

Tran Thi Thuy Hoa, General Secretary of Vietnam Rubber Association said rubber exports of Vietnam have declined both in volume and prices in April and May 2010 since by which time the rubber begun new crop, not less to say unfavorable weather.

One major reason is that due to China – the largest rubber importer of Vietnam, accounting for 60% market share in exports – with policies limiting the export trade and border control, also sold out of rubber stocks.

. In June and July 2010, rubber exports had recovered back. According to statistics of the Ministry of Industry and Commerce, in July 2010, Vietnam exports of natural rubber reached approximately 85 thousand tons, worth US$ 237 million, up 46.7% in volume and up 44.5% in value compared with June 2010. If compared with the same period in 2009, exports increased by 2.3% and value increased by as much as 92.4%.

Thus, of the total seven first months of the year, the amount of natural rubber exports reached about 324 thousand tons, worth US$ 893 million. Despite the slight decrease of about 3.4% in quantity, value is highly increased, about 85% over the same period last year.

With these developments, Vietnam Rubber Association identified that the export of rubber raw materials this year will achieve the set target. In forecast, the national rubber output in 2010 is estimated at 770 thousand tonnes of latex, a 6.4% increase compared to 2009, export turnover of Vietnam’s rubber in 2010 can reach nearly US$ 1.5 billion, an increase of 22.3% over 2009.

However, Ms. Tran Thi Thuy Hoa shared that enterprises of the sector are very disturbed and not assured of border trade policies of China, while exports of rubber from Vietnam to China along the border trade accounted to 80% of Vietnam’s rubber exports in this market.

In order to minimize impacts by China’s border trade policies with unpredictable changes, Vietnam Rubber Association, on one hand, has advised its businesses to take initiative in improving the quality of rubber to increase export quota to China as well as expanding exports to other markets like Europe, America and other Asian countries. Those markets are increasingly importing rubber from Vietnam include Malaysia, Taiwan, Korea, Germany, the United States, Russia, India …

On the other hand, Vietnam Rubber Association also proposed with the concerned agencies of the Ministry of Industry and Commerce as well as the Vietnam Trade Office in China to promptly inform Vietnamese businesses about border trade policies of China so that our enterprises can have timely responsive solutions.

Notably, besides material rubber, rubber products exports of Vietnam have also grown significantly. In the first seven months of 2010, exports of rubber products reached 145 million, up approximately 87% over the same period last year. In particular the value of export tires alone accounted for about 70-80% of the total value of exports of rubber products.

Another issue worth further attention is the rubber products import situation of Vietnam in the 7 first months of 2010 which witnessed increase though, only 24.3% over the same period last year. This means that the deficit for rubber products was significantly reduced compared to previous years; it also shows that the production capacity of rubber products in the country grows. However, in order to assess the capacity of the rubber industry, Vietnam Rubber Association said that the concerned agencies should provide specific statistics.

Since the Customs has extracted data of rubber products exports, in the coming time the assessment of industrial products produced in the country by the Ministry of Industry and Commerce should have its own assessment data on the issue of rubber product production, especially rubber tires which has made very good progress, with a view to encouraging this development. Besides raw rubber and rubber products, another item-export rubber wood has also grown significantly in the early months of 2010. – VCCI

Tags: Vietnam rubber exports