Rubber exports rise 82.5% in H1

The country exported 239,000 tonnes of rubber worth US$656 million in the first half of the year, with earnings 82.5 per cent higher year-on-year, according to the general secretary of the Viet Nam Rubber Association.

Speaking at a meeting in HCM City yesterday, Tran Thi Thuy Hoa said although the volume fell 5.3 per cent, earnings increased due to higher global prices of latex.

The price of rubber increased from January to April due to a recovery in demand from many industries around the world and a fall in rubber supply.

In late May, China sold a large amount of rubber, which caused the price slightly decreased. In June, supply increased and the price fell a bit further.

However, the average export price in the first half of the year was $2,752 a tonne, 89 per cent higher than in the same period last year.

Rubber export volume rose sharply over the first three months of the year, but decreased strongly in April and May, due to a decrease in exports to China, according to Hoa.

She blamed the situation on the ban by Chinese authorities on rubber exports across the border.

China is currently the largest buyer of Vietnamese rubber, accounting for 60 per cent of the country’s total rubber exports.

In June, border trade with China resumed because China authorities loosened the ban.

To avoid the risks involved in putting all their eggs in the China basket, Hoa said rubber exporters needed to diversify their markets.

In addition, Vietnamese authorities should also help companies map out appropriate business strategies by announcing changes in China’s trade policies.

To increase Vietnamese rubber exports, Hoa urged the Ministry of Industry and Trade to work with Chinese authorities to reduce import tariffs on rubber.

Currently, more than 80 per cent of total rubber volume exported to China is made via border trade.

Tags: Vietnam Rubber, Vietnam rubber exports