Rubber exports likely to reach US$1.5 billion by year’s end

The recovery of the global economy in 2010 has increased the demand for raw rubber in China, India, and Malaysia, opening up an opportunity for Vietnam to boost rubber exports, says the Centre for Information and Statistics (CIS) under the Ministry of Agriculture and Rural Development.

Since June 2009, rubber prices have been continuously rising, reaching US$410 per tonne in April 2010 before dropping again in May. However, the weak US dollar and the recent European debt crisis saw prices go up again in mid-June.

The export price for RSS3 rubber reached US$3,132 per tonne in March and US$3,489 per tonne in April. However, it suddenly fell to US$3,337 per tonne in May.

Vietnam exported nearly 182,000 tonnes of rubber in the first five months of 2010, earning US$495 million, down 1 percent in volume but up 91.5 percent in value.

The price of rubber latex may rise by 30 percent in 2010 compared to the same period last year, said the CIS, attributing it to China’s policy of encouraging the use of light trucks.

China, which accounts for 60 percent of Vietnam’s rubber export earnings, has also reduced import tax on rubber.

In addition, the high prices of crude oil caused by the global economic recovery may make rubber the best choice for the production of car tyres and medical equipment.

With an output of 770,000 tonnes of rubber in 2010 so far, up 6.4 percent compared to 2009, Vietnam’s turnover from rubber exports is expected to reach US$1.5 billion, 22.3 percent higher than last year.

Tags: Vietnam rubber exports, Vietnam rubber industry