Falling rubber prices have been hitting local farmers and businesses for over a year.

The price had fallen sharply from 25,000 VND per kilogram in the Central Highlands in mid-2012 to 8,000-9,000 VND per kilogram on August 3, according to farmers.

Rubber market experts said the falling price was following a global trend because large importers of Vietnamese rubber such as China had high inventories, and supplies were plentiful following harvests in Thailand and Malaysia .

In July, the average export price dropped by 13.7 percent against the same period last year to 2,191 USD per tonne, according to the Ministry of Industry and Trade.

This has had a negative impact on exports, and in the first seven months of this year, volume fell by 0.1 percent to 500,000 tonnes and value plunged 17.6 percent to 1.22 billion USD compared to the same period last year.

Rubber export enterprises expected output to increase but prices to fall due to high supply, according to the Vietnam Rubber Association.

Rubber exports for this year were estimated to fall by 7.7 percent in volume and 16.3 percent in value compared with 2012, said the Ministry of Agriculture and Rural Development./.