The country's rubber industry is suffering from a shortage of latex, which has driven up the export price, experts have said.
Statistics from the Ministry of Agriculture and Rural Development show that rubber exports in the first four months of the year reached 173,000 tonnes, worth 445 million USD – 23.8 percent higher than the same period last year in terms of quantity.
Export prices jumped 2,650 USD per tonne, an increase of 92 percent over the same period last year.
Tran Thuy Hoa, general secretary of the Vietnam Rubber Association (VRA), said rubber prices have increased markedly against last year, bringing higher profits to producers.
"However, the level is well below the highest price of 3,000 USD per tonne in 2008," Hoa said.
She added that price rises are due to the recovery of the global economy, especially in industrial production.
"In addition, increasing domestic rubber consumption has also contributed to higher prices," she said.
She added demand is driven by new tyre-making factories, including the Republic of Korea ’s Kumho Tyre Plant in southern Binh Duong province, which produces 3 million light lorry tyres a year. Other factories typically required about 80,000 tonnes of rubber to make 4.45 million tyres.
"Domestic rubber consumption last year was 120,000 tonnes, accounting for 16.6 percent of the country's total natural rubber production. This year, it is expected to be 25 to 30 percent," she said, adding that demand would increase continuously up to 2019.
Head of the Ministry of Agriculture and Rural Development's Agro-Forestry Product Processing and Salt Industry Department Le Xuan said rubber exports this year would be good but that productivity would just marginally exceed that of last year due to the dry weather.
"The industry, therefore, will barely be able to reach its export target of 780,000 tonnes of rubber this year," Xuan said.
The ministry plans to plant an additional 40,000ha of rubber trees – capable of producing 770,000 tonnes – this year, increasing the country's rubber plantation area to 715,000ha.
The failure to meet demand has pushed up the price of products made of rubber such as tyres and mattresses by 5 percent to 15 percent./.
Statistics from the Ministry of Agriculture and Rural Development show that rubber exports in the first four months of the year reached 173,000 tonnes, worth 445 million USD – 23.8 percent higher than the same period last year in terms of quantity.
Export prices jumped 2,650 USD per tonne, an increase of 92 percent over the same period last year.
Tran Thuy Hoa, general secretary of the Vietnam Rubber Association (VRA), said rubber prices have increased markedly against last year, bringing higher profits to producers.
"However, the level is well below the highest price of 3,000 USD per tonne in 2008," Hoa said.
She added that price rises are due to the recovery of the global economy, especially in industrial production.
"In addition, increasing domestic rubber consumption has also contributed to higher prices," she said.
She added demand is driven by new tyre-making factories, including the Republic of Korea ’s Kumho Tyre Plant in southern Binh Duong province, which produces 3 million light lorry tyres a year. Other factories typically required about 80,000 tonnes of rubber to make 4.45 million tyres.
"Domestic rubber consumption last year was 120,000 tonnes, accounting for 16.6 percent of the country's total natural rubber production. This year, it is expected to be 25 to 30 percent," she said, adding that demand would increase continuously up to 2019.
Head of the Ministry of Agriculture and Rural Development's Agro-Forestry Product Processing and Salt Industry Department Le Xuan said rubber exports this year would be good but that productivity would just marginally exceed that of last year due to the dry weather.
"The industry, therefore, will barely be able to reach its export target of 780,000 tonnes of rubber this year," Xuan said.
The ministry plans to plant an additional 40,000ha of rubber trees – capable of producing 770,000 tonnes – this year, increasing the country's rubber plantation area to 715,000ha.
The failure to meet demand has pushed up the price of products made of rubber such as tyres and mattresses by 5 percent to 15 percent./.
