Tyre and tube production inVietnam has enormously increased since early this year due to low priceof natural rubber on the local market, according to experts.
Accordingto the Ministry of Agriculture and Rural Development, Vietnam saw ayear-on-year decline of 23.1 percent in export volume of rubber to144,000 tonnes and 42 percent in export value to 292 million USD in thefirst quarter of this year.
Over the last few months, exportprice of local rubber dropped many times to as low as 40 million VND(1,900 USD) per tonne recently, that is, a drop to half the price from2011 because of oversupply in the world market.
Farmers and enterprises producing rubber faced difficulties in production and business due to the decline in exports.
NguyenHong Phu, deputy general director of the Vietnam Rubber IndustrialGroup (VRG), said the drop in price of rubber, however, was advantageousto the tire and tube industries in Vietnam, reported Thoi bao Kinh teViet Nam (Vietnam Economics Time) newspaper.
Therefore, in thefirst quarter of this year, the VRG gained an increase of 10 percent inexport value of tire and tube compared with major export markets ofASEAN and Middle East countries the same period last year, he added.
Meanwhile,the Vietnam Chemical Group (Vinachem) claimed its production of rubbertyres and tubes had increased in the first quarter of this year due tothe low price of rubber.
Its industrial production value reached 1.62 trillion VND, which is 2.4 percent higher than the same period last year.
Inthe first quarter of this year, output of its products had an increaseof 6.5 percent to 434,772 units of auto tire, of 12.7 percent to 1.3million units of motor bicycle, and 13.4 percent to 2.5 million units ofbicycle compared with the same period last year.
Vinachem's exports of tyres and tubes accounted for 29.6 percent of the group's export value.
Atpresent, Vietnam has 830 enterprises in the tyre industry, including 30production enterprises, 170 trading companies, 170 exporting companies,and 460 tyre importing companies.
In recent years, Vietnam has changed from being a country that imported rubber tyres and tube products to one that exports them.
Now,the local tyre and tube industry has ramped up technological investmentto produce high-grade products such as radial and steel-belted radialtyres for all markets.-VNA
Accordingto the Ministry of Agriculture and Rural Development, Vietnam saw ayear-on-year decline of 23.1 percent in export volume of rubber to144,000 tonnes and 42 percent in export value to 292 million USD in thefirst quarter of this year.
Over the last few months, exportprice of local rubber dropped many times to as low as 40 million VND(1,900 USD) per tonne recently, that is, a drop to half the price from2011 because of oversupply in the world market.
Farmers and enterprises producing rubber faced difficulties in production and business due to the decline in exports.
NguyenHong Phu, deputy general director of the Vietnam Rubber IndustrialGroup (VRG), said the drop in price of rubber, however, was advantageousto the tire and tube industries in Vietnam, reported Thoi bao Kinh teViet Nam (Vietnam Economics Time) newspaper.
Therefore, in thefirst quarter of this year, the VRG gained an increase of 10 percent inexport value of tire and tube compared with major export markets ofASEAN and Middle East countries the same period last year, he added.
Meanwhile,the Vietnam Chemical Group (Vinachem) claimed its production of rubbertyres and tubes had increased in the first quarter of this year due tothe low price of rubber.
Its industrial production value reached 1.62 trillion VND, which is 2.4 percent higher than the same period last year.
Inthe first quarter of this year, output of its products had an increaseof 6.5 percent to 434,772 units of auto tire, of 12.7 percent to 1.3million units of motor bicycle, and 13.4 percent to 2.5 million units ofbicycle compared with the same period last year.
Vinachem's exports of tyres and tubes accounted for 29.6 percent of the group's export value.
Atpresent, Vietnam has 830 enterprises in the tyre industry, including 30production enterprises, 170 trading companies, 170 exporting companies,and 460 tyre importing companies.
In recent years, Vietnam has changed from being a country that imported rubber tyres and tube products to one that exports them.
Now,the local tyre and tube industry has ramped up technological investmentto produce high-grade products such as radial and steel-belted radialtyres for all markets.-VNA
