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Diversifying rubber export markets

( Update: 28/08/2014 )

Data from the General Statistics Office show that in July 2014 Vietnam exported an estimated 105,000 tonnes of natural rubber worth US$180 million, a rise of 12 percent in volume and 11.8 percent in value compared with June. In the first seven months of 2014, Vietnam exported 454,000 tonnes of rubber, earning US$832 million, down 9.5 percent in volume and 32 percent in value compared with the same period last year.

Explaining these decreases in rubber exports, Deputy Minister of Industry and Trade Tran Tuan Anh said that in 2014, due to the slow recovery of the world economy, the global demand for agricultural products and rubber in particular has considerably dropped. Many countries which import Vietnamese natural rubber have reduced their orders.

In the first six months of 2014, China, the largest importer of Vietnamese rubber, imported a mere 138,000 tonnes, down 23.6 percent in volume and 42.6 percent in value. “In China, the demand for natural rubber has decreased while supplies increased. The Chinese government has applied a policy aimed at promoting the planting of industrial crops. Due to increased domestic supplies, China’s demand for rubber imports has decreased,” Deputy Minister Tran Tuan Anh said.

To help rubber export businesses overcome difficulties, Deputy Minister Tran Tuan Anh said, the Ministry of Industry and Trade has taken synchronous measures to improve the production capability and product quality while at the same time intensifying trade promotion activities and building a legal corridor for exports through negotiations on bilateral and multilateral free trade agreements. Thanks to these efforts, the export markets for agricultural products and rubber in particular will be diversified in the time to come. Currently, apart from China, some other markets such as India, Hong Kong (China), the Philippines, American and European countries also have demand for import of rubber products. The Ministry of Industry and Trade has carried out surveys to promote rubber exports to these markets.

“A higher tax rate compared with the previous years has made it more difficult for businesses to export rubber products. To reduce difficulties for them, it is necessary to lower the tax rate applied to rubber exports. The quality of export rubber must be more tightly managed and controlled,” Deputy Minister Tran Tuan Anh said.

Vietnam has a long history of planting rubber while the global demand for natural rubber tends to increase continuously in the long term. “If there are no big changes in the world market from now to the year’s end, Vietnam’s rubber exports in 2014 will possibly reach one million tonnes, bringing revenue of about US$2 billion, down 19.7 percent in value and 7.1 percent in volume compared with last year,” Deputy Minister Tran Tuan Anh added./.

By Bao Ngoc - http://ven.vn