Finding solutions to the domestic rubber consumption

Vietnam needs to reduce the rate of primary industry, changes in production methods, types of natural rubber latex, increase deep processing and finding new markets. This is the general opinion of the participants at the seminar "Promoting efficiency and raw rubber consumption in the country" had occurred.

According to the Department of Agriculture, Forestry and Fisheries Processing and Salt (Ministry of Agriculture and Rural Development), in 2014 the export of raw rubber country is estimated at 1 million tonnes, 1.8 turnover of $ 2 billion reduction of about 7-10% in volume, but turnover could decline to 25-30%. Cause the world rubber prices will continue to decline in the long term, this time rubber export price to about $ 1,871 / ton (40 million / tonne), down 59% from the peak in 2011.

6 major markets accounted for 85% of Vietnam's rubber exports by China, Malaysia, India, United States, South Korea and Taiwan. In that export to the Chinese market first 6 months of 2014 still accounted for the highest proportion is nearly 40% yield (45% decrease compared to the same period in 2013). Traded raw rubber and rubber products are mainly primary processing through agreement and the contract of sale, no exchanges, the Chinese market are mainly exported to many potential quota risk.

"2014, Rubber Research Organization world (IRGS) forecast surplus of natural rubber in the world will be 234,000 tons and can last up to 2016 rubber prices will not be increased again as the with 2011 points, the current price of rubber growers can only draw from the hole. So, to save rubber trees we need to quickly change production methods and types of natural rubber latex, increase deep processing and finding new markets, "said Nguyen Trong Thua - Processing Department Agriculture, Forestry and Fisheries and Salt said.

Vietnam Rubber Association (VRA) said the current domestic market revenue targets around 154,000 tonnes of rubber, accounting for approximately 16-20% of the total production of natural rubber in the country, 80% of the remaining amount to be produced crude. The reason, according VRA primarily due to the structure of Vietnam's rubber category yet meet the needs of domestic manufacturers, mainly for export. The tire manufacturers now need to use categories SVR 20, SVR 10, RSS 3, but these items have low rates of natural rubber structure of Vietnam. While there are 40-50% of the SVL 3L category, the domestic demand is not high.

Many rubber processing industries, said Vietnam has to import rubber from Thailand, Malaysia due to the quality of our country's natural rubber unstable, uneven supply in many unlicensed shipment inspection quality. Along with that, the growth of the rubber processing industry in the country has been slow. The rubber processing enterprises with a high growth rate is largely invested enterprises overseas or large-scale enterprises. Particularly difficult for small and medium businesses access to high-quality materials of the natural rubber producing large scale, lack of market information, head to the narrow, outdated technology, poor management, weak human difficult to access loans with preferential interest rates, with limited access to commercial promotion ...

To reduce crude exports and industrial development and processing of rubber products, VRA said that there must be a link in the value chain 3 rubber. Accordingly, the business community in Vietnam rubber should closely linked, establishing customer trust relationships between suppliers of raw materials and processed products. Providers are committed to ensuring the supply of quantity and quality, reasonable price control. Priority processing enterprises using local rubber products, investment technology improvements, equipment, human resources, product development and new markets.

Regarding the state should manage the planning area of rubber trees, guide rubber production planning long-term investments to avoid deforestation as trees low price. At the same time the agency should establish unified management and quality rubber, land incentives, tax, business loans for deep processing of rubber products.

On the business side, Mr. Tran Ngoc Thuan - General Director of Vietnam Rubber Group (VRG) said, from now to 2020, the Group will focus on embedded products and colors such as rubber gloves, belt, rope belts, rubber ball ... Along with that, the annual liquidation of the Corporation approximately 10000-12000 hectares of rubber, wood production Results 1 - 1.2 million m³ serve the wood processing plant of VRG.