Rubber latex is collected at the Quang Tri Rubber Co. Ltd (Photo: VNA)Hanoi (VNA) – The rubber industry of Vietnam isfacing a dire need to better adapt itself to the market situation as it islikely to be affected by the US-China trade tension that is forecast to not endsoon.
Vietnam is the world’s third biggest naturalrubber producer. In 2017, the nationwide rubber farming area reached 969,700ha,generating nearly 1.1 million tonnes of latex.
About 1.06 million tonnes of rubber worth 1.45billion USD were exported in the first nine months of this year, up 19.9percent in volume but down 10 percent in value from 2017, according to theMinistry of Agriculture and Rural Development.
China is the largest consumer of Vietnamesenatural rubber, purchasing more than 60 percent of the total natural rubberexport volume. The export volume and value to China are still on the rise,showing the industry’s dependence on this market.
To Xuan Phuc, a specialist from the US-basedForest Trends organisation, said the US-China trade war will surely affectVietnam’s rubber industry.
He elaborated that China is the main importer ofmaterial rubber from Vietnam to use for tyre manufacturing. Meanwhile, the UShas imposed high tariffs on Chinese auto components shipped to this country. Asa result, Vietnam’s rubber exports to China will be influenced.
Additionally, many studies predict that naturalrubber prices in the world market until 2030 are unlikely to bounce back to thelevel in 2011.
Managerial agencies and the Vietnam RubberAssociation have warned against production expansion. However, this warning hasjust been applicable to businesses and large-scale rubber plantations.
In the meantime, more than 60 percent of the totalnatural rubber output in the country comes from small farms, whose adaptationto the market demand remains limited. Therefore, the sector will still have toface numerous difficulties in the time ahead, insiders said.-VNA
VNA
