Vietnam, the fourth largest global producer of rubber is mulling over joining the top three rubber-producing nations league of Thailand, Malaysia and Indonesia, which account for about 70 % of global supply, in the International Tripartite Rubber Council (ITRC).
According to Tran Tuan Anh, Deputy Minister of Vietnam’s Industry and Trade, joining the ITRC can reinforce the council’s effort to improve the global rubber prices. Nonetheless, they are still gathering more information before arriving at a definitive action, he said.
The ITRC has agreed to cut down the rubber shipments from October through cutting down aging trees, removing 450,000 tonnes of rubber from the market. The move has pulled up rubber prices to 29% from the lowest in almost three years in August.
A commodity analyst believed that Vietnam’s inclusion in the ITRC can bolster the influence of producer actions on the market, and even more so if Vietnam also curb its exports, it could boost rubber prices.
However, Vietnamese officials are still mum when the country is joining the council since, they said, membership requires investment, among other reasons. (RJA)