Rubber exports to hit $3b

HA NOI – Rubber exports are expected to total about 830,000 in 2011, earning over US$3 billion, with annual output projected to increase by 4 per cent, according to the Viet Nam Rubber Association (VRA).

Nguyen Viet Chien, director of the Centre for Information and Statistics under the Ministry of Agriculture and Rural Development, said rubber exports in June were estimated at 40,000 tonnes, worth $160 million. This brought the total for the first half of the year to 274,000 tonnes at a value of $1.2 billion, up 80.3 per cent in value over the same period last year.

Economists predicted that rubber prices in the last six month would not drop below US$4,000 per tonne, with major producers such as Thailand, Indonesia, and Malaysia looking to protect their rubber prices to avoid losses.

Global demand for natural rubber increased by 3.8-4 per cent this year.

Tran Thuy Hoa, General Secretary of the VRA said global rubber production would continue to increase, although levels would not meet the demand and the price would remain high. This increased demand would come mainly from China, accounting for 59.5 per cent of the country’s total rubber exports.

The average price of rubber for export in the first six months hit $4,410 per tonne, 60 per cent higher than last year.

Viet Nam has the fifth largest area of rubber plantations in the world, and ranks fourth in terms of exports.

Source: Vietnam News