Vietnam ranked the world's third largest natural rubber producerand the fourth largest exporter following Thailand , Indonesia andMalaysia in 2013. Currently, when the rubber supply exceeds thedemand, Vietnam needs to enhance the competitive edge to be able tomaintain its rank in the global market, the Vietnam Business ForumMagazine (VBF) reported.
According to Ministry of Agriculture andRural Area Development, rubber export in June was estimated to be86,000 tonnes, earning 153 million USD. With this estimation, in thefirst 6 months of 2014, rubber export is estimated to reach 337,000tonnes, raking in 644 million USD, down 11.7 percent in terms ofquantity and 33 percent in terms of value over the same period of 2013.On average, rubber was exported at a price of 1,842 USD a tonne for thefirst 5 months of 2014, down 28.9 percent over the same period of 2013.
Referringto export market, although China and Malaysia remained Vietnam’s largest consumption markets of rubber in the first 5 months of 2014,the value was in the downtrend over the same period of 2013. In thefirst 5 months of 2014, Holland ’s market posted the sharpest growth,6 times higher in terms of quantity and 5 times higher in terms ofvalue over the same period of 2013.
Since the beginning of 2014,rubber price dramatically dropped due to supply surplus; Many farmerscut down rubber trees and cultivated other plants. Besides, there weremany other obstacles like export tax, VAT tax, credit support packagefor farmers, and export guarantee.
At a recent conference onrubber production 2014, Minister of Agriculture and Rural AreaDevelopment Cao Duc Phat emphasised that rubber production was animportant industry, having great impacts on farmers’ income. As a matterof fact, Vietnam should diversify its rubber export markets.
Alsoat the conference, delegates said that it was time to promoterestructuring the rubber industry in order to develop the sector in asustainable manner as well as to increase export value.
Cuttingdown of rubber trees and growing other plants of farmers have causedgreat losses for Vietnam ’s rubber industry. Explaining thissituation, Chairman of Vietnam Rubber Group Tran Ngoc Thuan said whenrubber’s price was high, many people rushed to borrow capital from thebanks to grow rubber trees or repurchase young plants. By now, whenprice has decreased, farmers face losses and cut them down. They havecut down not only 2 to 3 year old rubber trees, but also trees withrubber latex. In another case, planters have not harvested rubber latexbecause revenues from rubber latex cannot cover costs for employees.
Asprice of rubber latex has dropped to the lowest level for the last 3-4years, Minister Cao Duc Phat officially required farmers not to expandnewly grown rubber tree area, at the same time to harvest latexproperly, reduce costs for employees. Intensive production is needed toimprove added value for rubber.
The planting department has alsowarned provinces of not expanding rubber tree area. At the same time,they should apply techniques to harvest latex to reduce prices. Besides,provinces should adjust production area in the rubber industry indirection of stopping growing new rubber trees, concentrating onre-growing on old areas, as well as producing intensively rubberplantation to improve productivity and quality. Specifically, rubberplants outside planning areas, weak plants should be replaced by othertrees with higher benefits; old rubber plants should be cut down forwood and be prepared for re-growing.
Vietnam Rubber Group alsoproposed several incentives relating to VAT, corporate income taxes,credit package for rubber industry, policies on land rent fees,insurances, storage for rubber latex in the future.-VNA
According to Ministry of Agriculture andRural Area Development, rubber export in June was estimated to be86,000 tonnes, earning 153 million USD. With this estimation, in thefirst 6 months of 2014, rubber export is estimated to reach 337,000tonnes, raking in 644 million USD, down 11.7 percent in terms ofquantity and 33 percent in terms of value over the same period of 2013.On average, rubber was exported at a price of 1,842 USD a tonne for thefirst 5 months of 2014, down 28.9 percent over the same period of 2013.
Referringto export market, although China and Malaysia remained Vietnam’s largest consumption markets of rubber in the first 5 months of 2014,the value was in the downtrend over the same period of 2013. In thefirst 5 months of 2014, Holland ’s market posted the sharpest growth,6 times higher in terms of quantity and 5 times higher in terms ofvalue over the same period of 2013.
Since the beginning of 2014,rubber price dramatically dropped due to supply surplus; Many farmerscut down rubber trees and cultivated other plants. Besides, there weremany other obstacles like export tax, VAT tax, credit support packagefor farmers, and export guarantee.
At a recent conference onrubber production 2014, Minister of Agriculture and Rural AreaDevelopment Cao Duc Phat emphasised that rubber production was animportant industry, having great impacts on farmers’ income. As a matterof fact, Vietnam should diversify its rubber export markets.
Alsoat the conference, delegates said that it was time to promoterestructuring the rubber industry in order to develop the sector in asustainable manner as well as to increase export value.
Cuttingdown of rubber trees and growing other plants of farmers have causedgreat losses for Vietnam ’s rubber industry. Explaining thissituation, Chairman of Vietnam Rubber Group Tran Ngoc Thuan said whenrubber’s price was high, many people rushed to borrow capital from thebanks to grow rubber trees or repurchase young plants. By now, whenprice has decreased, farmers face losses and cut them down. They havecut down not only 2 to 3 year old rubber trees, but also trees withrubber latex. In another case, planters have not harvested rubber latexbecause revenues from rubber latex cannot cover costs for employees.
Asprice of rubber latex has dropped to the lowest level for the last 3-4years, Minister Cao Duc Phat officially required farmers not to expandnewly grown rubber tree area, at the same time to harvest latexproperly, reduce costs for employees. Intensive production is needed toimprove added value for rubber.
The planting department has alsowarned provinces of not expanding rubber tree area. At the same time,they should apply techniques to harvest latex to reduce prices. Besides,provinces should adjust production area in the rubber industry indirection of stopping growing new rubber trees, concentrating onre-growing on old areas, as well as producing intensively rubberplantation to improve productivity and quality. Specifically, rubberplants outside planning areas, weak plants should be replaced by othertrees with higher benefits; old rubber plants should be cut down forwood and be prepared for re-growing.
Vietnam Rubber Group alsoproposed several incentives relating to VAT, corporate income taxes,credit package for rubber industry, policies on land rent fees,insurances, storage for rubber latex in the future.-VNA
