Vietnam to Keep Rubber Import thanks to Richer Domestic Supply

1:31:38 PM | 6/22/2007

Vietnam expects to keep rubber import flat in the coming years as the supply for natural rubber is expected to be on the rise, said a top official of Vietnam Rubber Association.
 
Tran Thi Thuy Hoa, secretary general of Vietnam Rubber Association, said this outlook is based on smooth underway rubber projects of tree growing area expansion.
 
Hoa said Vietnam may maintain rubber import at the current level, adding that this year’s volume may reach 250,000 tons, from 230,000 tons last year.
 
In the first quarter of 2007, Vietnam imported 59,000 tons of natural rubber, a slight fall of 3.5 per cent over the same period last year, report from the Customs House said.
 
A large amount of of imports are tire-grade rubber, such as RSS3 and TSR 20, from Thailand, Cambodia, Indonesia and Malaysia as Vietnam does not produce tire-grade rubber.
 
The rubber is then re-exported to China, which prefers buying from Vietnam to importing from Thailand or Indonesia, the world’s two biggest exporters, due to distance.
 
Vietnam, the fourth largest rubber exporter, is only able to produce high-quality SVR 3L and natural latex, which are used for manufacturing non-tire products like footwear, condoms and gloves.
 
The country plans to produce around 600,000 tons of rubber this year, up from 553,500 tons in 2006.
 
With imports from other producers, Vietnam is likely to export total 800,000 tons in 2007, up from 707,900 tons last year, Hoa said.
 
In 2008, Vietnam targets at additional production of 30,000-40,000 tons as more rubber trees mature and because of higher productivity with the use of high-yield rubber clones, Hoa pointed out.
 
She added that the country may increase rubber output to nearly 1 million tons by 2015 by expanding rubber areas to 1.5 million hectares from 516,100 hectares in 2006.
 
Although Vietnam is looking to increase tire-grade output, it will focus on production of high quality latex to tap the growing gloves industry as few countries produce latex.
 
“We have to import from others so that buyers have any kind of rubber they need,” she said. (www.agroviet.gov.vn)