Vietnam’s rubber production faced many difficulties in 2013, but Binh Duong’s rubber export industry still reached high results. It is predicted that Binh Duong’s rubber export industry will promise well in 2014.  

Rubber latex processing at Phuoc Hoa Rubber JSC

Currently, Binh Duong has more than 130,000 hectares of rubber trees, including more than 80,000 hectares from small rubber plantations. There are two big rubber companies, namely Dau Tieng Rubber One-Member Co.Ltd. and Phuoc Hoa Rubber Joint Stock Company (JSC). The two companies have over time gone along with farmers at the local small rubber plantations, especially in the task of rubber latex purchasing. Their favorable exports will support the development of small rubber plantations a lot, contributing to ensuring an income source for the local rubber growers.

In 2013, Binh Duong’s export rubber latex output reached more than 270,000 tons, a twofold increase in comparison to 2012. The price of rubber latex saw a continuous reduction, due to the natural rubber area on increase. There was an increase in the export rubber output, but a reduction in export value, due to the selling price lower than previous years. One of important elements affecting Vietnam’s export rubber price was that Vietnam’s export rubber industry mainly depended on Chinese market. It is known that Vietnam’s rubber output exporting into China accounted for 45% of total export output.

Thanks to sound policies, Phuoc Hoa Rubber JSC and Dau Tieng Rubber One-Member Co.Ltd. last year maintained their export rubber output at a high level, thereby fulfilling the set targets. Phuoc Hoa Rubber JSC secured US$34mln in export turnover. This was an impressive figure amid Vietnamese rubber industry facing difficulties.

Nguyen Van Tan, General Director of Phuoc Hoa Rubber JSC said that although facing difficulties, the JSC has still maintained export contracts with partners in the world. Also according to him, the JSC will further maintain and improve its export rubber output in 2014 by trying to meet all requirements from partners; maintain the quality of latex products, repair restrictions; listen to partners’ ideas, make coherence with partners; maintain old partners and further seek new ones…

Whilst, Dau Tieng Rubber One-Member Co. last year maintained its export rubber output at a high level with the selling price that was higher than other units. Particularly, the company exported more than 29,000 tons of rubber latex to main markets, including Northern Europe, Eastern Europe, Japan, China, Singapore, Taiwan, Malaysia, Australia, New Zealand…

For 2014’s plan, the company’s export rubber output will reach 27,000 tons. Nguyen Quoc Viet, Deputy General Director of the company said that the company overcome difficulties in 2013, thanks to its good export tradition. The company also took measures in production and business, including improving its quality control system…In 2014, the company will further maintain its traditional partners abroad; take measures to enhance the quality of latex products at partners’ demand.

It is predicted that the price of rubber latex is likely to be higher than 2013. The Ministry  of Finance (MOF) has also issued a circular cutting the export tax rates on both natural and synthetic rubber exports.

According to the circular, the export tariff on all rubber exports will be fixed at 1 percent. This means that the tax on synthetic rubber exports is being reduced from 5 percent to 1 percent, while the tax on exports of natural rubber will also be 1 percent, after being 3 percent previously. This is seen as a favorable condition for Binh Duong’s export rubber industry to reap higher results in 2014.

Reported by Cao Son-Translated by K.T