Vietnam needs to expand its export market
Expanding the export market to reduce the dependence on the Chinese market is one of the necessary solutions for Vietnam's rubber industry to reduce the impact of the China – the US war.
In 2018, three main rubber groups reached over USD 6.2 billion
In 2018, natural rubber materials, rubber and wood products, furniture made from rubber wood, which are three main export product groups of Vietnamese rubber industry, had total export turnover reached above USD 6.2 billion, contributing 5.3% to the total export turnover of the whole country.
In particular, Vietnam's largest natural rubber import market accounting for 63% of total natural rubber exports in 2018 has been China. Some consumer markets such as Malaysia, India, Korea, Germany, etc., have accounted for about 2 - 6% in each country in the total volume of Vietnamese rubber exports. Thus, it can be seen that there is a big difference in the proportion of China and some other consumer markets, and the Vietnamese rubber market is also greatly influenced by China.
The need to expand the rubber export market
The China – the US trade war took place with direct impacts on our country's rubber industry. On 24 September 2018, the administration of the US President decided to impose a tax of $ 189 billion on imports from China, including wood products and parts of car. The tax rate increased to 25% by 1 January 2019 and could then be pushed up to 44% if China and the United States did not have any solution to solve this war.
Mr. To Xuan Phuc, member of Forest Trends, said that the trade war between the US and China will certainly have a direct impact on Vietnam's rubber industry. With nearly 70% of natural rubber used to serve the tyre manufacturing industry, the US imposition of high tariffs on Chinese auto parts exports to the US can cause much influence on China, thereby affecting Vietnamese rubber exports.
To minimize these risks, Vietnamese rubber industry is in need to expand the export market and reduce the dependence on the Chinese market. Although only accounting for 5.7% and 3.9% respectively, India and Malaysia can be two potential markets that Vietnam can target because both countries are developing quite strongly in automotive industry along with a number of other industries using rubber materials.
Rubber & Tyre Vietnam, The International Exhibition & Conference on Rubber Industry and Tyre Manufacturing anually held in Vietnam, is an ideal place for connecting, enhancing and expanding businesses. Please come to visit Rubber & Tyre Vietnam 2019, which will take place from 26th – 28th June 2019 at Saigon Exhibition and Convention Center (SECC) in Ho Chi Minh City.