Encouraging to increase rubber products towards creating higher added value
Due to the US - China trade war, some of Vietnam's export industries, including rubber, have also been affected. To solve the trade balance in rubber import and export, the rubber industry has encouraged to increase products towards creating higher added value.
The current rubber prices are at about $1.335 per ton, a decline of 18 per cent compared to 2017.
China is the largest importer of Vietnamese natural rubber with 65.3 per cent of total exports and is an important importer of rubber materials from Vietnam. There are about 70 per cent of China’s import volume being used for tyre manufacturing activities.
Due to the US - China trade war, Vietnam’s most affected export sectors include computers, furniture, automobile products and automobile tyres. Chinese products exported to the US that are related to Vietnam’s rubber industry are also likely to be affected. Therefore, rubber exports are expected to be low in the first quarter of the year due to the Chinese market’s decline.
In addition, the uneven quality of rubber products at Vietnamese factories make them cheaper than those from other countries. Vietnam mainly exports raw rubber while importing a large number of rubber products for deep processing since the production of local rubber has not met the demand of domestic manufacturers.
To solve the trade balance in rubber imports and exports and create an abundant supply of rubber materials for domestic production, the rubber industry has been encouraged to increase products with higher added value. Experts also stated that the rubber sector also needs to improve the quality and value of its products by applying advanced technology in production, expanding export markets and trade promotions.
Vietnam is one of the largest rubber exporters in the world, with products exported to 128 nations and territories. Vietnam Rubber Association reported that by the end of 2017 the country had 971.600ha of rubber trees with a yield of over 1.08 million tonnes, making up 8.3 per cent of the total world yield.
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.