Rubber export seen at US$1.5 billion

By Ngoc Hung - The Saigon Times Daily HCMC – The nation expects to beat this year’s rubber export target of US$1.5 billion this year given the rising rubber prices on the world market, according to the Vietnam Rubber Association (VRA). Vietnam in the first nine months of 2010 obtained US$1.42 billion in rubber export revenue. VRA said that rubber supplies from large exporters were shrinking due to unfavorable weather while rubber demands of China and India remained high. As a result, rubber prices on the global market rocketed to US$3,270 per ton in September, up 250% against the 2009 average figure. Meanwhile, the Association of Natural Rubber Producing Countries predicts the rubber output worldwide at around 9.5 million tons this year, increasing by 6.3% against 2009. However, the output will decrease from 2011 as many countries will replant rubber trees and natural rubber prices will stay high then. China, India and Malaysia are leading rubber importers, accounting for 47% of the total global rubber consumption. In 2009, Vietnam had the rubber growing area of 640,000 hectares, exported around 680,000 tons worth over US$1.2 billion to 70 markets. Under the Government’s scheme, Vietnam will grow 800,000 hectares of rubber by 2020, reach the latex output of 1.2 million tons and obtain export value of US$2 billion.