volume of rubber exports via border to China drops

HCM City (VNA) – The volume of rubber exports via border to China has
dropped, according to the general secretary of the Vietnam Rubber Association.

Tran Thi Thuy Hoa said China applied trade barriers to limit Vietnamese exports
over the border in March.

Under the new regulation, only small volumes of exports can be sent via the Mong Cai
or Luc Lam border gates in Quang Ninh province and payments must be made via a bank
and not in cash.
Of the country’s 208 rubber exporters, 165 companies trade with China
mostly via the border.

“Although Vietnam exports rubber to about 61 countries, including the US ,
Europe and Japan , nearly 70 percent of our exports are to China ,” Hoa
said.

China consumes more than 2.5 million tonnes of natural rubber latex each year,
accounting for 26 percent of the world demand.

But the country only produces 500,000 tonnes a year, and imports the rest.

Hoa said domestic companies should improve the quality of rubber exports to
China .

In addition, the Vietnam Rubber Association should work with its counterparts in
Thailand , Indonesia and Malaysia , China ’s main rubber suppliers, to
exchange information on demand and prices.

Vietnamese authorities should also announce changes of China ’s trade policy
and help businesses map out appropriate business strategies.

Vietnam earned 357.2 million USD in rubber exports in the first six months of
the year, of which 233.9 million USD came from China , according to the Ministry
of Industry and Trade.

Exports to China in the first half of the year increased by 6.3 percent,
compared to the same period last year, while exports to other markets dropped
dramatically.

Vietnam ranks fourth worldwide after Thailand , Indonesia and Malaysia in
rubber exports.-Enditem