Rubber exports in Vietnam fell by 1.3% year-on-year to 770,000 tons in 2011
Hoa said that Vietnamese companies have been trying hard to promote rubber exports and have abandoned the supply of domestic producers. By 2020, domestic rubber demand is expected to increase from the current 16% of production to about 30%.
The Vietnam Rubber Association requires exporters to increase their supply to domestic producers so that domestic producers can export finished products with higher added value rather than simply exporting latex, which previously sold more than half of the latex to China.
Hoa said that the drought and rainfall in the early part of this year also interfered with production. Therefore, Vietnam's rubber production will not increase substantially throughout the year, but it will hit 770,000 tons as planned, or 6.4% from last year.
The Natural Rubber Producing Countries Association (ANRPC) said last month that global rubber production in 2010 may increase by 5.3% to 93.89 million tons, which is lower than the earlier estimate of 6.3% due to heavy rains cutting yields.
Hoa also said that due to the government's restrictions on overseas sales, Vietnam's rubber exports to China have decreased by nearly 10% so far this year, so Vietnamese exporters are trying to sell latex through official channels.
According to government data, in the first 10 months of this year, Vietnam exported 598,000 tons of rubber, an increase of 6.8% over the same period of last year, while exports soared by 94.5% to nearly US$1.7 billion.
In addition, Hoa said that in order to increase rubber production and exports, from now until 2015, Vietnam plans to expand the rubber planting area in the Central Highlands and Linhai Province, and the total area is expected to increase by 178,000 hectares (440,000 acres).
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