VIETNAM: Rubber processors stretch for higher exports by expanding technology

The rubber industry needs to upgrade its processing

technology to diversify products for export in the

coming years, said the Ministry of Science and

Technology.

An increase in the number of rubber farms and the

exploitation of rubber latex has not gone hand in hand

with an upgrading of processing technology, which is

key to producing higher value exports, according to

the ministry.

In 2006, Viet Nam’s rubber production was 707,000

tonnes, an increase of 15 per cent compared with that

of the previous year. Its export revenue in 2006 was

US$1.3 billion, up by 60 per cent from 2005.

The industry’s focus on tapping rubber latex and

exporting raw rubber has resulted in low export

revenue. The main products have been tires for

bicycles, motorbikes and automobiles, which do not

fetch competitive prices on the world market.

The ministry is searching for a sustainable

development strategy to produce diversified, high

quality rubber items for export.

Aware of the increasing demand for high quality rubber

products on the world market, companies are investing

in technology to produce medical rubber items and

products such as condoms and gloves.

Toward this end, farms have improved their processing

methods and transplanted high quality rubber hybrids.

The country’s 30 rubber processing mills are able to

produce 210,000 tonnes of rubber latex a year.

Ministry officials want that figure to double to

400,000 tonnes a year by 2020.

Rubber latex productivity has increased from 0.8 tonne

to 1.75 tonnes per hectare as farms use advanced

farming methods.

The government has mapped out a plan to expand rubber

production areas from 500,000 hectares in 2006 to one

million hectares in 2015. It is looking to increase

rubber farms to 200,000 hectares in Laos and Cambodia

as well.

The development plan will help the industry produce

1.5 million tonnes of natural rubber latex and 1.5

cubic metres of rubber timber by 2020.

Rubber has become one of Viet Nam’s major exports,

earning several hundreds of million US dollars,

alongside rice and coffee.

(Syed Rashid Ali, Karachi, Pakistan)