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China Is Leading Rubber Importer From Viet Nam

3/26/2009 - China was Viet Nam's leading rubber importer among 70 countries and territories, and this is set to continue this year, said the national rubber industry's annual report for 2008. Mainland China last year imported $952.7 million worth of rubber products, accounting for 56 percent of the country's total rubber exports. Other importers like South Korea, Malaysia and Taiwan accounted for an average of 3 to 5 percent. Last year also saw a sharp increase in rubber exports to Italy and Germany, up 38 percent and 14.7 percent, respectively, over 2007. The Czech Republic last year posted the highest increase in rubber imports from Viet Nam at $8.3 million, a 50 percent increase over 2007. However, Viet Nam's rubber exports to the U.S., the world's second biggest rubber market, fell 20 percent year-on-year to $30.5 million. Industry officials attribute the fall in the U.S. market to shrinking demand in the troubled automobile industry, the quality of Vietnamese rubber products and an ineffective distribution system. World demand for rubber in 2009 was forecast to be lower than last year because of the global economic crisis that has reduced consumption of industrial and agricultural products including rubber. China will continue to be the world's biggest rubber importer. Over the last two years, China has seen the highest growth rate of 39.27 percent in rubber imports, and its imports from Viet Nam have also risen by 26.59 percent. According to the International Monetary Fund (IMF), China's economy was expected to grow by 6.7 percent this year. At this growth rate, China will still be seen as a potential market for rubber exports. Next comes South Korea with an expected GDP growth rate of 3.4 percent in 2009. South Korea's imports were set to grow 28.72 percent this year, making it another promising buyer of rubber from Viet Nam. The Czech Republic was another potential market for this year. Although its import value has been small at $8.3 million in 2008, it has recorded the highest increase in imports of Vietnamese rubber over the last two years. This European country's economy is forecast to increase by 3.3 percent in 2009. The Ministry of Agriculture and Rural Development plans to expand the country's rubber plantations to 640,000 hectares with an output of 680,000 metric tons this year. Viet Nam now becomes the world's fifth biggest rubber producer after Thailand, Indonesia, Malaysia and India.

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