Updated  
February, 27 2012 10:18:56

Rubber trade with China booms

 

Workers at a rubber company process rubber latex in Tay Nguyen central highland province, a key export to China. — VNA/VNS Photo Trong Duc
HCM City — Unofficial, small trade border transactions continue to flourish in Viet Nam's rubber export to China although their number has fallen recently, industry insiders say.

Rubber demand and prices have increased in the first months of this year, and this has enabled Vietnamese enterprises to reduce their dependence on small-scale border transactions, said Dinh Van Tien, head of the Viet Nam Rubber Group's Import-Export department.

Many Chinese firms were also choosing to import from companies making high quality products, he added.

Large companies with modern technology typically export their products to the U.S, EU, Japan, India and South Korea, Tien said.

"Official export is the best way to ensure long-term business and limit risks in payment," he said.

Tran Thi Thuy Hoa, general secretary of the Viet Nam Rubber Association told the Sai Gon Tiep Thi (Sai Gon Marketing) newspaper that rubber export to China through small trade has fallen of late, with many members announcing they are now able to officially export rubber to Chinese partners.

Last year, as many as 165 of a total of 208 companies engaged in exporting rubber to China were dependent on small trade.

"We are focusing our production on long-term contracts," said Huynh Tan Sieu, head of Binh Long Rubber Limited Company's planning and investment department.

He said administrative procedures with Chinese traders at the Luc Lam Border Gate were very simple, but the same could not be said of Chinese trade policy.

Chinese authorities apply a tax of 25 per cent on official rubber imports but nothing for small trade transactions.

While Vietnamese enterprises would like to engage in bigger transactions, small trade was the preferred choice of Chinese enterprises, Sieu said.

"In fact, Chinese authorities can control this (informal trade) in a very short time. Then everything would become normal," said Le Van Xuong, an official with the Binh Long Rubber Company.

The current situation offered no incentives for small companies to upgrade their technology because all their products can be sold through small trade," he said.

Meanwhile, the General Customs Department reported that rubber exports to China in the first two months of the year declined 8.8 per cent compared to last December.

The department said it has recorded shipments of around 70,000 tonnes at US$2,746 per tonne.

China is the biggest importer of Vietnamese rubber importer, accounting for 62 per cent of exports. — VNS

Send Us Your Comments:
Name:
Your E-mail address:
Title:
 

VietNamNews may edit your comments and not all emails will be published.

Highlight

Chinese drilling rig pulled out of Vietnam's waters Chinese drilling rig pulled out of Vietnam's waters

At 6:30pm on July 16, China's oil rig Haiyang Shiyou – 981 was 41 nautical miles from its previous position and out of Viet Nam's exclusive economic zone and continental shelf, about 163 nautical miles southwest of China's Hainan island, reported the Viet Nam Coast Guard High Command.  

School closed for torturing autistic students School closed for torturing autistic students

City authorities have shut down an illegal school for autistic children after it was found to be torturing its students.

Teachers question city's proposal to use e-books 1    Teachers question city's proposal to use e-books

E-books would replace printed textbooks in the first to third grades in HCM City for the upcoming schools year under a new proposal, the vice chairman of the city People's Committee Hua Ngoc Thuan has said.

Beer plant left unfinished Beer plant left unfinished

A beer plant under construction in the centre of Ha Tinh City has become a pasture for local residents to graze oxen.

Noi Bai unveils first sleeping pods Noi Bai unveils first sleeping pods

Vietnam Airlines Tourism Company (VATC ) has installed the first ever sleeping pods in Noi Bai International Airport to serve the passengers.