Monday, October 15 2018

VietNamNews

VN rubber production industry to be impacted due to US-China trade war

Update: September, 27/2018 - 16:42
Workers harvest latex at the Phú Riềng Rubber Plantation in the southern province of Bình Phước. — VNA/VNS Photo Thế Anh
Viet Nam News

HÀ NỘI — The latest US tariffs on Chinese auto parts was likely to hit Việt Nam’s rubber industry, said the head of the Vietnam Rubber Association (VRA)’s Rubber Development Consulting Division Trần Thị Thúy Hoa.

Hoa told Lao động (Labour) newspaper that China was a key importer of rubber materials from Việt Nam, and about 70 per cent of its import volume was used to produce tyres.

Authorities and the VRA have been advising groups involved in the industry to limit supply and production expansion.

These recommendations may help larger plantations, but smaller companies are continuing to increase output.

Hoa said the supply from small-scale rubber plantations accounted for nearly 62 per cent of the country’s total output.

“This group’s knowledge of supply and demand remains limited so the VRA and relevant authorities will need to deal with these difficulties to manage supplies.”

According to Hoa, supply is currently higher than demand so the price had fallen, causing difficulties for the whole supply chain, including hundreds of thousands of workers and about 260,000 rubber growing households.

US President Donald Trump on September 14 directed aides to proceed with tariffs on another $200 billion of Chinese goods, including furniture and auto parts. — VNS

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