Technical Rubber Producer in Vietnam

Along with Vietnam’s high economic growth over the past years, the demand of rubber for different industries and export is increasing. This requires domestic enterprises to invest and expand the production scale in order to raise Vietnamese rubber products’ competitiveness in the context of global integration. 

 

Catching up with the market’s trend, Thai Duong Rubber Joint Stock Company, one of rubber producers in Vietnam, has invested in a new facility in the My Phuoc III Industrial Park to expand the production scale to timely meet customers’ increasing demand. On schedule, the phase 1 of the company will be completed and put into operation early next year. The new factory is expected to produce high-quality rubber products, which meet technical standards of the EU, US and Australia, to serve the water supply sector.

 

During the past time, Thai Duong Company has gained remarkable achievements. However, the global financial crisis in the first months of 2008 has also considerably impacted the company’s production activities as the prices of material rubber and output chemicals was on the rise while the market’s demand was on the fall.

 

According to Nguyen Van Tho, the company’s managing director, although the country’s rubber industry has obtained some achievements in recent years, the oil refinery industry is not developed. Almost all materials like synthetic rubber, chemicals are still imported. As a result, competitive advantages of Vietnamese rubber and plastics producers are lower than foreign rivals.

 

Since the beginning of this year, because the prices of materials, chemicals increased continuously, the production was stagnated, resulting in a revenue decrease among rubber producers.

 

Vietnam has huge advantages in raw materials, but the domestic rubber industry uses only 15 per cent-20 per cent of the total. The remaining is mainly for export.

 

For a long-term, Tho said, Vietnam should invest more in post-harvest technologies. In detail, the country should keep an eye to the production of synthetic rubber and chemicals for the domestic production in order to reduce the dependence on export materials.

 

In addition, it is necessary to offer more policies on preferential loans to help producers expand their production and maximally take advantage of natural rubber sources instead of exporting the raw materials outbound.