Vietnam Plans to Hold 200,000 Tons of Rubber This Year
State-run Vietnam Rubber Group plans to buy up to 200,000 metric tons of rubber to support farmers this year, as prices have significantly fallen in the recent months.
The group will buy 100,000 tons of rubber using its own funds, and seeks to borrow VND1.5 trillion from the government to buy another 100,000 tons, said Thoi bao Tai chinh newspaper which is published by the Ministry of Finance.
“The prices of natural rubber have fallen from VND60 million/ton in mid-2008 to VND20 million/ton now, causing difficulties for farmers, and therefore the VRG should step in to buy, and will export them when the market to recover,” said the newspaper.
Local analysts forecast export demand will be weak this year and early next year.
Vietnam exported 116,000 tons of rubber valued at US$157 million in the first three months this year, down 6.4 per cent on year in terms of volume but down 46.3 per cent in terms of value, according to government statistical figures. (Financial Times)
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