According to Vietnam daily express on August 28, the head of a company specializing in rubber planting and export in Ho Chi Minh City said that in the first six months of this year, rubber export prices fell continuously, making the company lose nearly vnd 200 billion (1 yuan is about vnd 3446). Last year, the price of rubber juice was 9.6 million vnd per ton, but by the end of August this year, it was only 4.8 million vnd per ton.

The head of the company said, "in order to maintain, the enterprise had to take part of the profits from other fields to subsidize the rubber business." In the first six months of this year, the company exported only 830 tons, a decrease of 51% compared with the same period last year. All along, 80% of the company's rubber has been exported to China.

The profits of many other rubber companies have also shrunk sharply. According to the comprehensive financial report of Vietnam Tongfu Rubber Co., Ltd. in the second quarter, the company's after tax profit in the first six months of this year was vnd 74.8 billion, a decrease of 52% compared with the same period in 2013. The main reason for the low profit is that the price of rubber decreased by about 30% compared with the same period last year; In the second quarter, the average sales price was only vnd 39.3 million per ton, much lower than expected, and significantly lower than vnd 55.7 million per ton last year.

Vietnam's uni president Rubber Co., Ltd. earned only vnd 30.8 billion this year, compared with vnd 73.8 billion in the same period last year. In the first half of this year, the revenue of rubber juice was only vnd 22.9 billion, down 46% compared with the same period last year. It is said that the company's after tax profit in the first six months was only vnd 11.3 billion, a decrease of 55.3% compared with last year. Therefore, the unit has passed a resolution to reduce this year's planned indicators, reduce the turnover from vnd 119 billion to vnd 93.3 billion, and reduce the profit from vnd 27 billion to vnd 15 billion.

According to the person in charge of the company, the main reason for the decrease in the revenue of the rubber business is that the market fluctuates and the price drops sharply, and Vietnam unified Rubber Co., Ltd. has not signed a fixed price term agreement with rubber importing enterprises. According to the statistics of Vietnam's Ministry of agriculture and rural development, the rubber export volume in the first seven months of this year was 451000 tons, a year-on-year decrease of 10%, and the export volume was US $828 million, a year-on-year decrease of 32.3%.

The main markets of Vietnam's rubber exports, such as China, Japan and Singapore, have significantly reduced their export volume. Among them, the Chinese market decreased by more than 50%. The average price of rubber juice of Vietnamese enterprises fluctuates from 39 million to 40 million Dong per ton.

Faced with the continuous price downturn, rubber growers in some parts of Vietnam can no longer afford it, and some are cutting down rubber trees. In the Denong area alone, according to statistics, local farmers have cut down a total of 359.39 hectares of rubber, which may be as much as 212 hectares in Deya County, 83 hectares in Deshuang County, 32 hectares in Suide County and 23.5 hectares in rongnu county. Some growers even cut down the new rubber trees that have been planted in the whole garden for 4-6 years.

Source: China Daily