VIETNAMS RUBBER EXPORTS UP ON TIGHT GLOBAL SUPPLY

Rubber latex was one of the nations seven export staples earning more than $1 billion a year, Thung said.

Increased export turnover was driven by a rise in rubber prices, up VND6-7 million ($375-$437) per tonne from last year. Average export prices in 2005 were $1,370 per tonne, compared to an average price of $1,163 per tonne in 2004.

Viet Nam now ranked sixth in rubber production in the world and fourth in natural rubber exports after Thailand, Indonesia and Malaysia, according to the International Rubber Association.

Vietnamese rubber was currently being exported to 20 countries, of which China was the leading importer. Chinas overall rubber demand was expected to increase 6 per cent per year by 2010.

Over the next five years, global demand for natural rubber was expected to increase at a rate of about 3.3 per cent annually, according to the International Rubber Search Group (IRSG).

By 2010, the worlds demand for natural rubber would reach 9.6 tonnes per year while production output was likely to hit only 9.3 million tonnes, a shortage of 300,000 tonnes.

Many rubber companies were expected to equitise in the coming months and make IPOs on the nations stock exchanges, according to the HCM City Securities Trading Centre.

Last Wednesday, Dong Phu Rubber Co made its IPO on the Ho Chi Minh City bourse, and Tay Ninh Rubber Co Ltd (Taniruco) was set to follow suit later this week.

Dong Phu Rubber Co, with chartered capital of VND400 billion ($24.9 million), sold 11,701,300 shares at a price of VND18,300 ($1.1) per share.

Taniruco has chartered capital of VND300 billion ($18.7 million) and will make an IPO of nearly 8.4 million shares.

Both companies posted high profits over the past three years. Taniruco alone has seen total revenues increase an average of 37 per cent per year and its after-tax profits an average of 53 per cent per year.

Source: Asia Pulse