Vietnam may join the International Tripartite Rubber Council, for coordination with other major producers on supply and stabilizing prices, a person familiar with the matter said Thursday.
The ITRC consists of three of the world's top natural rubber producing countries--Thailand, Indonesia and Malaysia.
It's holding a ministerial meeting in Kuala Lumpur Jan. 19.
"One of the issues on the agenda is expanding ITRC membership to include Vietnam and further strengthen the group," the person said.
He said ITRC officials will meet prior to the ministerial meeting to discuss the procedures and terms for bringing Vietnam into its fold.
Once that process is completed to the satisfaction of Vietnam and the ITRC, it will be put before the ministers for endorsement.
ITRC was set up to ensure co-ordinated action by rubber exporters so supply doesn't exceed demand and prices remain stable with growers getting remunerative returns.
"Vietnam is a key player in global rubber trade and ITRC believes any program to influence prices will be difficult to implement without its co-operation," said a commodities analyst in Singapore.
Vietnam has emerged as a major producer and exporter of natural rubber in the last few years and is expanding plantations further to increase output.
In December 2008, when rubber futures on the Tokyo Commodity Exchange fell to around Y100/kg amid weak global demand, the agency stepped in to reduce exports by 700,000 tons on year in 2009.
Prices did rise gradually even though the immediate impact of the program was limited as exports from countries such as Vietnam continued unhindered.
Vietnam's exports of natural rubber rose to 645,000 tons in 2009 from 619,300 tons in the previous year. Among the major producers, it is the only country where exports rose in 2009.
Vietnam has projected exports of 680,000 tons in 2010 and is expected to overtake Malaysia as the third-largest exporter in a few years.
Rubber plantation area in Vietnam rose by 30,000 hectares in 2009 and the country is expected to add another 30,000 hectares this year, taking the total to 678,600 hectares. Total acreage is expected to reach 800,000 hectares by 2015.
Currently, only around 400,000 hectares are under production as new plantations mature, Vietnam's rubber production is expected to rise significantly from an estimated 650,000 tons in 2009.
Vietnamese companies are also expanding plantation area in neighboring Cambodia and Laos where they expect to plant 100,000 hectares each eventually. They now own less than 2,000 hectares in Cambodia and less than 20,000 hectares in Laos.
(Source: irco.biz)
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