Despite just being set up in 2010, Asean Rubber Company rose to become one of the Top 25 rubber exporters in Vietnam in 2012. The company’s revenue in 2013 nearly doubled from that of a year earlier to VND810 billion (US$40 million). For a young business like Asean Rubber, such impressive growth was not easy, particularly in the current tough time. This proved the experienced and outstanding leadership of Director Le Thi Bich Tram, who has worked in the rubber industry for decades. Vietnam Business Forum interviewed her on this issue.Bich Thuy reports.
According to forecasts from experts, Vietnam’s rubber production may rise 1.5 percent to 995,000 tonnes in 2014. With this output, Vietnam will overtake Malaysia to become the third largest rubber producer in the world. As a leader of a top-rated rubber exporter in Vietnam, how do you assess this forecast?
After years expanding rubber farms in Vietnam, Laos and Cambodia, new rubber farms will harvest their first latex in 2014. This has pushed the natural rubber production output in Vietnam. The output is expected to rise to nearly 50 percent at the end of this decade.
According to many rubber research companies and industry experts, the demand for natural rubber is forecast to increase 4 percent in 2014 but the supply will outpace the demand. The global excess supply is projected at 366,000 metric tonnes in 2014, the fourth straight year with oversupply, compared with 336,000 metric tonnes in 2013 (source: The Rubber Economist, UK). Rubber inventories in China and Japan are also very high and are threatening the recovery of rubber prices.
Therefore, in my personal opinion, we do not need to be overexcited with the increased output, especially when the world economy has not recovered from recession. This has placed pressure on business and production operations of natural rubber companies like us. In 2013, we were amongst the Top 25 rubber exporters in Vietnam and we will maintain this position this year. And, if this is the case, I think, we are successful at this period.
The Trans-Pacific Economic Partnership Agreement (TPP) is being negotiated among 12 countries, including Malaysia and Japan – key rubber export markets of Vietnam. According to economic researchers, TPP can be concluded in the second quarter of 2014 and signed in the third quarter. So, has Asean Rubber prepared for TPP?
Among 12 countries negotiating the TPP countries, Malaysia, the US and Japan are key importers of Vietnamese natural rubber. Malaysia is the second largest importer of Vietnamese rubber after China, accounting for approximately 20.8 percent, followed by the US with 2.7 percent and Japan with 0.9 percent. Besides, Singapore, one of the 12 negotiating countries, has the presence of many world-leading rubber trading companies. The preferential tariff is a favourable factor and a positive element for boosting exports to this market.
Asean Rubber has gradually asserted its position on the rubber market in the country and in the world. In 2013, the firm made long strides in development and headed for sustainable development. Malaysian is a big market and Japan is also a high potential market. So, in the 2014-2015 period, Asean Rubber will focus on developing this market.
Currently, Asean Rubber is working with two largest tyre manufacturers of Japan, namely Bridgestone and Yokohama. With rich experience in providing natural rubber for large tyre producers in the world, I believe that we can meet their stringent requirements. In addition, I just returned from a business delegation accompanying the President on his official visit to Japan on March 2014. Together with the leaders of Vietnam Rubber Group, Asean Rubber was the only rubber company in this accompanying trip. We were also introduced and connected with some natural rubber importers in Japan. This was a good opportunity for Asean Rubber to expand the market.
To have high-quality inputs and ensure continued prestige among customers, how has Asean Rubber cooperated with rubber growers?
Asean Rubber is a trading company. We are not directly engaged in production. However, we also regularly exchange feedback on natural rubber quality from our customers – the end users – with rubber companies we cooperate with. At the same time, we also send our experts to automobile tyre manufacturers in the world to exchange experiences as well as discuss with Vietnamese rubber companies how to enhance quality. As they are very experienced in tending rubber trees and preliminary latex processing, our advice is extremely practical and valuable. We always fully convey our contributions to our suppliers with the hope of having better products.
It is known that you are very enthusiastic and active in social and charitable activities. Would you mind telling us something about this work?
Asean Rubber has been praised for its good expression of corporate social responsibility in 2014. This recognition to our benevolent efforts and deeds is a valuable encouragement to our company. This shows that we are moving in the right direction and we will continue with pro-community activities this year.
Recently, I was with the “Be the side of Vietnamese family” Programme organised by the Voice of Ho Chi Minh City People to assist eye surgeries for 800 poor patients in the largest city of Vietnam and surrounding provinces. By taking part in this programme, I hoped to help ill-fated people in the society. It is not simply the responsibility of an entrepreneur to the community, but this makes me feel happy when we can support and share with people facing difficulty.
Đăng ký: VietNam News
