Malaysia Spends RM150 Mln On Vietnamese Rubber To Meet Rising Industry Demand
By Vijian Paramasivam
PHNOM PENH, Nov 19 (Bernama) -- Malaysia procured 24,800 tonnes of Vietnamese rubber worth US$35.2 million (RM150 million) from January to October 2024 to meet the rising needs of the country’s diversifying rubber industry.
Yesterday, the Vietnam News Agency reported that Vietnam’s General Department of Customs disclosed that in October alone, Malaysia imported 7,260 tonnes of rubber valued close to (US$11.5 million (RM50 million), making it the second largest importer of the commodity after China.
BIMB Securities Sdn Bhd’s equity research analyst Nursuhaiza Hashim said Vietnam focuses on raw rubber production, with large-scale plantations and a growing presence in the global market.
She said that, in contrast, Malaysia has shifted towards a product-based industry with a significant emphasis on rubber products such as medical gloves and tyres, while its raw rubber production has declined over the years.
“In addition to gloves and tyres, Malaysia’s rubber industry also includes the production of footwear, latex products, general rubber goods and various industrial components.
“Each of these sectors demands specific types and grades of rubber, further driving the need for imports,” she told Bernama via email today.
Malaysia is a major rubber producer in the world, averaging 348,000 metric tonnes of natural rubber yearly, while it also imports rubber to fill shortage gaps.
According to the Malaysian Rubber Council, Malaysia exported rubber worth RM4.58 billion in the first half of this year, mostly shipped to China.
The council said the country also procured RM5.93 billion worth of rubber for domestic consumption, and most of the commodity was sourced from neighbouring Thailand.
Meanwhile, Vietnam’s Industry and Trade Ministry said the country exported 1.37 million tonnes of rubber worth (US$2.18 billion (RM9.4 billion) during the first nine months of this year.
According to the Vietnam Rubber Association, Vietnam is the third largest country in the world in terms of natural rubber supply.
The country exported 2.14 million tonnes, earning US$2.89 billion (RM12.4 billion) in 2023, and it forecasted rubber export to reach about US$3.5 billion (RM15 billion) by the end of this year.
Vietnam’s Agriculture and Rural Development Ministry has set a target to expand the rubber plantation area to 800,000- 850,000 hectares by 2030.
-- BERNAMA