Vietnamese Prime Minister Approved Master Rubber Plan

According to an article on www.bernama.com, "As many as 800,000 ha will be devoted to rubber plantations with annual latex production of 1.1 million metric tons by 2015 under a new plan approved by Prime Minister Nguyen Tan Dung, Vietnam News Agency (VNA) reported Monday [June 8].

The plan developing rubber cultivation to 2015 with a vision to 2020 will be based on market needs and on effectively exploiting the advantages of land and other natural resources in specific regions to ensure sustainable development, according to the government.

Under the plan, an additional 70,000 ha of rubber will be planted by 2010, raising the country's total rubber area to 650,000 ha and annual rubber latex output to 800,000 metric tons. By 2015, the export value of rubber products is expected to reach $1.8 billion. Five years later, the country's rubber cultivation area will be kept stable at 800,000 ha, while annual rubber latex output will increase to 1.2 million metric tons and the export value to $2 billion, the plan envisages.

Rubber cultivation will be focused in five major regions -- the southeast region, the central highlands region, the southern central coastal region, the northern central region and northwest provinces. The central highlands will grow an additional 95,000-100,000 ha of rubber, becoming the region with the largest new rubber plantations. The southeast region, which accounts for the country's largest rubber cultivation area at present, will plant an additional 25,000 ha.

Total investment outlay for the plan is estimated at 30 trillion VND ($1.76 billion). Under the plan, the government will continue to provide capital for research projects that will select and create new hybrid varieties of rubber. It will also fund projects to import rubber varieties of high yield and quality, and supply enough seeds for nurseries to meet production demand.

Enterprises will be encouraged to sign contracts with rubber growers to ensure stable consumption of latex. The plan seeks to increase investment in latex processing facilities and production of rubber products in cultivation regions. Trade promotion activities will be undertaken to expand export markets to boost sales of rubber products. The government will also encourage individuals and organizations to plant rubber, process latex and produce rubber products. The Vietnam Rubber Association has been advised to enhance its capacity to support and create favorable conditions for members, as well as protect their legitimate rights.

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