31st Sea Games - Vietnam 2021 Covid-19 Pandemic
Home / Economy / Trade - Service
Vietnam Rubber Group fears nCoV may erode demand from biggest buyer China
Ngoc Thuy 16:11, 2020/01/31
The company is concerned that demand from China, which accounts for half of the group’s shipments of latex, will fall.

Vietnam’s top rubber producer Vietnam Rubber Group (VRG) is actively pursuing buyers outside of China on fears that the coronavirus will erode demand from its biggest customer, Bloomberg reported.

 Illustrative photo.

VRG, the world’s third-largest listed producer of rubber, is looking for new markets and is considering cutting export prices, a person familiar with this matter told Bloomberg, asking not to be identified as the matter is private. The company is concerned that demand from China, which accounts for half of the group’s shipments of latex, will fall, the person said.

The rubber industry has been roiled this week as the spread of the virus in China clouds the outlook for global growth and especially auto production and tire demand. More than a dozen Chinese provinces announced an extension of the current Lunar New Year holiday by more than a week, with carmakers from Toyota Motor Corp. to General Motors Co. saying production will be halted through at least February 9.

VRG shares slumped 4.4% in Hanoi on Friday, poised for a second day of decline after markets resumed trading following the Lunar New Year holiday.

The company exports about 70% of its rubber output. Most shipments to China are natural rubber, while rubber products account for a small portion.

About 70% of all Vietnamese rubber exports goes to China, according to Vietnam’s customs data.

TAG: Vietnam Rubber Group nCoV coronavirus China latex Lunar New Year Tet Toyota General Motors Bloomberg
Other news
20:05, 2023/05/26
Vietnam set for robust economic growth in 2023: Experts
The country’s economic performance next year will remain solid despite strong headwinds.
14:45, 2023/45/19
Vietnam calls for int’l support in green development
Vietnam would not sacrifice social advancement, equality, and the environment for economic growth.
13:45, 2023/45/17
Switzerland to support Vietnam’s transition to green economy
Vietnam encourages Swiss investment in high-priority fields such as finance banking, insurance, manufacturing and processing, pharmacy, renewables, and tourism.
16:27, 2023/27/12
Vietnamese Govt to restructure real estate, bond markets in 2023
The main objective for Vietnam in 2023 remains to ensure stable macroeconomic fundamentals, contain inflation, and boost growth.
14:41, 2023/41/10
Vietnam strives to become developed country by 2050
The average GDP growth should be around 7% for 2021-2030, and GDP per capita would reach US$7,500 by 2030.
21:55, 2023/55/06
Vietnam targets GDP per capita at US$32,000 by 2050
The country by 2030 will become a developing country with modern industrial sectors and reach the upper-middle income status.