Vietnam has invited investments from the Indian rubber industry and benefit from the vibrant sector in that country.
Currently, Vietnam consumes only 15 per cent of the over 9,00,000 tonnes produced in the country.
A delegation of Vietnam Rubber Association led by its Chairman Tran Ngoc Thuan visited the country recently and held talks with members of the All-India Rubber Industries Association.
India is one of the largest importers of Vietnam rubber. In fact, Vietnam has emerged as the second largest exporter of rubber to India after Indonesia.
Vietnam’s rubber imports to India increased to 51,273.13 tonnes in 2012-13 from 28,113.95 tonnes in 2011 -12, up 82.38 per cent.
Vietnam is fast emerging as a leading producer of natural rubber. The productivity in Vietnam at 1,707 kg/hectare is only second to India’s top ranking productivity of 1,823 kg/ha and is much higher than average of 1,442 kg/ha average in ANRPC countries.
According to Niraj Thakkar, President of AIRIA, Vietnam has planned a major fillip to its domestic rubber manufacturing and targeted to produce 1.2 million tonnes and increase domestic consumption from the current 15 per cent to 40 per cent.
Vietnam has asked for strengthening business ties with the Indian rubber industry and help scale up rubber manufacturing, he said.
The Vietnam Rubber Group has developed many industrial parks and the Chairman invited Indian rubber products manufacturers to Vietnam for closer ties in setting up rubber manufacturing industry and benefit from the ample natural rubber production.
“We are working out the feasibility of a delegation to Vietnam soon,” Thakkar said.
According to the Government, in view of rising Indian private sector investments and growing trade, bilateral trade between India and Vietnam has grown to $6.1 billion in 2012-13 and is likely to cross the target of $7 billion by 2015.