kang
High yield rubber needed to sustain growth: analystsSaturday, October 3, 2009
Thanh Nien News (Hanoi)
Rubber companies are running out of land and need to plant a high yield breed if the industry is to maintain growth, said analysts with the local finance website Vietstock.
Despite the government efforts to increase rubber cultivation, rubber businesses are running out of land and have turned to renting space in Laos and Cambodia. Vietnamese rubber planters plan to open a total 200,000 hectares of rubber fields in the two countries, Vietstock analysts said last month.
However, the two governments are unsure as to whether the pros of gaining more rubber trees will outweigh the cons of losing forests to rubber cultivation, which also degrades the soil.
Therefore, Vietnam rubber firms need to cooperate to create a high-yield breed so that the industry can continue to meet domestic demand and retain its position among markets worldwide, Vietstock asserted.
Global positioning
Vietnam was the world’s fifth-largest rubber producer in 2008 after Thailand, Indonesia, Malaysia and India. The government now aims for local firms to be producing 1.2 million tons of rubber per year by 2020.
Southern Rubber Industry Joint-Stock Co. (CSM VN), Vietnam’s third-largest listed rubber company, said its pretax profit in the first nine months of this year may reach VND241 billion ($13.5 million), six times its original full-year profit forecast, the HCMC-based company known as Casumina said in a statement.
Trinh Vinh Quyen, an analyst at HCMC-based DongA Securities Co., told Bloomberg last month that “rubber stocks will rise as world prices increase and demand gains. I expect these [rubber] companies will have strong earnings this year.”
Reported by Tai Viet
Despite the government efforts to increase rubber cultivation, rubber businesses are running out of land and have turned to renting space in Laos and Cambodia. Vietnamese rubber planters plan to open a total 200,000 hectares of rubber fields in the two countries, Vietstock analysts said last month.
However, the two governments are unsure as to whether the pros of gaining more rubber trees will outweigh the cons of losing forests to rubber cultivation, which also degrades the soil.
Therefore, Vietnam rubber firms need to cooperate to create a high-yield breed so that the industry can continue to meet domestic demand and retain its position among markets worldwide, Vietstock asserted.
Global positioning
Vietnam was the world’s fifth-largest rubber producer in 2008 after Thailand, Indonesia, Malaysia and India. The government now aims for local firms to be producing 1.2 million tons of rubber per year by 2020.
Southern Rubber Industry Joint-Stock Co. (CSM VN), Vietnam’s third-largest listed rubber company, said its pretax profit in the first nine months of this year may reach VND241 billion ($13.5 million), six times its original full-year profit forecast, the HCMC-based company known as Casumina said in a statement.
Trinh Vinh Quyen, an analyst at HCMC-based DongA Securities Co., told Bloomberg last month that “rubber stocks will rise as world prices increase and demand gains. I expect these [rubber] companies will have strong earnings this year.”
Reported by Tai Viet
0 comments:
Post a Comment