The Viet Nam Rubber Group has set a target of earning a pre-tax profit of US$188 million this year, according to the General Director of the group, Le Quang Thung.

This year’s target is lower than last year’s US$229.4 million because of falling demand and lower prices brought on by the global financial crisis.

The world’s economic slowdown has made a significant dent in the global rubber industry. It has caused a slash in demand for rubber tires at a time when declining crude oil prices have reduced the cost of synthetic rubber.

The price for a tonne of rubber has dropped by 50% in the last few months, from US$2,645 to about US$1,300.

The domestic rubber industry is planning to cut rubber exports this year.

According to the Viet Nam Rubber Association, exports of rubber for 2009 will be reduced by 31%.

Last year, the country exported 645,000 tonnes of rubber, or 97% of its total output, down 9.8% from a year earlier.

Vietnam’s main rubber buyers are mainland China, the Republic of Korea, Taiwan, Singapore, Germany, the US and Japan.

Experts forecast that the rubber market will bounce back in 2010. Viet Nam has set targets to export 900,000 tonnes of rubber, worth roughly US$2 billion. This would result in an annual growth rate of 13.4% by 2010. (VNS)