A 150 percent hike in rubber prices has sharply increased profits for the sector and pulled many companies out of the red.
Vietnam Rubber Group reported a 182 percent year-on-year increase in net profits to VND2.4 trillion ($103.4 million) on revenues of VND10.5 trillion, a 77 percent rise.
Its profits from core business activities were VND4.5 trillion as against a loss of VND2.6 trillion in the same period last year.
Its subsidiaries also reported excellent results.
Tan Bien Rubber Company saw net profits and revenues soar by 284 percent and 167 percent to VND120 billion and VND375 billion.
Ba Ria Rubber Company also reported triple-digit growth in profits to VND35 billion.
Dak Lak Rubber Company made a turnaround after losses a year ago, and was back in the black with profits of over VND76 billion.
A rise in both demand and prices has been attributed to the industry’s outstanding performance.
According to the General Department of Customs, earnings from rubber exports rose by 88 percent to $1.2 billion in the first half of this year.
Average export prices increased to over $1,680 per ton as demand recovered after the slump in early 2020 even as supply decreased due to the Covid-19 pandemic and rising crude oil prices.
ACB Securities forecast rubber prices to remain at $ 2,100 this year, 44 percent higher than last year’s average.