Many rubber companies reported higher profits in the fourth quarter of last year as export prices rose sharply.
The Vietnam Rubber Group Joint Stock Company’s gross profits were up 27 percent year-on-year to VND2.1 trillion on revenues of VND7.46 billion ($324.3 million), up 20 percent.
The Thong Nhat Rubber Joint Stock Company reported a 250 percent rise in profits to VND6 billion as revenues more than doubled to VND32 billion.
Hoa Binh Rubber Joint Stock Company saw a similar rise in profits to VND19 billion, and Dong Phu Rubber Joint Stock Company said it was up 6.8 times to VND278 billion.
The rubbers industry saw profits surge since mid-2021 even as the Covid-19 pandemic peaked, thanks to the sharp increase in latex prices.
According to the General Department of Vietnam Customs, rubber exports rose by 37.5 percent to $3.28 billion in full-year 2021, making Vietnam the third-biggest exporter. It sells rubber to over 80 markets, including China, India, South Korea, Germany, and the U.S.
The Vietnam Rubber Association expects global rubber prices to keep increasing sharply in 2022-24 because of declining supply.
But the Agency of Foreign Trade does not concur with this assessment, saying prices would continue to rise only in the short term as many countries grapple with the Omicron variant of Covid and cut auto production.