According to the Vietnam Rubber Association (VRA), the Ministry of Finance (MOF) is gathering opinions of businesses before zeroing export duty on rubber.
Making export toys at South Korea-invested Dream Plastic Co., Ltd., in Chau Son industrial park (Ha Nam province) __Photo: Danh Lam/VNA
On July 1, MOF issued Official Letter No. 8881, to gather opinions on reduction of current export duty rate of 1 percent on three rubber export items (latex, mixed and crepe rubber) to zero percent as a support for local rubber producers to overcome sharply decreasing rubber prices (VND 40 million/ton against the peak of VND 60 million/ton in 2011) and improve export competitiveness on the regional market.
In 2011, when the rubber prices reached the peak, MOF imposed an export duty rate of 3-5 percent. In the beginning of 2013, VRA proposed MOF to cut the export duty on rubber but received disapproval.
Due to a continuous decline in the rubber export market and prices, in November 2013, MOF issued Circular No. 157/2013/TT-BTC to down export duty on the above rubber items (under headings 40.01, 40.02 and 40.05) to 1 percent.-