Tuesday, June 19, 2007

Vietnam firm to grow rubber trees in Cambodia

HANOI, June 19 (Reuters) - A small Vietnamese rubber firm that has applied to list on the stock market , plans to grow rubber trees in Cambodia next year to expand latex output, a company official said on Tuesday.

Tay Ninh Rubber Company (Taniruco), based in the southern province of Tay Ninh bordering Cambodia, has been finalising plans to receive Cambodian land to grow 10,000 hectares (24,710 acres) of rubber trees, the company official said.

"We may not be able to start planting this year," said the Taniruco official, who asked not to be identified. "But we need to do site clearance and other work so planting could start in the next rainy season."

Rubber trees require good water supply so they are often planted during the rainy season. Rains fall in Cambodia during the wet season between April and October, similar to Vietnam's southern region, home to most of the country's rubber trees.

Vietnam and Cambodia are seeking ways to take advantage of rising rubber prices. Vietnam is the world's fourth-largest natural rubber exporter but it has limited land while Cambodia's rubber industry is not developed.

Taniruco is a small rubber exporter, shipping just 14,000 tonnes of rubber last year, compared with 708,000 tonnes exported from Vietnam in 2006.

Vietnam would export 800,000 tonnes of rubber this year. It aims to produce 700,000 tonnes of rubber by 2010 from 550,000 hectares (1.36 million acres) under plantation, including new areas in Laos and Cambodia.

Taniruco's rubber expansion in Cambodia is part of a larger drive by its parent firm, Vietnam Rubber Group, the country's largest producer and exporter of natural latex, to grow 100,000 hectares in Laos and 100,000 hectares in Cambodia.

"In the longer run we will build a facility right in Cambodia to process the latex tapped there so we could export rubber products but not just raw latex," the company official said.

Operation details would be finalised later, he said.

"All the 10,000 hectares of trees cannot be planted at once and we will work out our detailed operation while trees are growing," he said, declining to say how the Cambodian output would add to Taniruco's overall production.

It takes between five and seven years before rubber trees can become productive to provide latex.

Taniruco plants rubber and processes latex for domestic markets and exports.

In December 2006, the firm raised about $36 million from its IPO where it sold nearly 8.4 million shares held by the state at an average price of 68,341 dong ($4.2).

On May 28 Taniruco submitted an application to list its shares on Ho Chi Minh Stock Exchange that has already been trading shares in Hoa Binh Rubber Co. and Danang Rubber Co. .

Shares of the firm rose to 137,000 dong ($8.5) each on the unregulated, unofficial markets last week, from 110,000-112,000 dong in May before it applied for the listing.

The firm was valued around $255 million.

Taniruco said its net profit last year jumped 50.5 percent from 2005 to 143 billion dong ($8.9 million). ($1=16,122 dong)

5 comments:

Anonymous said...

These fucken Vietcong didn't rob enough land from Cambodia and now these Vietcong force our beloved Samdech HUN SEN to give them more land to grow rubber trees and cashew nut trees!

I wonder why our beloved Samdech HUN SEN is so stupid to grow trees including the rubber trees! I remembered the Global Witness said our beloved Samdech HUN SEN love to cut down trees and destroying Cambodian forest! ahahhahhahhah

Is this another Vietcong know how trying to teach our stupid Samdech HUN SEN? ahahhahhahahh! I guess our beloved Samdech HUN SEN never stop learning and taking note! Ahahahahahahahh!

Anonymous said...

We will have a different contracts once the regime changes. We are hoping that will be coming soon.

Cheyo Koun Khmer

Anonymous said...

youns (vietnamese) are the China's
ethnic people, so youns culture and
their old characteristic letters are the
same as those of Chinese

No wonder that the tradition of this Chinese
ethnic people(youns called by chinese) is that :
- vietnamese men in in any country, most
of them are thiefs or robbers
- and vietnamese women in in any country,
most of them are prostitutes

Anonymous said...

Give them an inch, they take a mile!

Anonymous said...

Reading the comments, one wouldn't help but wonder why cambodia and cambodians are so backwards. Just a bunch of dumb statements. Get educated before posting such stupid comments.