According to the Viet Nam Rubber Association, the ministry issued a document on 1 July 2014 to invite opinions about cutting the rubber export tax to zero from the current 1 % (applied on products coded HS 4001, 4002 and 4005) in response to the association's petition.
The rubber industry has been facing difficulties during the past few years due to oversupply in the global market and plummeting international prices, which hit the local farmers and companies hard.
Farmers in the central and south-eastern provinces have reportedly cut down more rubber trees due to a significant fall in the natural rubber price. The price for a kg of natural rubber latex decreased by half over last year's price to roughly VND15,000 or USD 0.7.
According to the statistics of the Ministry of Agriculture and Rural Development, in the first six months of this year, about 337,000 tonnes of rubber were shipped abroad, worth USD 644 million, 12 % lower year over year.
The Vietnamese rubber prices declined between 2012 and June 2014 due to oversupply in the world market, according to thitruongcaosu.net website.
The average rubber export prices in the first five months of this year fell by 29 % year over year to USD 1,842 per tonne, 60 % lower than the peak price in February 2011.