Hanoi (VNS/VNA) - Even though rubber export volumeadvanced by 6% year-on-year in the third quarter of 2022, according tocalculations from the General Department of Customs, export value saw a declineof about 2% because of lower rubber prices.

Rubber prices decreased during the period as demand slowed in China due to hotweather disrupting production and prolonged COVID-19 prevention measuresaffecting production activities.

This development was reflected in the business results of the rubber industrygroup. According to a survey of 13 listed companies on the Ho Chi Minh StockExchange (HoSE), the Hanoi Stock Exchange (HNX) and the UPCoM, there were eightcompanies posting reduced profits and only three witnessing gains, whileanother two suffered losses.

Vietnam Rubber Group (HoSE: GVR)'s consolidated profit after tax plunged 35.2%on-on year to 993.86 billion VND (40.09 million USD) in Q3/2022. The companyexplained that the general economy fluctuated toward a downward trend, causinga decrease in sales during the period along with a fall in selling prices whileexpenses for input surged over the same period last year.

In addition, subsidiaries made provisions for the impairment of investments inLaos due to the depreciation of the Lao's currency kip.

For the first nine months of the year, the company reported a drop of 8.6% inprofit after tax to nearly 3.5 trillion VND.

Similarly, Phuoc Hoa Rubber JSC (HoSE: PHR) experienced an increase in inputcosts and cost of goods, dragging its gross profit margin down by 20%, said thecompany. Therefore, its profit after tax in Q3 subdued 17.65% over last year to140.46 billion VND.

The profit after tax of Tan Bien Rubber (UPCoM: RTB) plummeted 90.1%year-on-year to 15.78 billion VND. The company said that its revenue fell 35.25%to over 75 billion VND due to a decrease of 1,900 tonnes in sales, and incomefrom the liquidation of rubber plantations also edged down while all kinds ofexpenses rose.

Some other enterprises witnessed gains in profits such as Doruco (HoSE: DPR),Horuco (HoSE: HRC), and Inruco (UPCoM: IRC). However, the growth did not comefrom the main business. Horuco's profit after tax was up 28.6% to 738.5 millionVND thanks to the cut in management costs.

Meanwhile, consolidated profit after tax of Doruco reached more than 97.5billion VND, a 28.2% and Inruco's was over 19 billion VND after losing 6billion VND in the same period last year, both thanks to liquidation of rubbertrees.

The November strategy report of ACB Securities Company (ACBS) showed thatnatural rubber futures prices on the Tokyo Commodity Exchange slid by 4.56%amid concerns about oversupply and slowing demand from China, while many citiesin this country set up new lockdowns.

Recently, the city of Chongquing, one of China's largest auto manufacturinghubs, issued an order to cut electricity to save energy amid unprecedented heatwaves that have forced a number of factories to close.

Moreover, global economic growth slowed down after central banks raisedinterest rates to curb inflation, and chip shortages pulled demand for rubberproducts such as auto parts, clouding the rubber demand outlook.

ACBS expected that rubber prices are unlikely to rebound due to lower demand./.