The Hainan Natural Rubber Industry Corporation (HNRIC), China's No.1 rubber producer, signed a framework cooperation agreement with the Vietnam General Rubber Corporation on Thursday.

The move is regarded as a big step forward in rubber trade cooperation between China and Vietnam, said Wu Yarong, president of the Chinese rubber giant, which is based in China's southernmost island province of Hainan.

"The cooperation between the two companies will also help the two countries play a more important role in the global industry of natural rubber, giving them more say in the natural rubber price and thus protecting their interests," said Wu.

The cooperation between the two will cover marketing, research and development, and information sharing, said Wu.

HNRIC will provide its state-run Vietnamese partner with E-commerce service to help it open up the rubber market in China.

Founded earlier this year, HNRIC has integrated all the state farms in Hainan, where 280,000 tons of natural rubber are produced annually, accounting for half of China's total output.

With 40 subsidiaries and 39 farms, Vietnam General Rubber Corporation (VGRC) is the largest rubber company in Vietnam. Its annual natural rubber output is more than 300,000 tons, accounting for 70 percent of the country's total output.

"Vietnam is the world's sixth largest rubber producer after China and our current target is to top three in the world's rubber export," said VGRC's general director, Le Quang Thung.

"China is the largest rubber consumer in the world and I believe that we have large room for cooperation," said Le.

China consumed 1.85 million tons of rubber in 2004, 1.26 million tons of which was imported.

Source: Xinhua