The Fund operates based on the principle of not for profit purpose to promote mutual financial support between VRA’s members, to contribute to overcoming, minimizing damage and risk, stabilizing and stepping-up rubber production exports and supporting financial activities of the Association as defined in the Regulation of the Vietnam Rubber Association. Its Fund is formed from the contributions of members and from other legal income. Every year, based on market movements and business efficiency of natural rubber commodity, the Management Council of the Fund reviews and submits to the Executive Committee of the Vietnam Rubber Association for decision on contribution that must not exceed 1% of revenues from rubber export and trustee. If rubber prices fell sharply, business is no longer profitable, no contribution is collected.
So far, after nine years of establishment and operation, there are 22 VRA’s members participating in the Fund (called as “Fund Members”). Currently, the Fund has more than four hundred billion VN Dong, though it still is in the process of establishment and development, it contributes to the financial resources for Vietnam Rubber Association to be active in finding solutions to support its members. In 2015, rubber prices continue to fall, far below the cost of production, members must face many challenges, therefore, the 4th Term of the General Assembly of the Vietnam Rubber Association (2015 – 2017) decided that no contribution is collected in 2015 and more financial supports will be given to business and production activities of Members. Specifically, the activities in financial support that are done and being done by the Fund under the provisions of the Regulation on Financial Management of Vietnam Rubber Export Insurance Fund, are as follows:
1. Support the budget to finance VRA’s activities, namely, activities in publication of specialized information, international cooperation and part of expenses for the operation of the Office of Vietnam Rubber Association.
2. Support finance for trade promotion activities namely conferences, workshops, exhibitions, delegations to promote trading domestically and internationally to strengthen, expand and seek rubber consuming markets.
3. Support finance to members affected by damages and risks during rubber production – export business ie. damaged rubber trees by natural calamities, pests and diseases, etc.
4. Support finance to members having losses in rubber export due to objective reasons.
In the 4th Term of the General Assembly of the Vietnam Rubber Association (2015 – 2017), members of the Fund highly appreciated the necessity as well as the role of the Fund in its financial support given to rubber production, trading and export activities of Members.
In this Term, besides close monitor of the Executive Committee of the Vietnam Rubber Association and efforts of the Management Council along with the staffs, the Fund expects to receive feedbacks, constructive contribution for management operations from VRA’s members to assist the Fund in its implementation of guidelines of the Resolution of the General Assembly of the Vietnam Rubber Association and its financial support will be more and more practical and effective./.
Vietnam Rubber Export Insurance Fund (Kieu Nuong)