Slow start: Latex from a rubber tree being collected in a container in Dau Tieng. Vietnam’s rubber exports experienced mixed outcomes in the first 11 months of the year with a 6% decline in volume but a 17.1% surge in value compared to 2023. — AFP
HANOI: All of Vietnam’s rubber’s top 15 export markets saw growth in export values in 2024, with Malaysia recording the highest increase, expanding fivefold, followed by Sri Lanka at 3.7 times, according to the Vietnam Rubber Association (VRA).
China, despite showing the lowest growth rate at 1.5%, remained Vietnam’s largest export market for rubber, accounting for 67.6% of the total market share.
Other key markets included India (7.7%), the European Union (EU) (6%) and South Korea (2.5%).
According to the VRA, China’s demand is driven by its booming electric and hybrid vehicle industries, particularly for tyre production.
However, Vietnam predominantly exports natural rubber blends and semi-processed products to China, with deeply processed rubber contributing minimally.
In 2023, Vietnam exported 1.7 million tonnes of rubber to China, generating US$2.27bil, nearly 80% of the total export volume and 78.5% of total value.
To increase export value and reduce reliance on the Chinese market, the VRA has urged exporters to prioritise processed rubber and expand into new markets, particularly the EU.
Global trade in rubber and rubber products, valued at US$240bil to US$250bil, sees the EU as the largest importer and exporter.
The EU accounts for 31% to 34.5% of global rubber exports and imports approximately US$75bil in rubber products annually.
In 2023, Vietnam exported nearly US$470mil worth of raw and processed rubber to the EU, representing 6.5% of the industry’s total export revenue.
Vietnam’s rubber exports experienced mixed outcomes in the first 11 months of 2024, with a 6% decline in volume but a 17.1% surge in value compared to the same period in 2023.
This increase in export value is attributed to a 24.6% rise in the average export price, reaching US$1,675 per tonne.
The Agriculture and Rural Development Ministry reported that November’s exports totalled 220,000 tonnes, valued at US$424.3mil.
Cumulatively, Vietnam exported 1.8 million tonnes of rubber during the period, generating US$2.95bil in revenue.
In a recent development, the Vietnam Rubber Group (VRG) announced steps to comply with the European Union’s anti-deforestation regulations (EUDR), which take effect in January 2025 for large enterprises.
Rubber is one of three Vietnamese exports affected, alongside timber and coffee.
VRG vice-general director Truong Minh Trung confirmed that 18 VRG member units had received sustainable forest management certifications, covering 120,000 ha.
Additionally, 38 factories had achieved certification allowing them to produce over 100,000 tonnes of certified rubber annually.
Three VRG member companies, the Dong Nai Rubber Corp, the Dau Tieng Rubber Co and the Chu Se Kampong Thom Rubber Co, had already fulfilled EUDR requirements, with their products accepted by European clients.
Vietnam’s rubber supply chain faces traceability challenges, particularly from smallholder plantations, which lack land-use certification and involve complex intermediary processes.
Imported rubber, primarily from Cambodia (80%) and Laos, presents similar difficulties.
With the EU delaying EUDR enforcement to January 2025, Vietnam continues to address compliance gaps. By focusing on value-added products and meeting international standards, the nation aims to strengthen its position in global rubber markets, particularly within the EU, a critical export destination. — Viet Nam News/ANN
