Rubber export prices hit 10-year high
Import-Export Department (Ministry of Industry and Trade) cited statistics from General Department of Customs, saying that in 2024, Vietnam exported a total of 2 million tonnes of rubber, down 6.2% compared to 2023. However, due to prices remaining high, export turnover of this item still increased sharply by 18.2% and reached a record of more than 3.4 billion USD.
Average export price of rubber in 2024 reached 1,701 USD/tonne, the highest level recorded in more than 10 years, up 26% (equivalent to an increase of 351 USD/tonne) compared to 2023. This price increase is driven by global supply shortages and unfavorable weather in major producing countries.
Vietnam's rubber export activities in the past year recorded very positive results, despite sharp decline in demand in the main market of China.
In 2024, Vietnam's rubber exports to Chinese market reached 1.45 million tonnes, worth 2.44 billion USD, down 15.1% in volume, but up 7.6% in value compared to 2023, accounting for 72.1% of total rubber export volume of Vietnam; In contrast, rubber exports to the second largest market, India, increased by 8.7% in volume and 35.2% in value compared to 2023.
Enterprises also expanded exports to many other markets such as Germany, the United States, Taiwan, Russia, Indonesia, etc. In particular, amount of rubber exported to Malaysian market increased 5.3 times compared to 2023, reaching 38,442 tonnes.
2024 will also see rubber exports to the EU market increase by 29%, as European importers increase imports ahead of the EU Deforestation Regulation (EUDR) which is expected to come into effect at the end of 2024. However, the implementation of this Regulation has been postponed for 1 year.
Regarding the outlook for 2025, Vietnam's rubber exports are expected to continue to grow as demand from China shows signs of recovery. Meanwhile, global supply is expected to remain tight.
Data from Association of Natural Rubber Producing Countries (ANRPC) shows that rubber output in major producing countries in Southeast Asia has been on a downward trend in recent years.
Specifically, Thailand's natural rubber output in 2019-2024 period decreased from 4.85 million tonnes to 4.7 million tonnes. Similarly, production in Indonesia fell from 3.3 million tonnes to 2.5 million tonnes and production in Malaysia from 640,000 to 340,000 tonnes during the same period. This decline in production is likely to exacerbate global supply shortage, pushing prices higher in the coming years. However, it is also argued that the average monthly price of natural rubber has fallen due to uncertainties such as: the EUDR regulation being temporarily suspended; concerns about the impact of tariffs on trade; and volatile crude oil prices, but with a downward trend. These uncertainties have led to buyers taking a “wait and see” stance and tending to stock up on raw materials from suppliers with more competitive prices in preparation for future demand growth, which is still expected.
Improving competitiveness, aiming for over 10 billion USD
Although EUDR regulation has been delayed by 1 year, according to experts, this is still one of the major challenges for rubber industry with requirement that imported products, including rubber, must clearly demonstrate their origin and comply with environmental protection standards. Therefore, businesses need to invest in production processes and improve traceability capacity to meet requirements of international markets, especially the EU.
According to Mr. Hoang Minh Chien - Deputy Director of Trade Promotion Agency (Ministry of Industry and Trade), trend of transitioning to a green economy, increase in requirements for sustainability, environment and economy throughout supply chain, along with deep integration into the world economy, is opening up challenges and opportunities for Vietnamese rubber industry.
Therefore, in addition to promoting Vietnam Rubber certification mark - Viet Nam Rubber at international fairs and exhibitions and through e-commerce channels, Vietnam Rubber Association also needs to coordinate with trade promotion agencies to support businesses in finding new partners, expanding export markets and increasing the value of the Vietnamese rubber brand.
Encourage businesses in the industry to promote application of sustainable development standards, reduce carbon emissions and build green value chains; meet the strict standards of the EUDR regulations.
According to Vietnam Rubber Association, if including products made from rubber and rubber wood, total export turnover of the industry in 2024 will reach 10.2 billion USD. This is not only a testament to the efforts of businesses in the industry but also a driving force for businesses to bring the Vietnamese rubber brand further.
Despite many challenges, Vietnamese rubber industry still has the opportunity for sustainable development. Mr. Le Thanh Hung - Chairman of Vietnam Rubber Association - affirmed that Vietnamese rubber industry is actively promoting solutions to protect environment, manage product origins and improve competitiveness. Meeting environmental protection requirements and improving product quality will help the industry maintain strong growth, affirming its position in the global supply chain.

Source: Vitic/ congthuong.vn