Wide door for Vietnamese enterprises
Accounting for about 16% of total rubber export turnover, the EU is the second largest market of Dong Nai Rubber Corporation (Donaruco). Meeting the requirements of the European Anti-Deforestation Regulations (EUDR) is a key solution implemented by the enterprise to maintain this export market.
Accordingly, enterprise has successfully built a raw material traceability system (DNRC-Traceability). This system not only helps Donaruco monitor the current status of the garden but also accurately determines the origin of raw materials of each batch of rubber latex products, processing date, harvest date, product quality and even the geographical location of the garden.
In addition, because every year we still have to purchase a significant amount of smallholder rubber latex to ensure sufficient raw materials for the operation of 3 rubber processing factories, Donaruco has implemented many solutions to help smallholders collect necessary information, map and manage the origin of rubber latex materials according to EUDR regulations. At the same time, we cooperate closely on technology and share benefits when smallholders comply with EUDR regulations. It is estimated that by the end of 2024, about 1,600 tonnes of Donaruco's EUDR-compliant rubber latex will have been successfully exported to the EU market. Mr. Do Minh Tuan, General Director of Donaruco, said that meeting the EUDR regulations will not only help Donaruco be ready to boost rubber exports to the EU after the EUDR officially takes effect, but also help the company enhance its reputation in the international market, helping the company's rubber products attract more attention from major markets such as the US, Japan, Korea, China, etc.
According to estimates from the Customs Department, in the first 6 months of 2025, rubber exports reached 680,000 tonnes, worth 1.27 billion USD, down 6.5% in volume, but still up 14.4% in value compared to the same period in 2024, due to an increase in export prices of 22.4%, reaching an average of 1,865 USD/ton.
EU is Vietnam's third largest export market for natural rubber and rubber products, accounting for about 7.4% of the industry's total export turnover. There are currently no exact figures on the amount of raw rubber from smallholders entering the export supply chain to the EU. However, there is certainly a quantity of raw materials from this source included in natural rubber products and rubber products being exported to this market.
According to data from the Vietnam Rubber Association, in 2024, the supply of raw rubber from households will reach 819,000 tonnes of latex, equivalent to 63% of total 1.3 million tonnes (dry weight) of domestic raw materials. The supply of rubber from smallholders is expected to remain stable in the coming years.
EUDR regulation will officially be applied from December 30, 2025, requiring 7 groups of products, including rubber, when imported into the EU to ensure that the entire supply chain complies with the national laws of the country of production, has full traceability and the production process does not cause deforestation and forest degradation after December 31, 2020.
Vietnam has been forming large and small rubber plantation models that meet EUDR. Enterprises that meet the EUDR are mainly enterprises belonging to Vietnam Rubber Group. Smallholder models that meet the EUDR are mainly initiatives of private enterprises, such as the models of Mai Vinh Company, Viet Sing, Thuan Loi, implemented through linking smallholders and agents, organizing the supply chain to ensure traceability and meet the EUDR requirements on legality and no deforestation.
Rubber products meeting EUDR from these models have been exported to the EU at prices 150-300 USD/tonne higher than conventional products. “The market demand in the future is very large. We will expand production scale to meet the market in the future,” said Ms. Dang Thi Hoa Mai, Director of Mai Vinh Rubber Company.
Processing enterprises have a role in promoting formation of supply chains
Mr. Vo Hoang An, General Secretary of Vietnam Rubber Association (VRA), emphasized that the requirements for traceability and transparency in the supply chain are increasingly becoming mandatory standards in international markets. In that context, the smallholder rubber supply chain – which is the foundation of the Vietnamese rubber industry and is closely linked to the livelihoods of hundreds of thousands of households – is facing the risk of being eliminated from the global value chain without appropriate support solutions.
Meeting the EUDR is a major challenge, but at the same time an opportunity to upgrade the entire value chain towards a more sustainable and responsible direction. VRA will continue to accompany businesses, smallholders and stakeholders to promote a transparent supply chain model, in line with the trend of the world market.
Dr. To Xuan Phuc, Director of the Forest Policy, Finance and Trade Program at Forest Trends, said that although not all natural rubber and rubber products originating from smallholders are exported to EU, restructuring current smallholder supply chain towards meeting traceability requirements is a mandatory trend for all parties involved in the chain in the future. Meeting these requirements is an opportunity to modernize the rubber supply chain, promote industry governance, increase sustainable income for farmers and contribute to sustainable development goals. In particular, processing enterprises need to play a role in promoting the formation of sustainable smallholder supply chains, especially private enterprises. Because the supply of raw rubber from smallholders plays an important role not only for private enterprises but also for state-owned enterprises. The cooperation of enterprises to support smallholders to meet the requirements of supply chain transparency and sustainability should be a basic component of the business model of enterprises.

Source: Vitic/ congthuong.vn