Vietnam grows rubber export values for 2024
Hanoi, Vietnam – In 2024, all of Vietnam’s top 15 rubber export markets experienced growth in export values, with Malaysia leading the way by expanding fivefold, followed by Sri Lanka at 3.7 times, according to the Vietnam Rubber Association (VRA). Despite having the lowest growth rate at 1.5%, China remained Vietnam’s largest export market for rubber, accounting for 67.6% of the total market share. Other significant markets included India (7.7%), the European Union (EU) (6%), and South Korea (2.5%). The VRA noted that China’s demand is driven by its booming electric and hybrid vehicle industries, particularly for tire production.
Vietnam primarily exports natural rubber blends and semi-processed products to China, with deeply processed rubber contributing minimally. In 2023, Vietnam exported 1.7 million tons of rubber to China, generating US$2.27 billion, which accounted for nearly 80% of the total export volume and 78.5% of the total value. To increase export value and reduce reliance on the Chinese market, the VRA has urged exporters to prioritize processed rubber and expand into new markets, particularly the EU. Global trade in rubber and rubber products, valued at US$240 billion to US$250 billion, sees the EU as the largest importer and exporter.
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 ton. The Agriculture and Rural Development Ministry reported that November’s exports totaled 220,000 tons, valued at US$424.3 million. Cumulatively, Vietnam exported 1.8 million tons of rubber during the period, generating US$2.95 billion 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 hectares. Additionally, 38 factories had achieved certification allowing them to produce over 100,000 tons of certified rubber annually. Three VRG member companies 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 and Laos, presents similar difficulties. With the EU delaying EUDR enforcement to January 2025, Vietnam continues to address compliance gaps, aiming to strengthen its position in global rubber markets, particularly within the EU.