Record Rubber Exports
According to data from the General Department of Customs, in 2024, Vietnam's rubber exports reached 2 million tons, valued at 3.4 billion USD, marking the highest export value ever recorded. The previous record was 3.3 billion USD in 2022. The average export price of rubber in 2024 was 1,701 USD per ton, significantly higher compared to 1,350 USD per ton in 2023.
In January 2025, Vietnam's rubber exports to most major consumption markets decreased compared to December 2024. China continued to be Vietnam's largest export market for rubber in the first month of 2025, accounting for 78.7% by volume and 78.1% by value, with a volume of 126,384 tons valued at 233.3 million USD. This represents a 24.7% decrease in volume but a 0.1% increase in value compared to the same period in 2024. The average export price of rubber to this market was 1,846 USD/ton, an increase of 33%.
Similarly, exports to India and South Korea also saw significant declines of 66.6% and 54%, respectively, compared to January 2024, reaching 3,934 tons and 2,452 tons. Meanwhile, Malaysia became Vietnam's second-largest rubber export market in January 2025, with volume increasing by 8.4 times and value increasing by 9.4 times compared to January 2024, reaching 6,605 tons with a value of 10.095 million USD. Additionally, exports to Indonesia saw a sharp increase of 123%, and exports to the United States rose by 16.9%.
Global Rubber Supply Shortage
The rising export prices of rubber to China reflect the sharp increase in prices over recent years. In January 2024, the export price to China was 1,388 USD per ton, gradually rising through the months, reaching 1,905 USD per ton by November 2024, a 40% increase compared to November 2023. Overall, the export price of rubber to China in the first 11 months of 2024 increased by 25% compared to the same period in 2023.
In 2024, global rubber prices surged due to a supply shortage relative to demand. The Association of Natural Rubber Producing Countries (ANRPC) reported that, in the first 10 months of 2024, global natural rubber production reached 11.2 million tons, while demand was 12.1 million tons, resulting in a deficit of around 900,000 tons. While global rubber production is expected to increase by 4.5% in 2024, global demand is projected to decrease by 0.2%, leaving the market still facing a rubber supply shortage.
The Rubber Industry Must Adapt to New Requirements
The surge in rubber prices has led to positive results for rubber companies in Vietnam. Mr. Lê Thanh Hưng, CEO of the Vietnam Rubber Group (VRG), stated that in 2024, VRG's revenue is expected to reach 24,582 billion VND, exceeding its target, while pre-tax profit is projected at 4,718 billion VND, 23% higher than planned.
China remains the most important market for Vietnamese rubber. In 2024, rubber exports to China reached nearly 1.5 million tons, valued at 2.4 billion USD, a decrease of 8.5% in volume but an increase of nearly 11% in value compared to 2023. China accounts for about 72% of the volume and 71% of the export value of Vietnamese rubber.
A significant challenge currently facing the rubber industry is the European Union's Forest Conservation Agreement (EUDR), which requires imported products, including rubber, to have traceable origins and meet environmental protection standards. This presents a considerable challenge for Vietnam’s rubber industry, as many businesses are still working to improve product quality and develop sustainable brands. Consequently, companies need to invest in improving production processes and enhancing traceability, particularly to meet the demands of the EU market.
Professor Adelegan, Chairman of the International Rubber Study Group (ISG), emphasized that Southeast Asian countries, especially Vietnam, must focus on enhancing product quality and traceability to meet the stringent standards of the EU. Mr. Lê Thanh Hưng also affirmed that Vietnam's rubber industry is actively implementing measures to protect the environment and ensure product traceability, aiming to maintain competitiveness and achieve sustainable growth.
Source: GSO
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