Last year witnessed Vietnam gross US$3.3 billion from exporting 1.97 million tonnes of rubber, representing a year-on-year rise of 12.9% in volume and 39% in value.
This robust growth last year in Vietnamese rubber exports can largely be attributed to high export growth to markets such as China, India, the Republic of Korea, the United States, Indonesia, Turkey, the Netherlands, the Czech Republic, and Canada.
According to the latest report released by the Association of Natural Rubber Producing Countries (ANRPC), the global shortage of natural rubber, coupled with a sharp increase in oil prices, is expected to create a boom in rubber prices until the end of the first quarter of the year.
Many experts therefore predict that global rubber prices in the 2022 to 2024 period are likely to experience an upward trend due to a drop in supply sources, a factor which will help Vietnamese rubber exports enjoy price advantages.
In the first quarter of the year, rubber prices are set to hover around US$2.4 per kilo and rebound to US$3.8 per kilo in the second half of the year due to high demand. However, global rubber output is anticipated to fall due to reduced area and climate change factors.
Furthermore, the enforcement of the EU-Vietnam Free Trade Agreement (EVFTA) is considered an opportunity for Vietnamese agricultural products, especially rubber products, to penetrate a large market with high selling prices, industry leaders believe.
In order to meet the stringent requirements set by the EU market, the rubber industry is required to ensure sustainable production in line with the Forest Stewardship Council (FSC) standards, said experts.
Despite the nation being the fourth largest rubber exporter in the world, Vietnamese rubber companies are being urged to exert greater efforts to meet the strict standards set by importers and to expand export markets moving forward.
Experts emphasised the necessity of accelerating the granting of the certification of "Vietnam Rubber” to improve the general quality of growing and processing rubber whilst building the brand of Vietnamese rubber.