Vietnam’s rubber exports expected to reach US$3.3 billion in 2024

According to a forecast from the Vietnam Rubber Association (VRA), Vietnam’s rubber export value is expected to reach US$3.3-3.5 billion by the end of 2024.

A local worker in a rubber farm of Vietnam Rubber Group in Son La Province. (Source: Vietnam Rubber Association)

Over the past four months of 2024, the country shipped 499,000 tons of rubber for US$743 million, increased 6.4% in volume and 14% in value. In the first quarter alone, the export price of Vietnamese rubber increased by 5.3% to US$1,466 per ton.

China remained the largest consumer of Vietnamese rubber during this time, accounting for 80% of the country's total export volume, followed by India.

The association explained that with the recovery of the global automobile and tire industries, especially in China, Viet Nam's rubber exports may enjoy favorable conditions and are expected to surge in the second quarter.

Rubber prices continues to rise

In the meantime, a recent report by Phú Hưng Securities Co. on Viet Nam's natural rubber industry stated that rubber prices will continue to increase in the 2024-25 fiscal year. The prices of TSR 20 rubber will likely increase 10-20% year-on-year. According to the company, the growth prospects for businesses in the rubber industry are still positive in both the short and medium term.

Aiming for exports

General Secretary of the VRA Võ Hoàng An said there is still room for the country to increase its exports of rubber materials, as the country can produce 1.3 million tons of rubber latex annually yet the local rubber processing sector only needs about 300,000 tons.

Based on figures from the General Department of Customs, Viet Nam exported 2.14 million tons of rubber, earning $2.89 billion last year. The figures represented a year-on-year increase of 0.04% in volume but a decline of 12.7% in value.

China remained Viet Nam’s largest market, accounting for 79.22% of the country’s total export volume and 78.08% of value. It was followed by India, with 5.34% and 5.49%, respectively.