Vietnam’s rubber export value expected to reach 3.3 billion USD in 2024

Vietnam’s rubber export value is expected to reach between 3.3-3.5 billion USD by the end of the year, forecast the Vietnam Rubber Association.

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

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 said that with the recovery of the global automobile and tyre industries (especially in China), Vietnam’s rubber exports will likely enjoy favourable conditions and are expected to surge in the second quarter.

At the same time, Mirae Asset Securities Co. has also delivered a positive forecast about the business performance of the Vietnam Rubber Group Joint Stock Company (VRG) — the leading rubber producer in the country, vnbusiness.vn reported.

VRG's revenue and after-tax profit in 2024 are expected to reach over 25.68 trillion VND and 4.9 trillion VND, up 16% and 45%, respectively.

This positive assessment is due to the significant rebound of rubber prices this year as demand from the global tyre industry grows, the online newspaper cited the Mirae Asset Securities Co. as saying.

Meanwhile, Phu Hung Securities Co. has said in a recent report on Vietnam’s natural rubber industry that rubber prices will continue to increase in the 2024-25 fiscal year. The prices of TSR 20 rubber will likely reach 1.6-1.8 USD per kilo, up 10 to 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.

The driving force will come from core business activities, and local rubber businesses will continue to benefit from the trend of increasing selling prices and the ability to increase export market share when other markets face supply shortages in the 2024-25 period.

General Secretary of the VRA Vo Hoang An said there remained room for Vietnam to increase its exports of rubber materials, as the country can produce 1.3 million tonnes of rubber latex annually but the local rubber processing sector only needs over 300,000 tonnes.

Under a strategy to develop plant cultivation through 2030, rubber yield will be raised to 1.8-2 tonnes per hectare.

Last year, Vietnam exported 2.14 million tonnes of rubber, earning 2.89 billion USD, according to figures from the General Department of Customs.

The figures represented a year-on-year increase of 0.04% in volume but a decline of 12.7% in value.

China remained Vietnam’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./.