Vietnam posted a year-on-year increase of 18 percent in rubber exports to earn US$3.4 billion in 2024 despite a 6 percent decline in volume to 2 million tonnes, primarily driven by high prices.
The sum includes US$1.2 billion worth of rubber products, rising over 13 percent from the previous year, according to Vietnam Customs.
Meanwhile, about 1.9 million tonnes valued at US$3 billion were imported last year, leading to a trade surplus of US$400 million, statistics showed.
Le Thanh Hung, Chairman of the Vietnam Rubber Association (VRA), attributed export growth to a surge in prices which averaged US$1,701 per tonne in 2024, much higher than the 2023 average of US$1,350 per tonne. As a result, despite a drop in volume, the export value still increased.
The Association of Natural Rubber Producing Countries (ANRPC) noted that in 2024, the global natural rubber output stood at 11.2 million tonnes while total demand reached 12.1 million tonnes, causing a supply shortage of about 900,000 tonnes.
Nguyen Duc Dung, Deputy General Director of the Mercantile Exchange of Vietnam, further explained that rubber prices stayed high in the final months of last year based on this limited global supply and high demand.
Natural rubber output declined in countries that lead in production, while global demand, especially in China – the world’s biggest rubber importer, kept rising. China implemented expansionary monetary and fiscal policies to stimulate its economy, inspiring expectations for a strong economic rebound and driving rubber demand in manufacturing sectors.
The VRA forecasts a year of even more robust growth for Vietnam’s rubber industry in 2025, with exports possibly eclipsing US$11 billion, an increase of 10 percent from the previous year, with the sustainable value of environmentally friendly and recycled materials maximized.
Domestic and international prices in early 2025 will be largely dependent on the effect of the economic policies of China, the top importer of Vietnamese rubber, where heavy investments in industrial projects, especially car tire and industrial equipment manufacturing, may fuel demand for rubber materials, keeping prices high in the short term.
Rubber export will be guaranteed by high demand in China as well as Southeast Asian countries, especially coupled with the gradual economic recovery worldwide, Mr. Dung opined.
