Dr. Tran Thi Thuy Hoa, a specialist in sustainable rubber development, emphasized:
“Smallholder farmers play a vital role in the rubber industry’s journey toward sustainability. Linkage models between smallholders and processing companies — such as the Cam Lo model (Quang Tri Province) — show great potential in building a sustainable rubber supply chain with the participation of smallholder farmers.”
Three Rubber Supply Chains from Smallholders
Vietnam’s rubber industry has been deeply integrated into global markets. Vietnamese natural rubber (NR) is now exported to over 80 countries, while rubber products are present in more than 170 markets worldwide. Although domestic consumption is smaller than exports, it has been steadily increasing.
At the Workshop on Smallholder Rubber Linkage and Sustainable Production in Vietnam, experts agreed that successful international integration requires all supply chain participants — including smallholders — to comply with global sustainability and traceability standards.
Many markets now demand sustainably produced natural rubber with clear and legal origin. The lack of information about smallholder linkages and purchasing entities makes it difficult to meet export requirements.
According to Dr. Tran Thi Thuy Hoa’s survey in Binh Phuoc, Kon Tum, and Quang Tri, there are currently three existing natural rubber supply chain models involving smallholders:
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Indirect supply chain through intermediaries.
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Direct supply chain from individual smallholders to processors.
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Group-based direct supply chain from organized smallholder groups to processors.
Among these, group-based linkages between smallholder households and rubber processing companies have only emerged in the past three years. Under this model, smallholders organize into groups or cooperatives that collectively sell latex directly to processing enterprises, bypassing intermediaries.
Sustainable Smallholder Group Partnership – The Cam Lo Model
At the workshop, representatives from Cam Lo Rubber Company (Quang Tri Province) shared their successful experience with the Sustainable Smallholder Rubber Group Linkage Model.
Established in late 2018, the model includes five smallholder groups located in Cam Nghia, Cam Chinh, and Cam Hieu communes of Cam Lo District. Each group consists of 15–30 member households, managing about 30 hectares of rubber, supplying an average of 700–1,000 kg of latex per group per day to the Cam Lo Rubber Processing Plant(under Quang Tri Trading Corporation).
The plant provides smallholders with technical support, including anti-coagulant chemicals, rain-sheltering materials, and harvesting training. Annual agreements between the factory and farmer groups include the following commitments:
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Latex must be clean and free from impurities.
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Latex must be delivered on time according to factory schedules.
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The purchase price equals or exceeds market prices at the time of delivery.
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The factory updates daily prices to ensure transparency.
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If market prices elsewhere remain higher for two consecutive days, the group is free to sell elsewhere.
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The factory pays daily in cash for delivered latex.
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Any adulterated latex found will result in the termination of the agreement.
This cooperative model demonstrates how direct linkages between smallholders and processors can promote transparency, trust, and sustainability across Vietnam’s rubber supply chain — helping small farmers benefit from stable prices and contributing to the country’s broader sustainable development goals.