CSVN – Vietnam ranks 5th globally in rubber plantation area but 3rd in natural rubber export volume, thanks to its world-leading yield.
However, Vietnam’s rubber export prices remain lower than those of regional competitors because customers still question the consistency of product quality and corporate credibility. Notably, smallholders contribute about 57% of national rubber output, yet their product quality remains unstable and lacks government-certified testing mechanisms.
To strengthen competitiveness and ensure stable market access, the Vietnam Rubber Group (VRG) is pursuing a unified natural rubber brand strategy, targeting that by 2025, all natural rubber products produced by member companies will carry the VRG brand.
The VRG Market and Business Department has outlined nine strategic solutions to ensure stable consumption and sustainable revenue in the coming years.
1. Closely Monitor Global Market Fluctuations
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Track price movements, global demand, and brand-related discount policies to ensure timely adjustments. Focus on direct sales to end users—especially tire, glove, and industrial rubber manufacturers—under the motto “produce what sells.”
2. Enhance Market Intelligence and Forecasting
Develop daily and weekly market bulletins to provide real-time insights on rubber trends, helping member companies make informed decisions on pricing, demand, and product structure.
3. Improve Logistics and Palletization
Encourage Central Highlands, Northern, and Cambodian subsidiaries to adopt in-house pallet packaging, avoiding expensive outsourcing that weakens price competitiveness. VRG will implement a reward and penalty system to promote efficiency and quality.
4. Strengthen Relationships with Key Customers
Maintain strong ties with traditional buyers—industrial rubber producers, tire manufacturers, and traders—to gather feedback on quality, service, and market needs, enabling better strategic alignment.
5. Promote Sustainable, Certified Products
Increase the share of PEFC and FSC-certified rubber and wood products, expand participation in sustainable global supply chains, and showcase VRG’s commitment to environmental and social responsibility through international trade fairs and partnerships with overseas trade offices.
6. Accelerate Digital Transformation in Sales
Adopt IT and digital platforms for customer management, explore online trading and rubber exchanges, and establish a centralized data hub for product and partner information to support market transparency and accessibility.
7. Maintain Strict Quality Control Standards
Continue enforcing TCCS 112:2017 quality standards for VRG-branded rubber. Expand R&D partnershipsdomestically and abroad to create high-value products tailored for premium markets.
8. Establish a Southern Regional Warehouse Hub
Propose the creation of a central warehouse in southern Vietnam near major ports, offering affordable storage, palletizing, and logistics services to improve export operations and reduce costs for member companies.
9. Expand Production of SVR 10 and SVR 3L Mix
Accelerate early production of SVR 10 and SVR 3L mixed rubber to meet rising market demand, while proactively managing tax policy risks associated with mixed rubber exports.