That was the key assessment shared by experts at the Vietnam Rubber Industry International Conference and Sustainable Rubber Workshop, organized by the Vietnam Rubber Association (VRA) on December 15.
Flexible Adaptation to a Volatile Market
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The annual rubber industry workshop serves not only as a platform for producers and traders to exchange insights, but also as a venue for discussing sustainable natural rubber development, market adaptation, and emerging global trends.
Experts at the conference observed that the rubber industry is showing signs of recovery after a prolonged downturn.
In 2023, despite global economic turbulence, the world’s rubber sector faced significant challenges — including unpredictable weather, labor shortages, and rubber tree diseases in major producing countries. Natural rubber (NR) prices during the first ten months of 2023 fell below 2022 levels but showed a rebound in the last two months, in line with renewed optimism about China’s economic recovery and increased buying from commodity funds.
According to the Association of Natural Rubber Producing Countries (ANRPC), global NR production in 2023 was estimated at 14.927 million tons, up 2.3% year-on-year, while consumption was expected to reach 15.575 million tons, up only 0.2%. Declines in output from Thailand and Indonesia, mainly due to climate impacts and lower plantation yields, have tightened global supply and pushed spot market prices higher.
Despite numerous challenges, Vietnam’s rubber industry continued to perform strongly by maintaining a flexible and adaptive approach in a volatile market environment.
Vietnam’s Rubber Export Achievements
According to Mr. Trần Ngọc Thuận, Chairman of the Vietnam Rubber Association (VRA):
“In the first nine months of 2023, the total export turnover of Vietnam’s rubber industry exceeded USD 6.6 billion. Among this, rubber products accounted for USD 3.2 billion, natural rubber for USD 1.9 billion, and rubberwood for over USD 1.5 billion.”
Sustainability and Compliance: Key Market Trends
Global markets are increasingly moving toward sustainability and traceability requirements. Notably, on June 23, 2023, the European Union (EU) introduced the Deforestation Regulation (EUDR), covering seven major agricultural commodities, including rubber.
Under this regulation, products imported into the EU must comply with environmental, land-use, labor, human rights, and taxation standards. Large enterprises have 18 months, while small and medium enterprises have 24 months, to adapt from the effective date.
This policy presents both a challenge and opportunity for Vietnamese natural rubber producers, requiring them to accelerate sustainability transformation, certification adoption, and supply chain transparency. Successful compliance will enhance competitiveness, brand reputation, and global market access, especially as international production shifts increasingly toward Vietnam.
Expert Discussions and Global Perspectives
The conference featured several insightful presentations:
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Prof. Joseph Adelegan, Secretary General of the International Rubber Study Group (IRSG), discussed global adaptation strategies and how the rubber industry can turn challenges into opportunities.
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Mr. Võ Hoàng An, VRA Secretary General, presented the outlook and recommendations for Vietnam’s rubber industry.
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Mr. Huỳnh Tấn Siêu, Head of the Industry Department of Vietnam Rubber Group (VRG), shared progress on sustainability programs and the next development roadmap.
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Dr. Vũ Tấn Phương, Director of the Vietnam Forest Certification Office (VFCO), discussed enterprise support mechanisms for meeting sustainability standards.
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Market analysts also outlined the price outlook for 2024 and beyond, forecasting a gradual recovery in global NR prices driven by tightening supply.
Strengthening the “Vietnam Rubber” Brand
During the conference, 21 enterprises were awarded the “Vietnam Rubber” Certification Mark, recognizing their contribution to brand development, export performance, and sustainability efforts.
2023 marked the eighth year of the national “Vietnam Rubber” branding program led by the VRA. The initiative enhances the quality reputation of Vietnamese rubber products, strengthens international recognition, and supports enterprises in gaining trust and visibility across global markets.
The “Vietnam Rubber” trademark is currently registered and protected in five markets: China, India, Taiwan, Laos, and Cambodia.
A total of 21 enterprises have used the mark for 96 products across 33 factories, including 17 state-owned, 4 private, and 3 overseas-based enterprises (1 in Cambodia and 2 in Laos).
Government Support for the Rubber Industry
Speaking at the event, Deputy Minister of Agriculture and Rural Development Nguyễn Quốc Trị praised the VRA’s branding achievements:
“The Ministry of Agriculture and Rural Development highly appreciates the VRA’s efforts in promoting the ‘Vietnam Rubber’ brand as a symbol of quality and reliability in the global market. The Ministry will continue to support the Association’s goals toward sustainable growth and competitiveness in the coming years.”