CSVN – The rubber market in 2023 is forecast to continue facing uncertainty and challenges. In an interview with Cao su Việt Nam, Mr. Trần Thanh Phụng – Deputy General Director of the Vietnam Rubber Group (VRG) – shared insights and solutions to stabilize and expand rubber consumption across the Group’s member companies.
Market Outlook for 2023: Challenges and Opportunities
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According to Mr. Phụng, the rubber market in 2022 was influenced mainly by non-fundamental factors such as inflation, the risk of global recession, a strong U.S. dollar, and macroeconomic policies that overshadowed supportive fundamentals.
These included a tightening global supply-demand balance, high crude oil prices, and rebounding manufacturing demand, all of which typically support rubber prices.
He explained:
“In 2023, the rubber market will continue to depend on these external factors. Inflation seems to have peaked, but global economic slowdown risks remain. Geopolitical tensions add unpredictability. Still, if inflation is controlled and political instability does not worsen, monetary policy will likely shift toward stimulating growth to counter recessionary pressure.”
Despite headwinds, he noted that rubber fundamentals remain relatively strong, helping the market avoid a deeper downturn in 2022. Average prices last year, though lower than 2021, were still higher than in 2020.
“Overall, the 2023 rubber market will remain under pressure amid global economic uncertainty, but fundamental strengths could prevent sharp declines. Once non-fundamental factors improve, the market may begin a new upcycle of recovery.”
Strengthening the Group’s Position Through Proactive Management
Mr. Phụng emphasized that the recent supply-demand crisis and historical price lows have provided valuable lessonsfor rubber producers. Most VRG member companies have experienced multiple market cycles, gaining insights into how to survive and grow sustainably.
For newer companies just entering the commercial phase, VRG’s internal cooperation and guidance from leadershiphave been crucial. As a result, most members now follow the Group’s strategic principle:
“Produce according to demand—sell what is produced.”
The Importance of Market Information and Forecasting
“In any industry, accurate information, market assessment, and forecasting play a vital role,” Mr. Phụng said.
Companies must constantly update their analyses and adjust forecasts dynamically as new variables emerge. This ensures management can adapt policies promptly, avoiding surprises when markets shift.
He stressed that no single formula applies to all VRG subsidiaries. Each company must identify its own strengths and weaknesses, then build strategies to leverage its competitive advantages and position its brand effectively.
Enhancing Productivity, Quality, and Global Standards
Mr. Phụng also highlighted the importance of:
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Applying science and technology to improve productivity and reduce costs.
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Maintaining international certifications such as ISO, FSC, and PEFC across VRG units.
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Expanding sustainable practices to meet the expectations of global buyers.
He added:
“As producers, we must recognize that buyers play a decisive role. Building and maintaining long-term partnerships based on trust, cooperation, and shared benefits is the foundation of sustainable business.”