In the first seven months of 2021, rubber recorded the strongest export growth among Vietnam’s agricultural, forestry, and fishery commodities. Exports to major markets such as the EU and China are expected to keep rising, supported by high prices.
According to the Import and Export Department (Ministry of Industry and Trade), Vietnam exported an estimated 914,000 tons of rubber worth USD 1.5 billion during January–July 2021 — an increase of 33.6% in volume and 73.6% in value compared with the same period of 2020. This makes rubber the fastest-growing item in Vietnam’s agricultural export portfolio.
The average export price reached USD 1,677 per ton, up 30% year-on-year, according to the Ministry of Agriculture and Rural Development.
Domestically, latex prices in Binh Phuoc Province rose sharply during May and June 2021. By the end of July, natural rubber latex was traded between 315 – 330 VND per TSC degree.
A representative from the Import and Export Department noted that during the early months of 2021, rubber imports increased across most major global markets, particularly in the EU-27, Malaysia, and India. Notably, imports from Vietnam to these destinations also rose, though Vietnam’s market share outside of China remains relatively small.
In the first five months of 2021, China — the world’s second-largest rubber importer — purchased USD 5.14 billionworth of rubber, up 29.7% year-on-year. Of this, imports from Vietnam reached USD 770 million, soaring 77.3%compared to 2020. Vietnam’s share of China’s rubber imports increased to 15%, up from 11% a year earlier.
Global rubber supply continues to be affected by container shortages, while China’s efforts to boost strategic reservesand ongoing pandemic disruptions have limited production and distribution capacity worldwide.
“Vietnam’s rubber exports are expected to maintain growth momentum thanks to strong demand from China — the country’s largest export market — along with favorable logistics and stable trade relations,”
said a representative from the Ministry’s Import and Export Department.
“At the same time, prices remain significantly higher than the same period last year.”
In the European Union, the first months of 2021 reaffirmed the bloc as the world’s largest rubber importer. Yet, Vietnam’s share represents only 0.8% of the EU’s total import value. Nonetheless, the outlook for Vietnamese rubber exports to EU markets remains positive, as demand is expected to increase while supply constraints persist.
In the United States, rubber imports during January–May 2021 reached USD 1.68 billion, up 10.6% year-on-year. Imports from Vietnam totaled USD 36.7 million, up 75.4%, raising Vietnam’s market share to 2.2% from 1.4% in 2020.
Overall, the export outlook remains favorable. The Ministry attributes this to the accelerated vaccination campaignsin major economies, which are enabling production recovery and boosting global demand for natural rubber, particularly in China, the U.S., and the EU.