In 2021, Vietnam’s rubber industry achieved a total export value of USD 9.5 billion, including natural rubber, rubber products, and rubber wood. However, growing market demand for sustainable natural rubber is posing new challenges for producers — requiring improvements in management practices, production processes, and the adoption of transparent traceability systems.
A workshop titled “Connecting to Promote Sustainable Natural Rubber Production in Vietnam” was jointly organized by Forest Trends, the Vietnam Rubber Association (VRA), and Yulex Corporation (USA) on June 17 to discuss these issues.
Increasing Imports Amid Raw Material Shortages
According to the Vietnam Rubber Association, Vietnam currently has 938,800 hectares of rubber plantations, accounting for 7.2% of global rubber area. In 2021, Vietnam harvested 1.26 million tons of latex, making up 8.7% of global production, with an average yield of 1,682 kg/ha — the highest in Asia.
Vietnam remains the third-largest rubber exporter in the world, representing 17.4% of global rubber trade. In 2021, the industry’s total export turnover (natural rubber, rubber products, and rubber wood) reached USD 9.5 billion, up 20.8% from 2020.
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Natural rubber exports: 1.9 million tons worth USD 3.3 billion (+37.5% in value)
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Rubber products: USD 3.7 billion (+18.5%)
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Rubber wood: USD 2.5 billion (+6.9%), accounting for 17.1% of Vietnam’s total wood export revenue
Dr. Tô Xuân Phúc, Senior Analyst at Forest Trends, noted that state-owned large-scale plantations cover 455,000 ha (48%), while smallholder farms occupy 477,000 ha (52%).
Over the past decade, large plantations have declined by 10,000–20,000 ha annually as companies converted land for other crops or industrial use, leading to raw material shortages. Consequently, Vietnam has increased imports of natural rubber from Laos and Cambodia, which are blended with domestic supply for re-export.
According to Vietnam Customs, the country imported 1.6 million tons of NR worth USD 1.9 billion in 2021 — 2.4 times more in volume and 2.7 times more in value than in 2020. Notably, imports from Cambodia have surged despite the country imposing a 40% export tax on unprocessed rubber, raising questions about the trade flow.
Global Push Toward Sustainable Rubber Production
Dr. Phúc emphasized that global rubber consumption patterns are evolving, with increasing requirements for legality, traceability, and sustainability in sourcing. The Global Platform for Sustainable Natural Rubber (GPSNR) has introduced a Code of Conduct to promote sustainable production, trade, and use of NR in line with environmental and social standards.
At the workshop, representatives from Yulex Corporation (USA) and Weber & Schaer (Germany) — both leading global rubber companies — expressed strong commitments to purchasing sustainable, FSC-certified natural rubber at premium prices, encouraging Vietnamese producers to adopt sustainable certification systems.
The VRA stressed that producers must improve management practices, implement transparent traceability, and reduce production costs to stay competitive as global prices remain volatile.
Challenges for Smallholders and Proposed Solutions
Smallholder farmers play a critical role in Vietnam’s rubber supply chain, but traceability and certification remain difficult due to:
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Small-scale farms (87% of smallholders cultivate under 3 ha)
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Limited technical knowledge
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Weak and informal linkages between companies and farmers
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Heavy dependence on intermediary traders, leading to unstable supply chains
Enterprises like Lien Anh Rubber Co. Ltd. highlighted the need for transparent and fair linkage mechanisms to reduce intermediaries and ensure legal, traceable sourcing.
The Vietnam Rubber Association has launched an Action Plan for Sustainable Rubber Development and introduced the “Vietnam Rubber” certification label. As of now, 82 products from 29 factories (17 enterprises) have been certified under this label.
Experts also recommend:
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Encouraging agroforestry models and diversified income sources.
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Applying advanced green technologies for cleaner production.
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Enhancing community engagement to ensure social acceptance of sustainability projects.
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Supporting smallholder inclusion in company-led sustainable programs to strengthen Vietnam’s rubber brand and reputation globally.