Vietnam’s Rubber Exports Surpass US$1.7 Billion in First Eight Months of 2024

Hanoi, The Gulf Observer: Vietnam’s rubber exports have reached over US$1.7 billion in the first eight months of 2024, signaling strong growth in the sector. This performance places the country’s annual rubber export turnover on track to reach between $3 billion and $3.5 billion, marking a potential increase of $200 million to $400 million compared to last year.

According to data released by the General Department of Customs, Vietnam exported approximately 209,726 tonnes of rubber in August, generating close to $345 million. This represents a 12.7% increase in volume and a 12% rise in value compared to the previous month. The average export price of rubber was recorded at $1,637 per tonne, a slight decline of 1.1% month-on-month but a significant increase of 26.8% year-on-year.

In total, Vietnam exported around 1.12 million tonnes of rubber in the first eight months of 2024, earning $1.76 billion. While this represents a 7.2% decline in volume, it reflects an 8.4% increase in value compared to the same period last year.

Vietnam currently produces 1.3 million tonnes of rubber latex annually from 910,000 hectares of rubber plantations, according to the Vietnam Rubber Association (VRA). However, only 70 to 75 percent of these are mature trees ready for exploitation. Each year, more than 300,000 tonnes of rubber are used domestically in processing industries, leaving a substantial volume of raw rubber available for export.

This excess supply presents significant growth potential for Vietnam’s rubber industry, especially amid concerns of potential global supply shortages forecasted for the 2024-2025 period.