In 2022, Vietnam exported 2.14 million tonnes of natural rubber, bringing in 3.31 billion USD, up 9.6% in volume and 1.1% in value compared to 2021. Although it only slightly increased compared to the previous year, the export turnover of rubber has also set a new record of 3.31 billion USD…
Looking back at the journey of rubber exports over the past 20 years, the Ministry of Agriculture and Rural Development said that the export turnover achieved over 01 billion USD in 2006 for the first time and remained above 01 billion USD until 2009.
In 2010, rubber exports grew dramatically, the whole country exported 760,000 tonnes of rubber and for the first time, the export turnover of this item exceeded 02 billion USD, specifically reaching 2.3 billion USD. By 2011, rubber exports reached 816.5 thousand tonnes and the export value went up to 3.2 billion USD – this is the first time rubber exports surpassed 03 billion USD.
The recovery of global demand for rubber is the driving factor for rubber exports in 2022. (Photo: Internet)
THE EXPORT VOLUME IS UP BUT THE INCREASED VALUE IS LOW
From 2012 to 2020, rubber exports continued to decline and could not pass 03 billion USD, respectively: 2.85 billion USD, 2.5 billion USD, 1.79 billion USD, 1.53 billion USD, 1.67 billion USD, 2.25 billion USD, 2.091 billion USD, 2.3 billion USD, 2.384 billion USD from 2012 to 2020. Until 2021, rubber exports surpassed 3.2 billion USD.
In 2022, rubber exports have set a new record turnover of 3.31 billion USD. Compared to 2021, the volume of rubber exported last year was 2.6 times higher while the turnover value was only slightly higher. This shows that the export price per tonne of rubber is only 40% of what it was 11-12 years ago. The average export rubber price in 2022 is only 1,547 USD/tonne, down 7.8% compared to 2021.
According to the Vietnam Rubber Association, the recovery of global demand has been a driving factor for rubber exports in the past year. However, the fluctuation of the USD exchange rate while the price of rubber latex declined in the last few months of the year, made the correlation between rubber production costs and selling prices unbalanced.
“The waiting time for tax refund is too long, causing enterprises to have a backlog of capital in taxes, having enterprises with a backlog of hundreds of billions of VND, no turnover capital for importing materials into factories, allocating production, processing, and next export contract. This wastes costs to pay interest on bank loans for temporary capital to pay value-added tax and also slows down export activities, bringing in unexpected turnover. ”
Mr. Vo Hoang An, Vice Chairman of the Vietnam Rubber Association.
Natural rubber exports set a new record in 2022. (Photo: Internet)
In the first 06 months of 2022, the high price of rubber latex has promoted the strong export of rubber, making the rubber industry better after a year of recovery. From the third quarter of 2022, export rubber prices gradually decreased. By the last 3 months of 2022, world economic and political fluctuations directly affected rubber import and export activities, causing rubber prices to fall sharply compared to the previous year.
In addition, fluctuations in exchange rates along with domestic tax policies have unintentionally prevented the rubber industry from developing.
According to Mr. Vo Hoang An, Vice Chairman of the Vietnam Rubber Association, in the last two months of the year, Vietnam’s rubber exports faced difficulties since the USD entered a cycle of increasing prices as an asset sheltering from inflation.
Fluctuations in the USD exchange rate are rising while the rubber latex price is low, making the correlation between rubber production costs and selling prices unbalanced. Moreover, it is difficult for enterprises to pay taxes in advance, then will be refunded after export.
According to Mrs. Phan Thi Hong Van, Deputy General Secretary of the Vietnam Rubber Association, the area of rubber trees in Vietnam is now more than 938,000 ha, accounting for 7.2% of the total global rubber area. Vietnam’s rubber latex harvest reached 1.26 million tonnes in 2022, accounting for 8.7% of global rubber production. The average productivity of Vietnamese rubber reached 1,682 kg/ha, ranking first in Asia.
Explaining the difference between the rubber latex harvest output of fewer than 1.3 million tonnes while exporting up to 2.14 million tonnes, Mrs. Van said that Vietnamese enterprises imported millions of tonnes of natural rubber latex raw materials in the past 2022. Therefore, although the export turnover is more than 3.3 billion USD, the trade surplus of the industry is less than 02 billion USD. It is clear that the production, exports, and profits of the rubber chain are seriously unbalanced./.