Vietnam’s rubber exports reached 2.89 billion USD in 2023. This industry fell out of the group of agricultural, forestry, and fishery exports of over 3 billion USD.
According to the Import-Export Department (Ministry of Industry and Trade), in 2023, Vietnam’s rubber exports reached about 2.14 million tons, worth 2.89 billion USD, down 0.04% in volume and 12.7% in value compared to 2022. The average export price reached 1,350 USD/ton which was down 12.7% compared to 2022.
Rubber exports in 2023 only earned 2.89 billion USD.
In 2023, Vietnam’s rubber exports faced many difficulties. Due to the sharp decrease in export prices, the value of rubber exports was much lower than the same period last year. Meanwhile, the recovery of production activities in China was weaker than expected, causing both consumption and rubber prices to be low.
Rubber exports to major markets in 2023 declined over the same period in 2022, especially major markets such as India, the US, Germany, Taiwan (China), Turkey, Sri Lanka, Russia, Indonesia, and Spain… However, exports to some markets still grew well in quantity such as China, Korea, Netherlands, Singapore, and Czech Republic…
China remains the largest market for Vietnam’s rubber, accounting for 79.22% in quantity and 78.08% in value of the country’s total rubber exports in 11 months of 2023. India ranks second, accounting for 5.34% in quantity and 5.49% in value of the total rubber exports in 11 months last year.
In the world market, in 2023, rubber prices in the Asian market fluctuated sharply, prices were low in the first two quarters of the year and increased again in the last quarters of 2023. Prices hit year highs in October and November 2023 but then decreased. In December 2023, rubber prices fluctuated strongly compared to the end of last month. While the price in Japan decreased, it increased in Shanghai and Thailand thanks to the stable demand from China’s factories, the market hoped for stimulus measures in China and was concerned about the possibility of supply shortages from Thailand.
Nearly 80% of Vietnam’s total rubber exports are to China.
In the domestic market, in 2023, the price of raw rubber latex fluctuated according to the trend of the world market. Latex prices decreased in the first two quarters of the year, then increased again in the third and fourth quarters of 2023.
The price of raw rubber latex in December 2023 in some provinces and cities fluctuated slightly. The purchase price of rubber latex in Binh Phuoc and Gia Lai was stable, while prices in Binh Duong and Ba Ria-Vung Tau increased slightly compared to the end of last month.
In particular, Phu Rieng Rubber Company keeps the purchase price at 285-305 VND/TSC. Binh Long Rubber Company keeps the purchase price at 285-295 VND/TSC. However, Ba Ria Rubber Company adjusted the purchase price to 283-293 VND/TSC, an increase of 03 VND/TSC. Phuoc Hoa Rubber Company also adjusted the purchase price of raw rubber latex to 314-316 VND/TSC, an increase of 3 VND/TSC compared to the end of November 2023.
According to the Vietnam Rubber Industry Group (VRG), in 2023, the Group’s exploited rubber latex output was estimated at 445,000 tons, 4.7% ahead of the year plan, up 3.5% (equivalent to an increase of 15,400 tons) compared to the last year. Consumption reached 520,290 tons of rubber of all kinds, reaching 102.4% of the year plan, up 3.8% (equivalent to an increase of 18,968 tons) compared to 2022. On average, in 2023, the selling price of latex for the whole Group was estimated at 30.5 million VND/ton, down 5.8 million VND/ton (equivalent to a decrease of nearly 16%) compared to the selling price in 2022.
Industry experts said that in the coming time, demand in China is still the key factor affecting the rubber price movement in Vietnam. In addition, fluctuations in oil prices due to trade disruptions in the Suez Canal will also indirectly affect rubber prices.
In 2024, it is expected that China will boost automobile consumption as well as production activities, leading to increased demand for rubber imports for the production of tires and other products. China’s promotion of rubber imports will be a driving force for global rubber price increases. Meanwhile, nearly 80% of Vietnam’s total rubber exports are to China./.
