According to the Vietnam Rubber Association, Vietnam’s rubber industry has become one of the most important sectors in the agro-forestry sector. The rubber area in the country currently reaches nearly one million hectares, of which 60% is smallholder rubber owned by 265,000 households. The rest is owned by state-owned rubber companies. Rubber area has not changed much in recent years.
Like many other agro-forestry economic sectors such as coffee, pepper, cashew... the rubber industry relies mainly on export. In 2021, the industry’s export turnover reached nearly 7 billion USD, of which the turnover from rubber products reached 3.7 billion USD and from natural rubber nearly 3.3 billion USD. China is the most important export market for the output of Vietnam’s natural rubber. The remaining major export markets include the US, India, the European Union (EU), Japan and South Korea.
Forest Trends policy analyst To Xuan Phuc said that the world’s rubber consumption is changing, including regulations on import and export of this product. Therefore, Vietnamese rubber enterprises must change quickly to adapt flexibly.
Sustainable production of natural rubber in the future is an inevitable trend, which is both a challenge but also an opportunity for businesses to improve product value, promote the production process to strictly comply with the environmental and social regulations. Regulations on the legality and sustainability of rubber-based input materials are increasingly strict. Despite being one of the three largest rubber producing countries in the world, Vietnam’s rubber industry is currently facing a number of limitations.