Vietnamese rubber exports enjoy surge over four-month period

China has become the most significant export market for local rubber, with the export volume of natural rubber to the Chinese market last year reaching an estimated 1.36 million tonnes, thereby accounting for 77.9% of the total export volume.

Most notably, the northern neighbour remains the country’s largest export market with a volume of 290,159 tonnes of rubber during the first quarter of the year, making up 71.38% of the total export volume. In addition, rubber exports to markets such as India, the United States, and the Republic of Korea recorded sharp increases by 43.5%, 71%, and 52%, respectively.

Vo Hoang An, vice chairman and general secretary of the Vietnam Rubber Association, said since the beginning of the year, the average price of natural rubber globally has risen each month due to the recovery of the Chinese economy. Indeed, the widespread rollout of novel coronavirus (COVID-19) vaccines globally, along with the impact of the US$1.9 trillion stimulus package implemented by the US and European countries has served to boost the global economy.

An noted that China’s increase in rubber imports continues to be the driving factor behind the high rubber prices recorded during the final months of last year and in the early part of this year.

He went on to emphasize that the local rubber industry has exerted great efforts in recent years to diversify its export markets in order to target demanding markets such as Europe, the US, and Japan.

Despite these efforts, due to the adverse impacts of the COVID-19 pandemic in these countries, there was only a limited number of orders from these markets throughout 2020 and during the start of this year.

Elsewhere, demand for natural rubber continues to increase in China due to the early implementation of effective disease control measures.

An also recommended that the Vietnamese rubber industry utilise the range of benefits brought about by numerous free trade agreements as a means of accelerating the diversification of export markets and boosting the added value for the sector moving forward.