Trade Wars

Rubber exports regain strong growth in 2021

VIETNAM, January 14 –

Việt Nam’s rubber exports in 2021 reached 1.93 million tons, earning $3.24 billion. —Photo nld.com.vn

HÀ NỘI —The domestic rubber industry saw a strong recovery in export turnover last year, after a 10-year slump due to a sharp reduction in the export price of rubber.

Vietnamese rubber products are exported to more than 80 countries and territories around the world. Việt Nam now ranks third in the world market in terms of export value.

According to the Ministry of Agriculture and Rural Development, Việt Nam’s rubber exports in 2021 reached 1.93 million tons, earning $3.24 billion. Exports increased by 11.7% in volume and 36.2% in value over one year. The strong growth in value is due to the continued rise in rubber export prices.

The industry earned an export turnover of $3.2 billion in 2011 due to record export rubber prices. However, in the following nine years, the turnover of rubber exports fell below $3 billion due to the sharp drop in export rubber prices, even falling below $2 billion. dollars. In 2020, thanks to the recovery of export prices, the turnover of rubber exports reached 2.38 billion dollars.

In addition, Vietnamese rubber products have entered many key markets, partly driving up the total rubber export value in 2021.

Last year, rubber exports rose sharply in many key markets, such as the United States, EU, Malaysia, South Korea and India.

In the first 10 months of 2021, exports jumped 96.4% in volume and 153.6% in value to India; 57.8% in volume and 95.2% in value to South Korea; 80.5% by volume and 130% by value in the United States; and 79% in volume and 129.7% in value to Germany.

China remained the biggest export market for Vietnamese rubber products with exports of 1.2 million tons of rubber, bringing in $1.96 billion over 11 months in 2021, according to the General Department of Customs. Exports increased by 1.71% in volume and 26.3% in value over the same period in 2020.

Trần Ngọc Thuận, chairman of the Việt Nam Rubber Association (VRA), said that rubber was a key agricultural export product, accounting for a large part of Việt Nam’s total agricultural product export turnover. .

In 2021, the rubber industry achieved impressive export growth despite COVID-19. Many processed rubber products such as tires, gloves, and rubber seals accounted for a significant portion of the industry’s export revenue.

According to the association, the scarcity of rubber materials has pushed up export prices in 2021. The global supply of natural rubber has been insufficient due to an extended rainy season in some Asian countries.

This low supply of latex is expected to continue into 2022, which will cause the price to remain high.

At the same time, the easing of pandemic-related restrictions would contribute significantly to the recovery of rubber demand in 2022, such as the reopening of international borders of some countries and the resumption of more economic activities using rubber.

Therefore, the outlook for the domestic rubber industry in 2022 will be very promising, with strong export growth and export prices remaining high.

Industry expects value of rubber exports to reach $3.5 billion this year, association says

However, regional and global markets are expected to continue to experience complicated and unpredictable developments such as slow economic growth, trade wars between major economies, and the increasing use of technical barriers and trade remedies. Other factors include the impact of Industry 4.0 and customer demand for sustainable products.

The Ministry of Industry and Trade and the Ministry of Agriculture and Rural Development are coordinating with localities, associations and companies to implement solutions to develop the rubber industry value chain of Việt Nam and to strengthen the links between production and export. It will develop products associated with branding in a sustainable way. —VNS