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An Overview of Vietnam's Natural Rubber

An Overview of Vietnam's Natural Rubber2019.07.29

Although originating from Brazil, the rubber tree is mostly planted in Southeast Asia countries, hence explaining the region being responsible for such a high proportion of world natural rubber exports (82%). The largest exporter is Thailand, followed by Indonesia, constituting 34.8% and 30.1% of total global exports in 2018. Vietnam ranks third with 7.5%, followed closely by Malaysia with 7.1%.



Data Source: ITC


According to the data from ITC, in 2018, the total value of Vietnamese natural rubber (HS 4001 Natural rubber, balata, gutta-percha, guayule, chicle and similar natural gums, in primary forms or in plates, sheets or strip) exports reached $984,906 Thousand USD. Total exported volume was 674,869 ton, translating to an average export price of $1,459 USD/ton.


In the past five years, Vietnam’s natural rubber export value has shown a sharp decrease first and bottomed at 881,176 thousand USD in 2016, then it has presented a slight increase after that and risen to 984,906 thousand USD in 2018.




Data Source: ITC


China has always ranked first in terms of export destination for Vietnamese natural rubber, accounting for 64% of export value in 2017. This was significantly more than the next two export markets, Malaysia and India, with only 5% and 4% share respectively. Natural rubber volume exported to China has surged at a CAGR of 13% in the last 5 years, much higher than the growth pace from other countries.



Data Source: General Department of Vietnam Customs, 2017FY


Since the time when the global NR oversupply peaked in 2013 at 851K tons, Vietnam NR plantation figures remained at around 980K ha, with strong growth despite enjoying a CAGR of 10% in the 2007-2012 period. Concurrently, dry latex production volume increased steadily at a CAGR of 6% for 2007-2017 period, yet the growth rate was much lower in the 2013-2017 period as compared with 2007-2013.



Data Source: GSO, SSI Research

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