Highlights
 

• Vietnam rakes in US$3.4 billion from rubber exports in 2024
   
• Impressive surge in exports to Malaysia and Europe
   
• Chinese tire firm undertakes third phase of expansion in Vietnam

Vietnam’s rubber exports crossed an unprecedented revenue milestone in 2024, raking in US$3.4 billion — its highest-ever recorded earnings. Despite a 6.2% drop in export volume compared to the previous year, rubber exports experienced an 18.2% surge in value, underscoring the impact of rising global rubber prices. 

According to data from the Vietnamese General Department of Customs (GDC), the average export price of rubber reached US$1,701 per ton, marking an increase of US$351 per ton from 2023. This is the highest price Vietnam rubber exporters fetched in a decade. The surge in value reflects the tightening global supply, which has driven up prices and strengthened Vietnam’s revenue stream. With the 6.2% drop, the export volume dropped to 2 million tons.

Rubber products exports of Vietnam in 2024 were worth US$1.2 billion, marking an increase of 13% year-on-year.

17.1% rise in value during first eleven months of 2024

Vietnam's rubber exports displayed mixed results over the January-November period of 2024, experiencing a 6% decline in volume but a 17.1% rise in value year-on-year. This growth in export value is primarily attributed to a 24.6% increase in the average export price. 

The Vietnamese Ministry of Agriculture and Rural Development (MARD) said November's exports totaled 220,000 tons, at a value of US$424.3 million. Overall, Vietnam exported 1.8 million tons of rubber during the 11-month period, generating US$2.95 billion in revenue.

Source: Helixtap analytics & GDC

India emerges second largest buyer after China

China retained its position as Vietnam’s top rubber importer, accounting for 72.1% of the total export volume. However, the country’s imports from Vietnam fell by 15.1% in volume to 1.45 million tons, while the transaction value rose by 7.6% to US$2.44 billion, highlighting the higher per-unit pricing. The import demand to China fell due to large inventories and slow economic growth the country had in 2024.

India emerged as the second-largest buyer, registering an 8.7% increase in rubber imports from Vietnam and a notable 35.2% rise in value. Other key international markets, including the United States, Germany, Russia, and Indonesia, also demonstrated an upward trend in demand.

A particularly striking increase was observed in Malaysia, where Vietnamese rubber exports surged 5.3 times compared to 2023, reaching 38,442 tons, while the returns touched US$56.2 million. Vietnam ranked the sixth largest rubber supplier to Malaysia in 2024. The average export price to Malaysia hit US$1,462/ton, up 15.4% year-on-year, but the lowest among the top ten rubber export markets of Vietnam. 

Most exports to Malaysia were in latex, which accounted for 76.5% of total rubber exports to Malaysia. In 2024, Vietnam supplied 29,408 tons of latex, valued at US$42.3 million, to Malaysia.

Exports to the European Union saw a 29% increase as European importers rushed to stockpile rubber ahead of the impending Anti-Deforestation Regulation (EUDR) originally set to take effect at the end of 2024. However, the implementation of this regulation has been postponed by another year, offering Vietnamese rubber exporters an extended window of opportunity to strengthen their market presence.

Growing prominence of Vietnamese rubber supported the price

With disrupted supply owing to unprecedented weather conditions impacting Thailand, Vietnam rubber gained a lot of prominence in the physical buying. Being an economic option, countries like China, Malaysia opted for Vietnamese rubber especially as an alternative for Thai rubber. 

This resulted in a surge in SVR 10 (Standard Vietnamese rubber) price. Over the year, SVR 10 prices saw a 28% surge. While improved demand was partially impacting the price rise, the weather disruption, typhoons in the later year also weighed on the supply flow.

Source: Helixtap assessments

The weather has been a major disrupter last year for Vietnam as well as globally. Vietnam is now wintering (low production period), which is likely to impact the supply for the coming months. According to Helitap market sources rubber production has dropped to 70%.

Focusing on processed rubber in 2025

To enhance export value and bring down dependence on China, the Vietnam Rubber Association is encouraging exporters to focus on processed rubber and diversify their market reach, particularly in the European Union. The EU is estimated to account for 31–34% of global rubber exports and imports, worth nearly US$75 billion in rubber products annually, presenting significant opportunities for Vietnamese producers.

Vietnamese analysts anticipate continued demand growth for rubber in 2025, bolstered by a global supply shortage and erratic weather patterns affecting production in various countries. Rubber prices are expected to remain elevated, potentially sustaining Vietnam’s strong export performance this year. Vietnamese Ministry of Agriculture and Rural Development (MARD) has targeted to up rubber plantation areas in the country to 850,000 hectares by the end of this decade, bolstering the nation’s position in the rubber world.

Expansion of Guizhou Tyre in Mekong Delta

Meanwhile, giving a boost to the downstream tire sector in Vietnam, Advance Tyre (Vietnam) Co. Ltd., a subsidiary of Chinese tire manufacturer Guizhou Tyre, has been constructing a US$230 million tire-making unit in Vietnam’s Mekong Delta in Tien Giang province since November last year.

This initiative marks the third phase of the company’s total US$615.2 million investment in the region. The initial phase, valued at US$214 million, began in December 2019 and represented Guizhou Tyre’s first production facility outside of China. This phase has an annual production capacity of 1.2 million all-steel radial tires.

The second phase, with an investment of $186 million, focuses on manufacturing truck and bus radial (TBR) tires, off-the-road (OTR) tires, and farm tires. The newly launched third phase aims to produce six million passenger car radial (PCR) tires annually, with construction expected to be over this year (2025). The Chinese tire firms are ramping up production in Southeast Asian countries to evade anti-dumping duties imposed by Western countries on China.