A worker collects rubber latex. Photo courtesy of Vietnam Rubber Group.

Data from Investing.com showed natural rubber (RSS3, traded on Japan’s Tocom) holding steady around $1,700 per ton, about 15% lower than at the start of the year but still 10-15% higher than the 2020-2023 average.

According to Vietnam Customs, rubber exports in the first nine months totaled 1.3 million tons worth $2.32 billion, almost flat in volume but up 10.8% in value from a year earlier. The average export price stood at $1,785 per ton, reflecting stably high latex prices.

A stronger exchange rate and elevated rubber prices have bolstered industry profits, with most leading firms posting double-digit growth in Q3.

Earnings surge across major players

Dong Phu Rubber JSC (DPR) posted a strong Q3, with sales volume up 25.6% to 5,761 tons and average selling prices rising 4.9% to VND48.46 million ($1,840) per ton, according to the company's Q3 consolidated financial statements.

Revenue climbed 38% to VND482 billion ($18.32 million), while gross profit margin widened from 23.6% to 38%, lifting gross profit to VND183 billion ($6.95 million), more than double the year-earlier level. Net profit tripled to VND137.2 billion ($5.21 million).

For the nine-month period, Dong Phu posted VND886 billion ($33.67 million) in revenue and VND293 billion ($11.13 million) in after-tax profit, up 15.4% and 44% year-on-year.

By the end of 2024, the company had possessed about 9,000 hectares of plantations in Vietnam and overseas, with nearly 6,000 hectares under tapping, giving it a cost advantage amid high prices of latex.

Phuoc Hoa Rubber JSC (PHR) also saw strong results, with Q3 revenue rising 50% to VND617 billion ($23.45 million), supported by higher latex prices and steady sales.

Financial income rose nearly 98% to VND93 billion ($3.53 million), while other income surged to VND120 billion from only VND791 million a year ago.

Net profit jumped 154% to VND264 billion ($10.03 million), helped by compensation and land-transfer payments related to infrastructure projects, including the HCMC-Thu Dau Mot-Chon Thanh Expressway (VND6.92 billion) and the VSIP III Industrial Park (VND120.15 billion).

In the first nine months, Phuoc Hoa recorded nearly VND1.3 trillion ($49.26 million) in revenue and VND462 billion ($17.56 million) in net profit, up 28.6% and 82%, respectively.

Gross profit margin improved significantly from 21% to 26.8%, showing that Phuoc Hoa Rubber is taking advantage of the trend of latex prices remaining high in 2025.

Tay Ninh Rubber JSC (TRC) posted a 60% jump in Q3 net profit to VND117 billion ($4.45 million), driven by higher latex selling prices, increased income from tree liquidation, and lower interest expenses at its Cambodian subsidiary.

With the growth of a series of subsidiaries such as DPR, PHR and TRC in the rubber latex business, the parent company - Vietnam Rubber Industry Group (code: GVR) announced that its net revenue in Q3 reached over VND9.29 trillion ($355.22 million), up 20% over the same period last year.

Gross profit increased 66% to nearly VND2.65 trillion and profit after tax was nearly VND2.19 trillion ($83.12 million), nearly double that of last year. Accumulated in the first 9 months, revenue increased 20% to over VND20.43 trillion and profit after tax increased 93% to nearly VND5.22 trillion ($198.27 million).

Rubber latex sales account for about 92% of Vietnam Rubber Industry Group's total revenue, though the group also operates in hydropower, industrial parks, and wood processing. The group expects 2025 latex prices to average between VND47 million and VND47.5 million ($1,810) per ton, the highest since 2014.

Outlook and challenges

Vietnam ranks among the world’s top three rubber exporters, after Thailand and Indonesia, but around 80% of exports are raw materials, compared to about 60% in Thailand. More than 70% of Vietnam’s rubber output is shipped to China, underscoring heavy dependence on a single market.

To ensure sustainable growth, Japanese-backed B&Company has recommended Vietnam diversify export destinations.

The United States is emerging as a promising market, with growing demand for high-quality rubber. In 2024, Vietnam exported 29,200 tons worth $50.6 million to the U.S. - still modest compared to regional peers but offering strong growth potential if Vietnamese producers meet strict quality standards.

At the recent ASEAN Summit, the U.S. signed a trade agreement with Malaysia granting zero tariffs on rubber products, signaling continued high U.S. demand, particularly from the automotive industry.

Vietnam currently faces a 20% reciprocal tariff, though the Trump administration has hinted at possible exemptions for some products in future trade talks - a positive sign if Vietnam can meet U.S. and EU traceability requirements.

B&Company also pointed out that Vietnam currently has about 930,000 hectares of rubber plantations, exceeding the government’s 2030 target of 800,000-850,000 hectares. The country also targets 100% of latex and rubber wood having growing area codes to trace product origin.

As industrial and urban projects increasingly compete for land, companies such as DPR, PHR and GVR are replanting with higher-yield varieties and expanding into Cambodia and Laos.

The sector also faces new regulatory pressure from the EU Deforestation Regulation (EUDR), effective from December 2024. Given Vietnam’s reliance on imported rubber from Cambodia - where traceability remains challenging - the government is encouraging cooperatives and investment in digital tracking systems to improve transparency.

To stay competitive, Vietnamese producers need to focus on technology upgrades, market diversification, and stricter quality control.

According to Future Market Insights, the global natural rubber market is valued at $20.3 billion in 2025 and projected to reach $34.3 billion by 2035, though supply shortages are expected due to long cultivation cycles and planting area expansion limitations.