A worker extracts rubber latex. Vietnam earned 3.4 billion USD from exporting 2 million tonnes of rubber latex in 2024. (Photo: VNA)

The Vietnam Rubber Association (VRA) is bullish about the prospects for the rubber industry in 2025, forecasting 10% annual growth in export revenue to over 11 billion USD.

This optimism is fueled by the sustainable value of eco-friendly raw materials and innovative recycling practices.

In early 2025, rubber prices, both at home and abroad, will be influenced significantly by China’s economic policies. With China launching economic stimulus measures, including hefty investments in industrial infrastructure, the rubber industry is already feeling positive effects. China's automotive industry, a giant in rubber consumption, is on track for continued expansion, fueled by robust domestic and export demands.

Nguyen Duc Dung, Deputy General Director of the Mercantile Exchange of Vietnam, pointed out that Vietnamese rubber producers are in a prime spot to capitalise on this trend. Not only is there an uptick in demand from China, but also from neighboring Southeast Asian nations, buoyed by a global economic recovery.

China remains the largest market for Vietnamese rubber exports. In 2024 alone, the country imported 2.4 billion USD worth of Vietnamese rubber, or 70.5% of Vietnam's total rubber export value, he said.

According to the General Department of Vietnam Customs, the country earned 3.4 billion USD from exporting 2 million tonnes of rubber latex last year, down 6% in volume but up 18% in value. Meanwhile, it spent 3 billion USD on importing 1.9 million tonnes, resulting in a trade surplus of 400 million USD.

VRA Chairman Le Thanh Hung said the value increase was a direct result of soaring prices, with the average export price jumping from 1,350 USD to 1,701 USD per tonne in 2024. This price escalation is closely tied to the heightened demand from Europe, which holds a major share of the global rubber trade, accounting for 31-34.5% of exports./.