Rubber latex of the Quang Tri Rubber Co Ltd. Vietnam's rubber industry needs to develop its production chain to meet the increasing demands of export markets (Photo: VNA) To XuanPhuc, an expert of Forest Trends, said Vietnam's export of processed rubber hasbeen increasing to many countries. However, Vietnam's export rubber productsmust meet many requirements on the export market, including legal issues.
Atpresent, Vietnam has exported latex and refined rubber products to 175countries and territories and this figure is continuing to expand.
Vietnam'slargest export market for rubber products was the US, reaching about 1 billionUSD in 2020, with a market share of 33.2 percent, followed by Japan, China, theRepublic of Korea and Germany.
However,there is a situation that the amount of rubber harvested from small farms ishigher than that of large rubber plantations, according to Phuc.
Therefore,the Vietnamese rubber industry needs to make changes in the future to meet themarket requirements.
Theindustry needs to be transparent about the production supply chains, includinginformation about supply and chain activities.
Accordingto Tran Thi Thuy Hoa, an expert from the Rubber Research Institute of Vietnam,small rubber farms have become one of the most important parts in the rubberindustry. Especially, in the production of natural rubber, small rubber farms'supply has accounted for over 60 percent of the total output of natural rubber.However, small rubber farms have been developed mainly by spontaneity.
Smallhouseholds have sold latex mainly via traders without recording enoughinformation about transactions among them.
Therefore,there is a lack of information from all stages of the supply chain, includinginformation on links between households and the traders, meaning a failure tomeet the requirements of export markets.
Thisreduces opportunities for the households and businesses to access the market,but also creates risks for the Vietnamese rubber industry when entering theexport market in the future, according to Hoa.
Onthe other hand, the market's tendency to require legal and sustainable productsis inevitable in the future, so Vietnam's rubber industry must comply with themarket requirement.
Accordingto Vietnam Rubber Association, in 2020, Vietnam's export value of naturalrubber reached over 2.38 billion USD, accounting for 30.3 percent of the totalexport value of the rubber industry.
Exportvalue of processed rubber products was about 3.11 billion USD in 2020,accounting for 39.6 percent. Rubber wood exports were 2.36 billion USD,accounting for 30.1 percent.
Exportturnover of natural rubber and rubber products of Vietnam has increased inrecent years.
Vietnamhas the fifth largest rubber area growing rubber trees in the world, but itsoutput ranked third, only after Thailand and Indonesia.
Ithas exported mainly raw material of latex accounting for about 78.4 percent.The rest (21.6 percent) has been processed products such as tires, gloves, accessoriesand soles of shoes./.
VNA
