A double windfall is on the way for Vietnam’s rubber sector. According to the Ministry of Industry and Trade (MoIT) Agency for Foreign Trade, Vietnam’s export revenue is expected to reach US$3.5 billion in 2022, with rubber prices expected to rise to US$3.8/kg in the second half of the year. Rubber prices have risen due to natural rubber scarcity and rising oil prices. The scarcity of rubber raw materials is expected to persist in 2022, and the world rubber market is entering a new price increase cycle as a result of decreasing supply. Rubber prices, on the other hand, are expected to recover by the end of the first quarter.
According to reports, Vietnam’s overseas shipment of 1.97 million tonnes of rubber totaled US$3.3 billion last year, representing a 12.9% growths in volume and 39% in value year on year. Its key markets, including China, India, Korea, the US, Indonesia, Turkey, the Netherlands, the Czech Republic, and Canada all increased their imports of Vietnamese rubber last year. Meanwhile, Vietnam’s rubber shipments to the European Union in November totaled 100,000 tonnes valued at US$175 million, representing an increase of nearly 34% in volume and 73% in value year on year.