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In 2024, Vietnam鈥檚 rubber export sector has demonstrated notable growth, even amid a slight decline in volume. The country reported an 18% year-on-year increase in rubber export value, reaching $3.4 billion. This growth occurred despite a 6% reduction in volume, which dropped to 2 million tons. The surge in export value can be largely attributed to a rise in prices, which averaged $1,701 per ton in 2024, significantly higher than the $1,350 per ton average in 2023. As a result, the Vietnamese rubber industry managed to navigate global supply challenges while maintaining a strong market position.

A significant portion of Vietnam鈥檚 rubber export value came from rubber products, which earned $1.2 billion鈥攁n increase of over 13% from the previous year, according to Vietnam Customs. This growth highlights the increased demand for processed rubber goods in global markets. Meanwhile, Vietnam's imports amounted to about 1.9 million tons valued at $3 billion, which resulted in a trade surplus of $400 million.

The growth in Vietnam鈥檚 rubber export value aligns with global supply and demand dynamics. The Association of Natural Rubber Producing Countries (ANRPC) reported that in 2024, global natural rubber production totaled 11.2 million tons, while demand reached 12.1 million tons. This created a supply shortfall of approximately 900,000 tons, which further drove prices upward. Le Thanh Hung, Chairman of the Vietnam Rubber Association (VRA), attributed the rise in prices to this imbalance in supply and demand, noting that Vietnam's increased export earnings were a direct result of these market conditions.

Global demand for rubber, particularly from China, the world鈥檚 largest rubber importer, remained robust. China鈥檚 expansionary monetary and fiscal policies contributed to expectations of a strong economic recovery, further boosting demand for rubber in manufacturing sectors such as automotive tires and industrial equipment. As natural rubber production declined in key producing countries, the demand from China and other Southeast Asian markets helped sustain high prices throughout the year.

Looking ahead, the VRA predicts even more significant growth for Vietnam鈥檚 rubber industry in 2025. The association forecasts that exports could surpass $11 billion, representing a 10% increase from 2024. This growth is expected to be fueled by rising global demand, particularly in China, and the increasing emphasis on sustainable and eco-friendly materials in the rubber industry. The transition to recycled and environmentally friendly rubber products is expected to further bolster the sector鈥檚 value.

The performance of the Vietnamese rubber industry in early 2025 will likely be influenced by the economic policies in China, which remain a key driver for global rubber demand. The country鈥檚 heavy investments in industrial projects are expected to support continued demand for rubber materials, helping maintain high prices in the short term.