Source: nguoiduatin.vn
On the morning of March 27, the seminar “Promoting production, trade and sustainable rubber investment in Cambodia and Vietnam” took place to find solutions for the sustainable development of the rubber industry. The event takes place in the context of new rules from the EU on forest protection is posing great challenges for rubber supply chains.
Cooperation in the field of rubber
Vietnam and Cambodia have close relationships in natural rubber investment and trade. Currently, Vietnam Rubber Group (VRG) is a natural rubber investor in Cambodia with 16 rubber growing projects on a total area of nearly 90,000 hectares, and 7 processing facilities.
According to customs data, in 2024, Vietnam imported nearly 1 million tons of natural rubber from Cambodia, accounting for more than 64% of the total imported rubber, with a value of more than US $ 1.2 billion. This figure is nearly equal to the domestic rubber production.
Meanwhile, China is Vietnam’s largest rubber export market, with 1.45 million tons of natural rubber exported to this market in 2024, reaching US $ 2.4 billion. In addition, the EU, the United States, Korea and Japan are also important export markets.
Ms. Phan Tran Hong Van – Deputy General Secretary of Vietnam Rubber Association.
In addition to the development potential, Vietnam – Cambodia’s rubber industry is also facing major challenges from international regulations. Notably, the EU has passed the regulations on forest loss (EURR), prohibiting rubber import if the production process causes forest loss. According to this regulation, importers must ensure their products can be traced to the plot of rubber.
Speaking at the event, Ms. Phan Tran Hong Van – Deputy General Secretary of the Vietnam Rubber Association said: “EURD sets both opportunities and challenges for the rubber industry. Enterprises with a solid foundation for quality management and the environment will have advantages. However, ensuring traceability is still a big challenge, especially with complex supply chains today.”
Challenges from the new EU regulations
The European Union’s anti -forest loss (EUR) is creating strict requirements for the rubber industry, especially in the Mekong River area. According to Mr. To Xuan Phuc – an expert from the Forest Trends, one of the biggest challenges stemming from the scattered and fragmented production of rubber industry in the region.
“The ratio of small rubber in Cambodia is 44%, Laos 30%and Vietnam is about 50%. Unlike large enterprises with strict management systems, small household households often lack full legal documents and have difficulty in traceability as required by EUDR,” Phuc said.
Mr. To Xuan Phuc – an expert from the Forest Trends.
One of the main barriers is to require traceability to the plot of land. In Vietnam, 66% of rubber gardens of households have an area of less than 3 hectares. This not only increases the risk of not meeting the export standards but also pushes the cost of the business.
Regarding the above issue, Mr. Truong Tat Do – representative of the Forestry and Forest Protection Department (Ministry of Agriculture and Environment) emphasized: “Currently, the small rubber is difficult due to the lack of information about the cultivated land parcel, the recording of production is incomplete, making the process of providing evidence to prove the origin become complex.”
In addition to traceability, rubber industry in the region also faces risks of the legality of raw materials. A worrying situation is the stealing rubber, especially in Laos.
According to some businesses, about 20% of their rubber latex is stolen, and most of this amount is put into export. This creates a great legal risk for Vietnamese enterprises if they import this unclear raw material.
The EUDR stipulation opens up opportunities but also put rubber industry before the difficult problem of traceability, requiring businesses to adapt to meet strict standards.
In order to solve the problem, representatives of the Department of Forestry and Forest Protection recommend that farmers need to coordinate the establishment of cooperative groups to build a database of planting areas together.
At the same time, the management agencies need to promote training for farmers on the records of production and storage of rubber latex in accordance with standards.
According to Mr. Truong Tat Do, to overcome the challenges set by Eud, the rubber industry needs to have a synchronous solution soon. The improvement of the data system, supporting households to comply with the regulations and ensuring the legality of the planting land will be the key factors to help businesses maintain competitiveness in the EU market. “If there is no timely preparation, many businesses may lose the opportunity to export to this important market,” he emphasized.
Facing the pressure from Eud, many Vietnamese businesses have actively adjusted to meet new standards. The Vietnamese government is also coordinating with the rubber industry to ensure businesses have the best preparation.
According to EUDR regulations, importers must ensure their products can be traced to the plot of rubber.
Mai Vinh Company is currently cooperating with more than 3,000 farmers to grow rubber to produce natural rubber to meet the requirements of the EU market. “Working with a large number of small farmers is very difficult, but we have no choice but to cooperate with them. They are the backbone of the rubber industry,” said Dang Thi Hoa Mai, representative of the company.
In addition, Chu Se Kampong Thom Rubber Joint Stock Company (VRG) has invested heavily in digital technology to improve transparency and traceability. With an area of 16,000 hectares of rubber in Cambodia, the company is building a sustainable production model according to international standards.
