Source: vietnamplus.vn
European and American countries are making efforts to restore their economies and control inflation stably, creating favorable conditions for Vietnam’s rubber processing and export industry to develop.
Rubber industry experts recognize that the increase in rubber prices from the end of 2021 to now has created excitement for both rubber growers and rubber processing and export enterprises.
This price increase helps Vietnam’s rubber industry increase by 28% in value.
The market demand is still very large
According to customs statistics, in the first six months of 2022, rubber export turnover is estimated at $1.54 billion, output 772,000 tons, up more than 8% in volume and 28% in value over the same period in 2021.
Information from the Vietnam Rubber Association, the average export price of rubber in June 2022 reached nearly 1,700 USD/ton.
In general, in the first months of 2022, many types of rubber exports increased sharply in both volume and value compared to the same period in 2021.
In Vietnam’s rubber import markets, China accounts for 99.7% of Vietnam’s total natural and synthetic rubber exports, with an increase in exports in both volume and value. in the first months of the year.
According to the Import-Export Department (Ministry of Industry and Trade), Thailand, Vietnam, Malaysia, Japan and South Korea are the 5 largest markets supplying rubber to China. During this time, China stepped up import rubber from a number of markets such as: Thailand, Vietnam, Japan, Laos, Myanmar, Côte d’Ivoire… and Vietnam is the second largest rubber supplier to China with nearly 1 billion USD, up 4.1% over the same period in 2021.
Each month, China consumes about 500,000 tons of natural rubber, while the domestic supply can only meet about 115,000 tons. Therefore, China’s rubber import demand is quite large.
However, supply chain disruptions due to China’s “Zero COVID” policy will affect China’s rubber consumption in 2022.
As for other markets such as the European Union (EU), the US, and India, the forecast that the uptrend will continue thanks to the gradual recovery of the economy in these markets will be an optimistic signal for high exports. su Vietnam.
According to the forecast of the General Department of Rubber of India, in 2022, the country’s natural rubber output will only reach 800,000 tons while the consumption demand will reach 1,240,000 tons. Thus, India needs to import 440,000 tons of rubber.
Currently, the demand for natural rubber is still very large, including the source of rubber materials with FSC (Forest Stewardship Council) certification, Mr. To Xuan Phuc, Principal Analyst According to a book by Forest Trends, rubber consumption in the world is changing a lot.
Regulations on the legality and sustainability of input rubber materials to create products are increasingly strict. Besides, the demand for sustainable natural rubber is existing in Vietnam.
There are currently two sustainability certification systems in the world: PEFC (Forest Certification Program) and FSC (Forest Stewardship Council). The FSC criteria are considered to be stricter than those of PEFC.
Vietnam has developed a National Forest Certification System (VFCS). The system is currently recognized by PEFC. Up to now, it has been difficult for Vietnam about 97,300 ha of rubber area to get VFCS certificate. This entire area is owned by state rubber companies.
With the areas granted this certification system, although it is still low compared to the total rubber area of the country, it also contributes to promoting the rubber industry to increase competition, bringing the price of rubber to increase in proportion to quality.
Prepare the source material
According to statistics of the Vietnam Rubber Association (VRG), Vietnam’s rubber area in 2021 will reach nearly 939,000 hectares; in which, the smallholder area accounts for about half. The rest is the area of companies, with the area of state-owned (state-owned) companies accounting for nearly 40%, and private companies accounting for nearly 10%.
Compared with the increasing demand of countries after economic recovery, the world’s natural rubber output will reach just over 13.8 million tons in 2021, while the world’s demand is more than 14 million tons. million tons.
Thus, the shortage of rubber raw materials is about 200,000 tons. The global supply of rubber is continuing to fall short of demand and will increase the shortfall in the following years until 2028, possibly even until 2031 due to the widening supply and demand gap, representative of Vietnam Rubber Group (VRG) forecast.
In order for Vietnam’s rubber industry to continue to develop, in the first 6 months of this year, rubber raw materials, especially rubber rubber material Sustainability is always processed by businesses and rubber export focus.
Therefore, in parallel with the existing rubber garden, rubber processing and exporting enterprises have a strategy of closely linking with smallholder rubber growers, purchasing rubber latex raw materials at high prices. 5-10% more than the market.
According to Mr. Lai Minh Xuan, Director of the rubber processing factory, belonging to Binh Thuan Rubber Company, when the enterprise purchases rubber latex from smallholder rubber households, the business always makes payment. to growers in the fastest time, to encourage the spirit of production and association of smallholder rubber farmers.
At the same time, in order to help smallholder rubber farmers increase productivity and quality of latex, businesses have also actively researched and provided them with standard, quality, productive, and profitable varieties. for farmers to grow smallholder rubber. Thereby, helping businesses create a stable raw material area, manage latex quality, and develop the market.
In each locality that produces rubber trees, almost all smallholder rubber growers want high-yield, high-priced rubber trees. Therefore, linking with businesses is an excitement of rubber farmers.
Ms. Ro Cham H’Bun, from Kenh Chop village, Ia Nhin commune, Chu Pah district, Gia Lai province shared, her family has 2.5 hectares of rubber, the rubber latex is very hard to scrape, starting at 2 am. and ends at 6am every day.
However, this hard work paid off when the amount of latex was purchased by Chu Pah Rubber One Member Limited Liability Company at a higher price than the market. After deducting expenses, she earns 35 million VND/ha. This year, the price of rubber increases more, so the profit can increase to about 40 million VND/ha.
With each field in the agricultural industry, it is necessary to have a source of raw materials for processing, from which businesses can sign export contracts.
With the warning that the source of rubber is in short supply, the source of raw materials is the focus of production and export in the last 6 months of the Vietnamese rubber industry.
To be able to fulfill the export target of 3.5 billion USD as set out by the Ministry of Agriculture and Rural Development, enterprises in the rubber industry are moving to closely link with new smallholder rubber households. can ensure production, meet the target.
