Vietnam's 2023 rubber exports fall 13% on lower prices

Vietnam's rubber exports reached about 2.14 million tons worth $2.89 billion in 2023, down 0.04% in volume and 12.7% in value compared to 2022, according to the Ministry of Industry and Trade.

The lower export turnover was driven by a 12.7% year-on-year decrease in average export price to $1,350 per ton during last year.

In 2023, Vietnam's rubber exports faced many difficulties due to a sharp decrease in prices, causing export value to fall from the same period last year. Meanwhile, the restoration of production activities in China was weaker than forecast, leaving consumption and the price of rubber low.

Therefore, rubber exporters need a strategy to increase the rubber processing ratio rather than raw rubber to improve export value, the ministry recommended.

In the coming time, Chinese demand will be a key factor affecting rubber price movements in Vietnam. In addition, the fluctuations of oil prices due to fears of trade being interrupted on the Suez Canal will also indirectly affect rubber prices. In 2024, China is expected to increase car consumption as well as production activities, leading to increased demand for rubber to produce tires and other products. Meanwhile, nearly 80% of Vietnam's total rubber exports are to China.

Vietnam is now the world’s third largest rubber exporter, with its products present in more than 80 countries and territories, according to the Ministry of Agriculture and Rural Development. Vietnamese rubber is stretching deeper into important markets such as China, America, Europe, South Korea, and India.