Vietnam, a major player in the global rubber export market, experienced a decline in rubber exports during the first half of 2023. Despite this setback, there was a significant rebound in June, offering hope for the industry. In this blog post, we will delve into the details of Vietnam’s rubber export performance during this period and explore the factors that influenced these trends.
Overview of Vietnam’s Rubber Export Statistics
According to the General Department of Vietnam Customs, Vietnam exported approximately 766,000 tonnes of rubber worth US$1.05 billion in the first six months of 2023. However, these figures represented a decrease of 2.6% in volume and 22.9% in value compared to the same period last year.
Rebound in June’s Rubber Exports
Despite the overall decline in rubber exports, June witnessed a positive turnaround. The month brought in US$239 million from rubber exports, reflecting an impressive increase of 53.7% in volume and 51% in value compared to May. It is worth noting that the average export price per tonne stood at US$1,327, indicating a slight decline of 1.8% compared to May and a more significant decrease of 19.6% compared to June 2022.
Key Rubber Products for Export
During the opening five months of 2023, several key rubber products dominated Vietnam’s export market. These included mixtures of natural rubber or similar gums with synthetic rubber coded HS4002.80, SVR10, SVR3L, RSS3, Latex, SVR CV60, and SVR20.
Growth Trends by Rubber Code HS400280
Among the various rubber codes, HS400280 witnessed the strongest growth and accounted for an impressive 66.93% of Vietnam’s total rubber exports during this period. This particular category played a significant role in mitigating the overall decline in export performance.
Export Destination Analysis: China
China emerged as the primary destination for Vietnam’s natural and synthetic rubber exports, accounting for a staggering 99.82% of the total export volume. With 391,740 tonnes worth US$357.1 million, China experienced an increase of 11.7% in volume but a decrease of 11.5% in value compared to the same period last year.
Factors Influencing Rubber Export Performance
Several global factors have contributed to the decline in Vietnam’s rubber export performance during the first half of 2023. Experts point out that the world’s consumption demand for rubber is currently not high, resulting in lower export prices. Additionally, geopolitical tensions such as the Russia-Ukraine conflict and high inflation globally have further impacted rubber export prices and demand.
Outlook for Rubber Exports
Given the current market conditions and external factors affecting rubber demand and prices, it is anticipated that Vietnam’s rubber export prices will not bounce back significantly this year. The industry will need to closely monitor global trends and adapt strategies accordingly to navigate these challenging circumstances.
Government Initiatives to Support Rubber Industry
To address these challenges and support the rubber industry, the Vietnamese government has implemented various measures. These include promoting domestic consumption of rubber products, incentivizing research and development activities related to value-added rubber products, and exploring new export markets beyond China.
Potential Opportunities for Growth
Despite the temporary setbacks faced by Vietnam’s rubber industry, there are potential opportunities for growth on the horizon. As global economies recover from recent disruptions, there may be an upswing in rubber demand. Additionally, exploring new export markets and diversifying the range of rubber products could help mitigate risks associated with relying heavily on a single destination.
In conclusion, Vietnam’s rubber export performance in the first half of 2023 experienced a decline compared to the previous year. However, June’s rebound offers hope for the industry. Understanding the key trends, analyzing export destinations, and considering global factors influencing rubber prices are crucial for stakeholders in the Vietnamese rubber industry. By adapting strategies and exploring new opportunities, Vietnam can strengthen its position as a significant player in the global rubber market.