Việt Nam's rubber exports expected to reach $3.3 billion in 2024
Việt Nam's rubber exports expected to reach $3.3 billion in 2024
Việt Nam's rubber exports are expected to reach between US$3.3 billion and $3.5 billion in value by the end of the year, according to a forecast from the Vietnam Rubber Association.
A rubber processing plant in the Central Highlands Province of Gia Lai.— VNA/VNS Photo Vũ Sinh |
Over the past four months, the country shipped 499,000 tonnes of rubber for $743 million, up 6.4 per cent in volume and 14 per cent in value. In the first quarter alone, the export price of Vietnamese rubber increased by 5.3 per cent to $1,466 per tonne.
China remained the largest consumer of Vietnamese rubber during this time, accounting for 80 per cent of the country's total export volume, followed by India.
The association said that with the recovery of the global automobile and tyre industries (especially in China), Việt Nam's rubber exports will likely enjoy favourable conditions and are expected to surge in the second quarter.
At the same time, Mirae Asset Securities Co. has also delivered a positive forecast about the business performance of the Vietnam Rubber Group Joint Stock Company (VRG) — the leading rubber producer in the country, vnbusiness.vn reported.
VRG's revenue and after-tax profit in 2024 are expected to reach over VNĐ25.68 trillion and VNĐ4.9 trillion, up 16 per cent and 45 per cent, respectively.
This positive assessment is due to the significant rebound of rubber prices this year as demand from the global tyre industry grows, the online newspaper cited the Mirae Asset Securities Co. as saying.
Meanwhile, Phú Hưng Securities Co. has said in a recent report on Việt Nam's natural rubber industry that rubber prices will continue to increase in the 2024-25 fiscal year. The prices of TSR 20 rubber will likely reach $1.6-1.8 per kilo, up 10 to 20 per cent year-on-year.
According to the company, the growth prospects for businesses in the rubber industry are still positive in both the short and medium term.
The driving force will come from core business activities, and local rubber businesses will continue to benefit from the trend of increasing selling prices and the ability to increase export market share when other markets face supply shortages in the 2024-25 period.
General Secretary of the VRA Võ Hoàng An said there remained room for Việt Nam to increase its exports of rubber materials, as the country can produce 1.3 million tonnes of rubber latex annually but the local rubber processing sector only needs over 300,000 tonnes.
Under a strategy to develop plant cultivation through 2030, rubber yield will be raised to 1.8-2 tonnes per hectare.
Last year, Việt Nam exported 2.14 million tonnes of rubber, earning $2.89 billion, according to figures from the General Department of Customs.
The figures represented a year-on-year increase of 0.04 per cent in volume but a decline of 12.7 per cent in value.
China remained Việt Nam’s largest market, accounting for 79.22 per cent of the country’s total export volume and 78.08 per cent of value. It was followed by India, with 5.34 per cent and 5.49 per cent, respectively.
