Exerts explained that the increase of rubber price is due to the scarcity of natural rubber and soaring oil price, noting that rubber price would bounce back by the end of the first quarter.
Many forecast that Vietnam’s rubber sector will benefit from the global new price increase cycle in 2022-2024, which is caused by the supply crunch.
According to the Ministry of Industry and Trade (MoIT)’s Agency for Foreign Trade, Vietnam shipped abroad 1.97 million tonnes of rubber worth 3.3 billion USD last year, up 12.9 percent in volume and 39 percent in value year-on-year.
Such markets as China, India, the Republic of Korea, the US, Indonesia, Turkey, the Netherlands, the Czech Republic and Canada increased the import of Vietnamese rubber in the year.
Notably, Vietnam’s rubber shipments to the European Union (EU) in November stood at 100,000 tonnes valued at 175 million USD, increases of 33.7 percent in volume and 72.6 percent in value year-on-year.
The EU-Vietnam Free Trade Agreement (EVFTA) is expected to give momentum to Vietnam’s rubber exports to the EU- one of the biggest importers of Vietnamese agricultural products.
Experts suggested the domestic rubber sector promotes sustainable production in line with Forest Stewardship Council (FSC) standards to better meet requirements of the EU.