Vietnam Rubber Industry: current situation and prospect for sustainable development

1. VIETNAM RUBBER INDUSTRY:
CURRENT SITUATION AND PROSPECT FOR
SUSTAINABLE DEVELOPMENT
VIETNAM RUBBER ASSOCIATION

2.  A voluntary organization of
enterprises and units
operating in the Viet Nam
rubber industry and related
industries.
 Operating since 2004
 VRA is
 Member of VCCI, IRA and
ARBC
 Member of IRSG Panel
Associates
 Strategic collaborator of
ANRPC

3. MAIN ACTIVITIES:
- Assisting members in production, manufacturing, trade promotion,
market information, market research and development, training, awards
nominating…
- Protecting members’ legal rights and representing its members in national
and international relationships
- Strengthening the cooperation with international rubber organizations
and rubber consuming countries as well as rubber producing countries.
- Engaging to build up the Vietnam Rubber Industry Brand through using
the Certification Mark “VIET NAM RUBBER”
- Proposing policies to create favorable trade conditions and encourage
sustainable and responsible development.
ABOUT THE VIETNAM RUBBER ASSOCIATION

4. 136 members (October 2017)
Natural rubber: About 70% of total
export volume
Rubber products
Rubberwood and rubberwood
products
Services, research, training,
information…
VRA MEMBERS’ PRODUCTS

5. Certification Mark
“CAO SU VIỆT NAM / VIET NAM RUBBER”
Compliance with Statutes and Regulations
Selected product groups to be labeled
Certification Mark “VIET NAM RUBBER” are
divided into 3 groups as follows:
(1) Raw natural rubber;
(2) Manufactured rubber products;
(3) Rubber wood products.
For products / factories that meet the criteria
of the Regulation on Management and Use
Certification Mark, Appraisal Procedure as well
as Regulations of VRA and Government
Certified 13 members
with 58 products of
24 factories

6. THE OVERVIEW OF VIET NAM RUBBER INDUSTRY

7. Rubber products
Rubberwood and Rubberwood products
Natural rubber
The Current Supply Chain of Viet Nam Rubber Industry

8. Contribution of rubber sectors to total export
turnover of rubber industry, 2016
Total 2016:
Billion USD 4.847
(+16.4% YOY)
Source: Vietnam Customs Department; Compiled by VRA

9. NR production of top 6 countries in 2016 (‘000 tonnes)
Source: ANRPC, complied by VRA
0
500
1000
1500
2000
2500
3000
3500
4000
4500
Thailand Indonesia Vietnam China India Malaysia
4 347
3 208
1 035
774 674 624

10. RUBBER AREA AND PRODUCTION
BY REGION IN VIET NAM, 2016
Region Area
(ha)
Production(to
nnes)
Yield
(kg/ha)
North 30,500 43 600
Center 147,100 93,600 1,218
Highlands 252,900 193,700 1,382
South 543,000 748,000 1,850
Total 973,500 1,035,300 1,666
Source: Provincial Department of Agriculture and Rural Development;
Compiled by VRA

11. TREND OF RUBBER AREA DEVELOPMENT
BY SECTOR, 2001 –2016 (HA)
Source: Provincial Department of Agriculture and Rural Development;
Compiled by VRA
ed
80,066 ha
(8,2%)
474,627 ha
(48,8%)
418,813 ha
(43,0%)

12. The NR average yield of top 6 countries in 2016 (tonne/ha)
0
200
400
600
800
1000
1200
1400
1600
1800
Thailand Indonesia Vietnam China India Malaysia
1400
1045
1666
1075
1394 1402
Source: ANRPC, complied by VRA

13. VIET NAM’S NR EXPORT IN 2017
Source: Vietnam Customs Department; compiled by VRA
Viet Nam’s NR Export in 2017: 1.38 million tonnes; 2.25 billion USD

14. VIETNAM NR PRODUCTION AND CONSUMPTION
Vietnam NR production and consumption, 2010 - 2016 (‘000 tonnes)
Source: Vietnam Customs Department; Compiled by VRA
0
200
400
600
800
1000
1200
2010 2011 2012 2013 2014 2015 2016
Production Consumption

15. IMPORT
Viet Nam's NR import by market in 2016 (tonne)
Source: Vietnam Customs Department; Compiled by VRA

16. VIETNAM'S RUBBER PRODUCTS EXPORT & IMPORT IN 2016
Export and import values of Rubber Products from Viet Nam,
2012 – 2016 (Million USD)
 Export: 1.638 billion USD, an increase of 15.8% year-on-year, main
products: Tires, spare parts & technical product, outsoles, gloves…
 Import: 1.985 billion USD, an increase of 4.0% year-on-year; main
products: spare parts & technical products, tyres, rubber plates, hoses…
0
500
1000
1500
2000
2012 2013 2014 2015 2016
Xuất khẩu - Export Nhập khẩu - Import

17.  The export value of rubberwood and rubberwood products reached 1.538 billion
USD in 2016, an increase of 26.2% compared to 1.218 billion USD in 2015 and
occupied for 31.7% in the total export turnover of the Viet Nam rubber industry.
contributing 22.1% to total export value of Viet Nam’s wood industry, of which
accounting for 21.0% of wood raw materials export and 22.5% of wood products
export.
 The United States, South Korea, Japan, China and Canada are the 5 largest
destination of Vietnam rubberwood and rubberwood products
VIET NAM RUBBERWOOD AND RUBBERWOOD PRODUCTS
Export value of rubberwood and rubberwood products, 2015 – 2016 (Mn USD)
 The export value of rubberwood and rubberwood products reached 1.538 billion USD in
2016, an increase of 26.2%, contributing 22.1% to total export value of Viet Nam’s wood
industry.
0
200
400
600
800
1000
1200
2015 2016
336.9
386.67
881.8
1151.65
Rubberwood
Rubberwood products

18. PROSPECT FOR SUSTAINABLE DEVELOPMENT
OF VIETNAM RUBBER INDUSTRY

19. GOVERNMENTAL POLICIES AND PLANS
ON THE VIET NAM RUBBER INDUSTRY
1. Stabilizing rubber area, increasing its productivity and economic efficiency;
2. Restructuring rubber industry to enhance the value added and sustainable
development;
3. Closing natural forests to stop harvesting forest timber, not converting poor
natural forests into industrial crops;
4. Encouraging the development of rubber products and increasing natural
rubber consumption in the country; expanding production capacity of tires,
technical rubber products, conveyors...
5. Reducing deforestation and forest degradation; conserving, enhancing
forest carbon stocks and managing sustainably forest resources (REDD+),
testing and developing sustainable rubber production models;
6. Enhancing the competitiveness in export of Viet Nam rubber products.

20. PROPOSALS FOR DEVELOPING VIETNAM RUBBER
INDUSTRY IN SUSTAINABLE AND RESPONSIBLE WAYS
1. Building up and developing the trademark of Viet Nam rubber industry;
2. Developing guidelines to reduce environmental and social risks for
rubber growers and to produce sustainable and responsible products;
3. Strengthening market information, promoting trade, developing human
resources;
4. Proposing the establishment of the Coordination Board for rubber
industry by public-private partnerships to enhance the role of professional
associations and enterprises in managing and contributing to the industry’s
development strategy;

21. PROPOSALS FOR DEVELOPING VIETNAM RUBBER
INDUSTRY IN SUSTAINABLE AND RESPONSIBLE WAYS
5. Enhancing the quality of natural rubber and rubber products;
6. Implementing sustainable and responsible rubber production models,
biodiversity and income diversification, reducing greenhouse gas
emissions, increasing carbon stocks, protecting soil, waste treatment,
saving energy and materials ...;
7. Strengthening international cooperation to balance supply and demand
of natural rubber as a basis for stabilizing prices.

22. TOWARDS A FRIENDLY ENVIRONMENT
AND
COMMUNITY SUPPORT
SUSTAINABLE RUBBER DEVELOPMENT
177 Hai Ba Tru25234 - Fax: 84-28-39327341
Email: vrg@rubbergroup.vn - Website: www.rubbergroup.vn
VRA WILL ACCOMPANY WITH VIET NAM RUBBER ENTERPRISES
TOWARDS THE SUSTAINABLE AND RESPONSIBLE DEVELOPMENT
 Widely promote Certification
Mark “Viet Nam Rubber”
 Strongly support and
encourage members to follow
the Vietnam Forest
Certification Scheme
 Actively increase awareness
of sustainable and
responsible development
 Set up guidelines to reduce
environmental and social
risks for rubber growers

23. VIETNAM RUBBER ASSOCIATION
236 Nam Ky Khoi Nghia St.,
Ward 6, Dist. 3, Ho Chi Minh City, Viet Nam
Tel: (84.28) 3932 2605 - Fax: (84.28) 3932 0372
www.vra.com.vn
Email: office@vra.com.vn
THANK
YOU