High rubber prices lift Vietnamese producers’ first-half earnings

Export prices rise as global supply remains tight

Vietnamese rubber producers reported stronger results in the first half of 2026 as natural rubber prices remained elevated. According to Vietnam’s Import-Export Department, the country’s average rubber export price reached $1,924 per tonne during the six months, up 3.7% from a year earlier. In June alone, the average climbed to $2,130 per tonne, 4.9% above May and 27.7% higher than in June 2025.

August 2026 rubber futures on the Japanese commodity market traded at around 420 yen per kilogram after touching 434 yen, their highest level in roughly 10 years. That remained below the 2011 record of 535.7 yen per kilogram. The Association of Natural Rubber Producing Countries says natural rubber consumption has exceeded supply in recent years. Extreme weather and the conversion of plantation land in Southeast Asia have constrained output, while high oil prices have increased synthetic rubber production costs and supported demand for the natural product.

Producers approach annual profit targets

Vietnam Rubber Industry Group, or GVR, achieved an average latex selling price of VND50.1 million per tonne. Consolidated first-half revenue reached VND19.396 trillion, equal to 57.4% of its annual plan, while pre-tax profit totaled VND6.038 trillion, or 87.5% of the target. The parent company recorded VND2.660 trillion in revenue and VND1.432 trillion in pre-tax profit.

Phuoc Hoa Rubber, or PHR, generated revenue of VND1.1833 trillion and pre-tax profit of VND591.6 billion, completing about 52% and more than 60% of its respective full-year plans. Tan Bien Rubber’s revenue rose 55.6% to VND726.9 billion, while net profit increased 15.7% to VND327.7 billion. The company had already fulfilled nearly 88% of its revenue plan and about 94% of its annual profit target.

Ba Ria Rubber reported a 66% increase in revenue to VND241.2 billion and a 108.9% rise in net profit to VND102.4 billion, supported by higher volume and prices, financial income and rubber-tree disposals. Hoa Binh Rubber’s revenue surged 239% to nearly VND160 billion, while net profit exceeded VND42.6 billion, approximately 46 times the year-earlier result. Tay Ninh Rubber recorded revenue of VND402.4 billion, up 12.3%, and net profit of VND141.8 billion, up 34.7%; nearly VND50 billion in other profit came from tree disposals.

PHR plans higher output and industrial land income

PHR expects to tap 4,521 tonnes of latex, purchase 3,500 tonnes and sell about 5,700 tonnes of finished latex in the third quarter, generating roughly VND319 billion in rubber revenue. For the second half, it plans to tap 9,347.7 tonnes, purchase 7,500 tonnes and sell approximately 15,550 tonnes, with expected revenue of about VND824 billion.

VIX Securities estimates that PHR’s 2026 rubber revenue could reach approximately VND1.954 trillion, up 19% year on year. Sales volume and average selling prices are expected to increase by 14.5% and 25%, respectively. Beyond rubber operations, PHR expects about VND3.511 trillion in compensation from the Bac Tan Uyen 1 industrial park and the remaining VSIP III area during 2026–2027, equivalent to nearly 40% of its current market capitalization.

China exposure remains a risk

The Import-Export Department cautioned that Vietnam’s rubber exports remain heavily dependent on China, making market diversification important for producers. High prices and the continuing global supply deficit may support earnings in coming quarters, but results will also depend on production volumes, cost controls and non-core income. Investor performance has already diverged: by July 30, HRC shares had risen 18.2% since the start of the year, TRC 16.9%, BRR 11.4% and GVR 2.1%, while PHR had fallen 4.1% and RTB more than 17%.