Natural latex in primary forms market in Vietnam

Earlier Report Observations

From 2018 to 2023, the market volume for natural latex in primary forms in Vietnam contracted from 1 165 thousand tons to 1 035 thousand tons. This decline was primarily driven by a sharp rise in exports beginning in 2019, facilitated by state policies supporting the development of export markets and promoting the Vietnamese rubber brand internationally. A concurrent global shortage of natural rubber supply in 2018, caused by leaf disease outbreaks and adverse weather in key producing regions including Vietnam, helped sustain domestic production levels even as more raw material was shipped abroad.

Following the initial drop, market volume saw a modest recovery in 2020 and 2021, supported by the industry's deep integration into global supply chains. However, the sector's structural reliance on exporting raw materials, with only about 20% of natural rubber undergoing deep processing, limited value addition. By 2022, major listed companies like Vietnam Rubber Group (VRG) played a pivotal role, and China's position as the largest export destination sustained high overseas shipments, continually influencing the availability of latex for the domestic market.

In 2024, the implementation of the EU's Deforestation Regulation (EUDR) introduced stringent traceability and sustainability requirements for exporters. Simultaneously, a persistent global supply shortage, due to unfavorable weather and disease in major producing countries, maintained upward pressure on rubber prices. These conditions encouraged Vietnamese producers to invest in higher-value processing and sustainable production practices to maintain competitiveness.

Production natural latex in primary forms in Vietnam

In kind, 2017-2020, K t

From 2017 to 2020, Vietnam ranked as the world's third-largest producer of natural latex in primary forms.

Top producers of natural latex in primary forms, 2017-2020

World map of production of natural latex in primary forms, 2017-2020

Vietnam's production of natural latex in primary forms grew for the third consecutive year. In 2020, the country produced 1 226 K t, marking a 3.7% increase from the previous year. Over the period from 2017 to 2020, production rose by 12%, which translates to an average annual growth rate of 3.9%.

Annual dynamics of production in Vietnam in kind, 2017-2020, K t

Exports natural latex in primary forms from Vietnam

Exports in kind, K t

Export volumes showed significant fluctuations during this period. They reached their lowest point in 2018 at 0.0 K t and peaked in 2020 at 191.1 K t, representing a substantial 20.0% increase from 2019. The difference between these years was a {ampRatio}-fold shift, with the largest decline of 100.0% recorded in 2018.

Annual dynamics of product's exports from Vietnam in kind, 2017-2020, K t

Between 2017 and 2020, the main destinations for Vietnam's exports of natural latex in primary forms were China, accounting for 55.6% of exports in kind, the United States at 6.2%, and Turkey at 4.8%. Together, these three countries made up 66.6% of total export flows.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Vietnam in kind, 2017-2020

Exports in value, M $ US

Exports of natural latex in primary forms from Vietnam increased for the second year in a row. In 2020, exports totaled 204.2 M $ US, a sharp gain of 33.0% compared to 2019. From 2017 to 2020, exports grew by 73.6%, with an annualized rate of 20.2%. The lowest value was recorded in 2018 at 117.0 M $ US, which saw a decline of 0.5%.

Annual dynamics of product's exports from Vietnam in value, 2017-2020, M $ US

From 2017 to 2020, China was the leading market for Vietnam's exports in value terms, with a 51.7% share, followed by the United States at 6.9% and Turkey at 5.2%. Combined, these three markets represented 63.8% of total export flows.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Vietnam in value, 2017-2020

Imports natural latex in primary forms to Vietnam

Imports in kind, K t

In 2020, Vietnam imported 27.2 K t of natural latex in primary forms, a 12.3% year-over-year increase. Over the period from 2017 to 2020, imports rose by 32.7%, averaging 9.9% annually. The highest import volume was in 2018 at 27.6 K t, with a 34.6% increase that year, while the largest decline of 12.3% occurred in 2019.

Annual dynamics of product's imports to Vietnam in kind, 2017-2020, K t

Between 2017 and 2020, Thailand was the primary source for Vietnam's imports of natural latex in primary forms, accounting for 92.4% of total imports in kind.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Vietnam in kind, 2017-2020

Imports in value, M $ US

Vietnam imported 34.4 M $ US worth of natural latex in primary forms in 2020, showing a solid uptick of 15.8% from the previous year. The minimum value was recorded in 2019 at 29.7 M $ US, with a decline of 21.3%, while the maximum was in 2018 at 37.8 M $ US.

Annual dynamics of product's imports to Vietnam in value, 2017-2020, M $ US

Throughout 2017 to 2020, Thailand dominated Vietnam's imports in value terms, holding a 91.8% share of total flows.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Vietnam in value, 2017-2020