Metallurgy / Chemicals / Rubber & Plastics

According to the Huacheng Import and Export Data Observation Report, the report released at the Sixth Congress of the Vietnam Rubber Association (VRA) held recently in Ho Chi Minh City (2023-2028), affected by the COVID-19, Vietnam's rubber industry is facing many difficulties and challenges from domestic and foreign markets, affecting the competitiveness of the rubber industry and enterprises.

Chen Yushun, President of the Vietnam Rubber Association, stated that the competition among natural rubber producing and exporting countries in terms of price, product quality, commercial reputation, and ability to meet demand is becoming increasingly fierce, and sustainability standards are also becoming stricter. On the other hand, the structure and variety of natural rubber in Vietnam still rely on the Chinese market, partially meeting the requirements of other markets. Therefore, entering high-end markets such as the United States and Japan still faces many difficulties, as reported by Huacheng Import and Export Data Observation.

In addition, the imbalance of policy mechanisms has also led to difficulties for the rubber industry, such as some tax policies that have brought difficulties to rubber enterprises, and the lack of uniformity in the natural rubber quality management system across the country. At the same time, according to the free trade agreements in which Vietnam participates, natural rubber imports enjoy a zero tariff policy, which will encourage enterprises to prioritize the selection of imported materials from countries such as Thailand, Malaysia, and Indonesia. This creates competitive pressure on domestic rubber.

In addition, there is still a lack of technical barriers to prevent the import of inferior goods from other countries, causing harm to consumers, and engaging in unfair competition with domestic goods.

Despite many difficulties and challenges, representatives from the Vietnam Rubber Association still stated that the Vietnamese rubber industry has many development advantages and potential. According to international statistical data, the demand for natural rubber in the world is still on a continuous upward trend. The gap between supply and demand will be a great opportunity for Vietnam to increase natural rubber production, increase exports, and create employment opportunities for rural areas and related industries. Huacheng Import and Export Data Observation Report.

In addition, the Vietnamese government has identified the rubber industry as a multi-purpose industry, which not only contributes to the country's economic development but also helps improve the economic and social conditions in rural areas, while increasing forest coverage and protecting the environment.

Against the backdrop of difficulties in import and export activities caused by global supply chains, domestic enterprises prioritize using domestic rubber to produce high-quality export products and increase product added value. In addition, the national rubber park continuously promotes the application of technology, improves quality, and ensures that products meet industry standards. Huacheng Import and Export Data Observation Report.

Chen Qingnan, Deputy Minister of Agriculture and Rural Development of Vietnam, stated that in the overall context, the Vietnamese rubber industry still faces many difficulties and challenges, and the Vietnam Rubber Association needs to further play its role in creating convenient conditions for the development of members and enterprises.

Chen Qingnan stated that with the increasing emphasis on "responsible production" and "sustainable development" trends, the Vietnamese rubber industry must ensure product quality and improve competitiveness in the world market based on compliance with international standards.

At the same time, it is necessary to implement unified quality management nationwide, promote the application of advanced technology, adjust product structure according to market needs, strengthen deep processing, gradually promote the development of the rubber industry in depth, pay attention to promoting the structural adjustment of the rubber industry, improve international competitiveness, etc., Huacheng Import and Export Data Observation Report.