Local businesses expect higher rubber prices than last year

The consumption volume of rubber by Vietnam Rubber Group (VRG) decreased in the first half of this year compared to the same period last year. However, its production and business results were higher. Specifically, VRG's General Director, Mr. Le Thanh Hung, estimated that the consumption of rubber by the end of June was 175,000 tons, which is 33.4% of the annual plan and 2,700 tons lower than the same period last year.

Despite lower rubber consumption, VRG's production and business results in the first half of this year were higher than those in the same period last year. Consolidated revenue for the entire Group reached 11,393 billion VND, and pre-tax profit was 2,502 billion VND (rubber accounts for the majority of VRG's total revenue).

The higher rubber prices in the first half of this year are a significant factor in VRG's increased production and business results, despite a decrease in consumption.

In comparison to 2024, the rubber prices in Vietnam have experienced a substantial increase, which has benefited not only VRG but also the entire industry. The first six months of 2025 saw Vietnam's rubber exports reach 694 thousand tons, with a value of 1.3 billion USD, according to data from Vietnam Customs. The value of exports increased by 16.2% due to higher selling prices, despite a 4.6% decrease in volume compared to the same period in 2024. The average rubber export price in Vietnam during the first half of this year was 1,856 USD/ton, a nearly 22% increase from the same period in 2024.

Mr. Le Thanh Hung stated that VRG will endeavor to maintain the Group's rubber prices at a level that is higher than the same period in 2024 for the remaining months of the year, although the US countervailing duties may prevent prices from being as high as they were in the first half of the year regarding rubber prices in the second half of this year.

The Ministry of Industry and Trade's Agency of Foreign Trade anticipates that rubber exports will maintain their upward trajectory in the latter half of 2025. This is due to the sustained demand in the Chinese market and the additional supply from the new harvest. Additionally, the Vietnam rubber industry's expansion in the remaining months of the year is significantly influenced by the robust recovery of global rubber prices.

According to the Agency of Foreign Trade, rubber prices reached their highest levels in the past 2-3 months in July on main global exchanges. While demand remains high, concerns regarding supply disruptions in top-producing countries such as Thailand and Indonesia due to adverse weather conditions are the primary factors.

During the dry season, Thailand and Indonesia, the two largest rubber suppliers in the world, have encountered unusually heavy rainfall, which has necessitated the postponement of harvesting at numerous rubber plantations. China has also experienced a decline in its domestic supply due to the wet weather.

Meanwhile, global rubber market sentiment has improved due to expectations of economic stimulus measures from China. Car sales in China increased for the fifth consecutive month in June 2025, which also contributes to the rubber market's outlook.

According to the General Administration of Customs of China, China imported 599 thousand tons of natural and synthetic rubber (including latex) in June 2025, a 27% increase from June 2024. China imported a total of 4.1 million tons of natural and synthetic rubber during the first six months of 2025, a 24% increase from the same period in the previous year. The demand for tire imports in the US market is also on the rise.

In anticipation of stable demand in the United States and China, global rubber prices are also buoyed by the increasing cost of oil. Biologically synthesized rubber frequently competes with natural rubber. Therefore, higher oil prices have a beneficial effect on the price of natural rubber.

VRG is committed to redefining the role of rubber enterprises in the global value chain; transitioning to a circular, green, and sustainable economic model; proactively integrating into international investment partnerships – particularly in its strengths such as land, wood processing, clean energy, and industrial park infrastructure.

*1 USD = 25.990 VND (Source: Vietcombank).