Vietnam rubber revenue is heading toward a new record as the Vietnam Rubber Industry Group forecasts nearly 33 trillion VND in 2026. The main driver is the strong upward trend in natural rubber prices on international markets, directly benefiting the largest player in the sector through tighter supply and steady demand from key export destinations.

Rising latex prices have significantly improved incomes for hundreds of thousands of rubber farming households in the Central Highlands and Southeast regions. This translates into lower raw material input costs for processing factories and strengthens the competitiveness of Vietnamese natural rubber against supplies from Thailand and Indonesia.

Amid global supply chain fluctuations driven by oil price volatility and logistics expenses, sustained high rubber prices create reinvestment opportunities. Funds can be directed toward upgrading processing technology and expanding sustainable plantations that meet stringent European and American buyer requirements.

For companies such as Đăng Quang operating in rubber manufacturing and export, abundant raw material supply and stable pricing are critical to controlling production costs. Positive price movements help mitigate risks from exchange rate swings and international freight costs, thereby optimizing gross margins.

The report notes, however, that the group’s net profit may fall short of expectations due to financial cost pressures and currency fluctuations. This requires supply chain participants to proactively implement risk-hedging strategies, including long-term contracts and export market diversification.

At the macroeconomic level, record rubber revenue will positively contribute to Vietnam’s export growth in 2026. Free trade agreements such as EVFTA and CPTPP continue to facilitate deeper penetration of Vietnamese natural rubber into premium markets while supporting rural economic restructuring.

Looking ahead, the industry outlook remains tied to crude oil price movements and global tire manufacturing demand. Businesses must closely monitor macroeconomic indicators and adjust production plans to fully capitalize on the current price uptrend.

Reference: VnExpress