Vietnam Rubber Industry: current situation and prospect for sustainable development Vietnam rubber association

A voluntary organization of enterprises and units operating in the Viet Nam rubber industry and related industries. Operating since 2004 VRA is Member of VCCI, IRA and ARBC Member of IRSG Panel Associates Strategic collaborator of ANRPC

ABOUT THE VIETNAM RUBBER ASSOCIATION MAIN ACTIVITIES: - Assisting members in production, manufacturing, trade promotion, market information, market research and development, training, awards nominating… - Protecting members’ legal rights and representing its members in national and international relationships - Strengthening the cooperation with international rubber organizations and rubber consuming countries as well as rubber producing countries. - Engaging to build up the Vietnam Rubber Industry Brand through using the Certification Mark “VIET NAM RUBBER” - Proposing policies to create favorable trade conditions and encourage sustainable and responsible development.

VRA MEMBERS’ PRODUCTS 136 members (October 2017) Natural rubber: About 70% of total export volume Rubber products Rubberwood and rubberwood products Services, research, training, information…

“CAO SU VIỆT NAM / VIET NAM RUBBER” Certification Mark “CAO SU VIỆT NAM / VIET NAM RUBBER” Compliance with Statutes and Regulations Selected product groups to be labeled Certification Mark “VIET NAM RUBBER” are divided into 3 groups as follows: Raw natural rubber; Manufactured rubber products; Rubber wood products. For products / factories that meet the criteria of the Regulation on Management and Use Certification Mark, Appraisal Procedure as well as Regulations of VRA and Government Certified 13 members with 58 products of 24 factories

The overview of viet nam rubber industry

The Current Supply Chain of Viet Nam Rubber Industry Natural rubber Rubber products Rubberwood and Rubberwood products

Total 2016: Billion USD 4.847 (+16.4% YOY) Contribution of rubber sectors to total export turnover of rubber industry, 2016 Total 2016: Billion USD 4.847 (+16.4% YOY) Source: Vietnam Customs Department; Compiled by VRA

NR production of top 6 countries in 2016 (‘000 tonnes) Source: ANRPC, complied by VRA

Rubber area and production by region in Viet Nam, 2016 (ha) Production(tonnes) Yield (kg/ha) North 30,500 43 600 Center 147,100 93,600 1,218 Highlands 252,900 193,700 1,382 South 543,000 748,000 1,850 Total 973,500 1,035,300 1,666 Source: Provincial Department of Agriculture and Rural Development; Compiled by VRA

Trend of rubber area development by sector, 2001 –2016 (ha) ed 80,066 ha (8,2%) 474,627 ha (48,8%) 418,813 ha (43,0%) Source: Provincial Department of Agriculture and Rural Development; Compiled by VRA

The NR average yield of top 6 countries in 2016 (tonne/ha) Source: ANRPC, complied by VRA

Viet Nam’s NR Export in 2017 Viet Nam’s NR Export in 2017: 1.38 million tonnes; 2.25 billion USD Source: Vietnam Customs Department; compiled by VRA

Vietnam nr production and consumption Vietnam NR production and consumption, 2010 - 2016 (‘000 tonnes) Source: Vietnam Customs Department; Compiled by VRA

IMPORT Viet Nam's NR import by market in 2016 (tonne) Source: Vietnam Customs Department; Compiled by VRA

Vietnam's Rubber Products Export & Import in 2016 Export: 1.638 billion USD, an increase of 15.8% year-on-year, main products: Tires, spare parts & technical product, outsoles, gloves… Import: 1.985 billion USD, an increase of 4.0% year-on-year; main products: spare parts & technical products, tyres, rubber plates, hoses… Export and import values of Rubber Products from Viet Nam, 2012 – 2016 (Million USD)

Viet Nam rubberwood and rubberwood products The export value of rubberwood and rubberwood products reached 1.538 billion USD in 2016, an increase of 26.2% compared to 1.218 billion USD in 2015 and occupied for 31.7% in the total export turnover of the Viet Nam rubber industry. contributing 22.1% to total export value of Viet Nam’s wood industry, of which accounting for 21.0% of wood raw materials export and 22.5% of wood products export. The United States, South Korea, Japan, China and Canada are the 5 largest destination of Vietnam rubberwood and rubberwood products Viet Nam rubberwood and rubberwood products The export value of rubberwood and rubberwood products reached 1.538 billion USD in 2016, an increase of 26.2%, contributing 22.1% to total export value of Viet Nam’s wood industry. Export value of rubberwood and rubberwood products, 2015 – 2016 (Mn USD)

prospect for sustainable development of VIETNAM RUBBER INDUSTRY

GOVERNMENTAL POLICIES AND PLANS ON THE viet nam RUBBER INDUSTRY 1. Stabilizing rubber area, increasing its productivity and economic efficiency; 2. Restructuring rubber industry to enhance the value added and sustainable development; 3. Closing natural forests to stop harvesting forest timber, not converting poor natural forests into industrial crops; 4. Encouraging the development of rubber products and increasing natural rubber consumption in the country; expanding production capacity of tires, technical rubber products, conveyors... 5. Reducing deforestation and forest degradation; conserving, enhancing forest carbon stocks and managing sustainably forest resources (REDD+), testing and developing sustainable rubber production models; 6. Enhancing the competitiveness in export of Viet Nam rubber products.

proposals FOR developing VIETNAM RUBBER INDUSTRY IN SUSTAINABLE AND RESPONSIBLE WAYS 1. Building up and developing the trademark of Viet Nam rubber industry; 2. Developing guidelines to reduce environmental and social risks for rubber growers and to produce sustainable and responsible products; 3. Strengthening market information, promoting trade, developing human resources; 4. Proposing the establishment of the Coordination Board for rubber industry by public-private partnerships to enhance the role of professional associations and enterprises in managing and contributing to the industry’s development strategy;

proposals FOR developing VIETNAM RUBBER INDUSTRY IN SUSTAINABLE AND RESPONSIBLE WAYS 5. Enhancing the quality of natural rubber and rubber products; 6. Implementing sustainable and responsible rubber production models, biodiversity and income diversification, reducing greenhouse gas emissions, increasing carbon stocks, protecting soil, waste treatment, saving energy and materials ...; 7. Strengthening international cooperation to balance supply and demand of natural rubber as a basis for stabilizing prices.

Widely promote Certification Mark “Viet Nam Rubber” TOWARDS A FRIENDLY ENVIRONMENT AND COMMUNITY SUPPORT SUSTAINABLE RUBBER DEVELOPMENT 177 Hai Ba Tru25234 - Fax: 84-28-39327341 Email: vrg@rubbergroup.vn - Website: www.rubbergroup.vn VRA will accompany with Viet Nam rubber enterprises towards the sustainable and responsible development Widely promote Certification Mark “Viet Nam Rubber” Strongly support and encourage members to follow the Vietnam Forest Certification Scheme Actively increase awareness of sustainable and responsible development Set up guidelines to reduce environmental and social risks for rubber growers

VIETNAM RUBBER ASSOCIATION Ward 6, Dist. 3, Ho Chi Minh City, Viet Nam THANK YOU VIETNAM RUBBER ASSOCIATION 236 Nam Ky Khoi Nghia St., Ward 6, Dist. 3, Ho Chi Minh City, Viet Nam Tel: (84.28) 3932 2605 - Fax: (84.28) 3932 0372 www.vra.com.vn Email: office@vra.com.vn