Vietnam's rubber industry accelerates greening to overcome market pressure

In the context of export challenges, the Vietnamese rubber industry is facing the imperative to restructure towards a circular economy, green production, and increased added value. This is not only a path to adapting to the international market, but also the "key" to maintaining the industry's competitiveness and long-term development.

Speaking to reporters from the Industry and Trade Newspaper on the sidelines of the conference introducing the series of International Exhibitions for the paint, paper, rubber, plastics, and chemicals industries in Vietnam 2026, Mr. Nguyen Quoc Anh, Chairman of the City Rubber and Plastics Association (RUPA), analyzed that in 2024, Vietnam produced approximately 2 million tons of natural rubber, of which 70% was exported, bringing in nearly 3 billion USD. Notably, 30% of the rubber consumed domestically, through deep processing, generated export revenue of up to approximately 5 billion USD.

This figure shows that the added value from deep processing of rubber is much higher than that from exporting raw materials, affirming the key role of the processing industry in the sustainable development strategy of the sector.

Currently, about 70% of natural rubber is used in tire production, a field where natural rubber remains an irreplaceable material. This is a fundamental advantage for the Vietnamese rubber industry to continue developing, linked to the circular economy and ESG standards.

In response to the demand for a green transformation, the rubber industry is changing its approach from cultivation to production. In the raw materials stage, the goal is for approximately 50% of rubber plantations to achieve sustainable forest management certification. In the production stage, businesses must meet stringent environmental and chemical standards such as ISO 14000, RoHS, and REACH to penetrate developed markets.

Furthermore, the trend of extending product lifespan is becoming a mandatory requirement. Improving durability and reducing replacement frequency not only saves resources but also reduces costs and waste generation. In the tire industry, improving traction reduces rolling resistance, saving up to 15% on fuel, directly benefiting consumers and the environment.

A notable advantage of Vietnam is its near 100% collection rate of used rubber. Tires, inner tubes, shoe soles, and other discarded rubber products all have recovery value and are recycled.

Currently, Vietnam has established a system of rubber recycling plants and pyrolysis facilities. A large-scale pyrolysis plant in Ho Chi Minh City has a capacity of approximately 30 tons/day, processing tires, conveyor belts, shoe soles, and other waste rubber products. In addition, the country has five large-scale recycled rubber production plants along with many smaller facilities, capable of recycling most of the generated rubber waste.

From recycled rubber, many products have been effectively commercialized, such as technical rubber mats, wheel chocks, column covers, livestock barn mats, and materials for covering playgrounds and sports tracks. In many products, the proportion of recycled rubber can reach up to 80%, reducing costs while meeting the market's "green" requirements.

Besides recycling materials, rubber businesses are also promoting the use of renewable energy. Many factories are investing in solar power, switching from fossil fuels to biomass such as rice husks and sawdust for their boiler systems, thereby reducing emissions and production costs.

In reality, greening production in the rubber industry is no longer just a slogan. While businesses were previously hesitant to mention recycled materials, international partners are now proactively demanding transparency regarding the recycling rate in products. This has become a crucial criterion in supply chain assessments and purchasing decisions.

Given that the majority of rubber products fall under the supporting industries sector, requirements for quality, environmental standards, and ESG are becoming increasingly stringent. Supply chain inspections and assessments are conducted regularly, forcing businesses to adapt if they want to continue participating deeply in the global market.