NỘI DUNG TÓM TẮT THUYẾT TRÌNH (SLIDES)

1. Title Slide
 Title: Rubber Viet Nam’s export industries in period 2021 - 2023
 Names, group, class, subject
 Professor
 Date
 Logo FPT University
2. Introduction

Speaker note: In this presentation, we will analyze the current situation of Vietnam's rubber
export activities from 2021 to 2023. We will explore Vietnam's position in the global rubber
industry, key characteristics of its export market, and the SWOT of rubber it faces.

Currently, rubber is being one of the most precious products concerning agriculture and
industry in Vietnam. The year 2002 the rubber industry went up six times in the rubber selling
industry which was only reduced in 2011 signaling the exceptional proven role of the Vietnam
Rubber Group (VRG). VRG Group attained a record-breaking total revenue amounted to more
than 24,485 billion dongs accounted for 445.000 tons, 4.7% growth compared to that of the
previous year (2022) in the year of 2023. The rubber industry has much room for export which it
can expand through trade liberalization agreements. Nevertheless, against the international
competition and dealing with export obstacles has become some problem for the exportation.

3. Rubber Industry in Vietnam

  Vietnam is one of the leading rubber producers globally, ranking 5th in plantation area
and 4th in output.
 The industry plays a significant role in Vietnam's agriculture and industry, contributing
substantially to the country's economy.
 Vietnam Rubber Group (VRG) is a major player in the industry, achieving a record-
breaking revenue in 2023.

Speaker Notes: Vietnam boasts a strong foundation in the rubber industry. Its vast plantation
area and significant output position it as a key player in the global market. VRG's success
further highlights the industry's potential to contribute to Vietnam's economic growth.

4. Major Export Markets and Their Characteristics

- Key export markets: China (dominant), India, Korea, United States.

- Focus on increasing export value by:

 Importing high-quality rubber for tire production (SVR 10 & 20).

 Shifting towards finished product manufacturing.

Speaker Notes: China is Vietnam's primary export market, accounting for a substantial portion
of rubber exports. However, Vietnam aims to diversify its export base by focusing on high-value
rubber grades and finished products to increase export value and competitiveness.

5. Factors Influencing Vietnam's Rubber Export Market

 Domestic factors:
o Plantation area and worker productivity
o Rubber processing capacity (focus on SVR 10 & 20 for tires)
o Government policies (subsidies, regulations)
 International factors:
o Import demand from other countries
o Price fluctuations in the global market

Speaker Notes: Several domestic and international factors influence Vietnam's rubber export
market. Domestically, factors like plantation size, worker efficiency, processing capabilities, and
government policies play a crucial role. Internationally, the import demand from other countries
and global market price fluctuations significantly impact Vietnam's rubber exports.

6. Comparative Analysis with Other Exporting Nations

 Expenditure Vietnam Thailand Indonesia
Rubber planting area Big Big Big
Productivity Light High High
Processing capacity Develop Well development Well development
Production cost Short Medium Short
Export market Focus on China Diversity Diversity
Sustainable practices Developing Developing Developing
High productivity,
Advantage Low labor costs Low labor costs
good infrastructure
Low productivity, Infrastructure
Challenge Labor costs are higher
dependent on China limitations
Increase productivity,
Maintain Improve
diversify markets,
Solution productivity, improve infrastructure and
apply sustainable
product value develop markets
practices

 Production and Yield:

o Vietnam: Lower yield per hectare compared to Thailand and Indonesia.
 Processing Capacity:
o Vietnam: Focus on low-grade rubber (SVR 10).
o Thailand & Indonesia: Established infrastructure for diverse rubber types.
 Production Cost:
o Vietnam: Lower labor costs but offset by inefficiencies.
o Thailand: Slightly higher labor costs but efficient infrastructure.
o Indonesia: Potentially even lower labor costs but faces infrastructural limitations.
 Export Market:
o Vietnam: Reliant on China, making it vulnerable to fluctuations.
o Thailand & Indonesia: More diversified export base (US, EU, Japan).
 Sustainability:
o Vietnam: Growing focus on sustainability, room for improvement.
o Thailand & Indonesia: Implementing sustainability measures but face challenges.

Speaker Notes: Compared to Thailand and Indonesia, Vietnam has a lower yield per hectare and
limited processing capacity for high-grade rubber. While Vietnam enjoys lower labor costs,
inefficiencies hinder its overall production cost. Additionally, Vietnam's heavy reliance on the
Chinese market makes it susceptible to external factors. Although Vietnam is taking steps
towards sustainable practices, it still lags behind its competitors.
7. Future Outlook of Rubber Exports from Vietnam

 Promising opportunities:
o Rising global demand for electric vehicles, requiring specialized tires.
o Increasing rubber prices due to high demand in China and lower output in
Thailand.
 Challenges:
o Fierce competition
o Depends on the Chinese market
o Product quality is not consistent

8. SWOT Analysis of Vietnam's Rubber Export Industry

Speaker Notes: To understand Vietnam's position in the global rubber export market, a SWOT analysis is
essential. This analysis will assess the industry's strengths, weaknesses, opportunities, and threats. By
identifying these factors, Vietnam can capitalize on its advantages, address its shortcomings, leverage
emerging opportunities, and mitigate potential risks.

9. Strengths of Vietnam's Rubber Export Industry

 Abundant raw materials:

o 5th in global rubber plantation area.
o 1.1 million tons of rubber output in 2023 (4th globally).
 Large production capacity:
o 70 rubber processing factories with a total capacity of over 1.3 million tons/year.
o Growing focus on modern technology in processing facilities.
 Competitive price:
o Lower labor costs compared to other rubber-producing countries.
Speaker Notes: Vietnam boasts significant strengths in its rubber export industry. The country's
vast rubber plantation area positions it as a major supplier of raw materials. Furthermore,
Vietnam has invested in building a large processing capacity with a growing focus on modern
technology. This, combined with lower labor costs, allows Vietnam to offer rubber at competitive
prices in the global market.

10. Weaknesses of Vietnam's Rubber Export Industry

 Limited competitiveness of enterprises:

o Predominance of small and medium-sized enterprises lacking resources for
scaling up.
o Limited capital for investment and international market access.
 Export market concentration:
o Overreliance on China (79.63% of export quantity and value in 2023).
o Limited market diversification.

Speaker Notes: Despite its strengths, Vietnam's rubber export industry also faces weaknesses.
The majority of Vietnamese rubber exporters are small and medium-sized enterprises. These
businesses often lack the capital and resources to invest in expanding their operations and reach
new international markets. Additionally, Vietnam's heavy reliance on the Chinese market makes
it vulnerable to fluctuations in Chinese demand and prices.

11. Opportunities for Vietnam's Rubber Export Industry

 Rising demand in China:

o Growth in China's electric vehicle industry creating a shortage of rubber for tire
production.
o Potential for Vietnam to increase export prices due to high demand.
 Competitor disruptions:
 o Unstable weather conditions impacting rubber production in competitor countries
(e.g., Thailand).
o Opportunity for Vietnam to solidify its position in the import-export market.
 Synthetic rubber price increase:
o Rising crude oil prices leading to higher synthetic rubber prices.
o Increased demand for natural rubber as a more cost-effective alternative.

Speaker Notes: Several promising opportunities are emerging for Vietnam's rubber export
industry. The growing electric vehicle industry in China is creating a surge in demand for
rubber, potentially benefiting Vietnamese exporters. Additionally, unstable weather conditions
affecting rubber production in competitor countries present an opportunity for Vietnam to
solidify its market position. Furthermore, the rising price of synthetic rubber due to increasing
crude oil prices could lead to a shift towards natural rubber, creating another opportunity for
Vietnam.

12. Threats to Vietnam's Rubber Export Industry

 Climate change:
o Droughts, floods, and heat negatively impacting rubber quality and quantity.
o Predicted increase in the area of low-yield rubber trees.
o Lack of effective measures to adapt to climate change.
 Market demands for product quality:
o Growing demand for sustainable and traceable rubber.
o Only 10% of Vietnamese rubber output meeting international sustainability
standards.

Speaker Notes: Vietnam's rubber export industry also faces significant threats. Climate change
poses a major challenge, with factors like droughts, floods, and heat negatively impacting
rubber production. Additionally, the international market's increasing demand for sustainable
and traceable rubber highlights an area where Vietnam needs improvement. Currently, only a
small portion of Vietnamese rubber meets these international standards.