Vietnam has the potential to expand much more in the coming years thanks to its abundant natural resources and the rising demand for rubber worldwide.
Overview of the rubber industry in Vietnam
Thanks to Vietnam's natural resources and the global soaring rubber demand, Vietnam has the potential to grow further in upcoming years. In 2021, the Vietnamese rubber yield surpassed major manufacturing countries such as India, Thailand, and Malaysia. Vietnam’s estimated rubber output was at 1.2 million tons in the year, accounting for 8.7% of the world’s market share. The industry remains export-oriented, with China, India, Taiwan, South Korea, and the United States being the main export destinations. Despite the global COVID-19 pandemic, Vietnam’s rubber export turnover in 2021 was up about 36.2% compared to a year earlier. Furthermore, Vietnam is also the 5th largest importer of rubber with a total value of 648 million USD in 2020.
Vietnam's Rubber Glove Production Potential
The global outbreak of the COVID-19 pandemic has impacted and accelerated the growth of the disposable latex glove industry during the last three years. Currently, the medical business is the major market for vinyl latex gloves. The demand for medical gloves for doctors and frontline workers fighting the pandemic has risen rapidly, while production costs have risen, resulting in a significant supply and demand imbalance. Vietnam, as one of the world's leading producers of natural rubber and latex materials, grasped the chance and encouraged the growth of the rubber glove manufacturing business. Every year, it is estimated that more than 70 billion pieces or 35 billion pairs of gloves are sold worldwide. Every year the glove industry grows 10-12%.
Governmental supports
The natural rubber industry is one of Vietnam’s most important agricultural and forestry industries. The Vietnamese government has focused on promoting the industry as a national brand to further push its growth. Ministries and localities have coordinated to implement supply-demand strategies to ensure the rubber supply matches demand. Latex glove manufacturers are encouraged to produce natural rubber latex and improve processing technology to remain competitive in the market. The Vietnam National Values Program allows rubber glove manufacturing companies to evaluate business performance and branding strategies, in which quality, innovation and pioneering capacity are the criteria. The main criterion for enterprises producing rubber gloves to be considered as national brands.
Vietnam is one of the fastest growing countries in terms of rubber glove production. Although the COVID-19 pandemic has had a strong impact on the entire production and processing process, Vietnam has made efforts to overcome the challenge. The Vietnamese government focuses on promoting the national brand of the rubber glove manufacturing industry to gain a competitive advantage in the global market, thereby helping Vietnam's rubber glove industry to develop rapidly.