In order to export rubber to the EU to overcome the "fence" of Anti-Deforestation Regulations (EUDR), the biggest difficulty of the Vietnamese rubber industry lies in the raw material supply of domestic smallholder rubber and the raw materials. imported rubber…
Rubber production needs to meet the requirement of not causing deforestation.
According to the Ministry of Agriculture and Rural Development, in the first 4 months of 2024, Vietnam's natural rubber exports reached 499 thousand tons, worth 743 million USD; increase 6.4% in volume and 13.8% in value over the same period in 2023. China is still Vietnam's largest rubber export market with about 384 thousand tons, worth nearly 544 million USD . Ranked second is India with nearly 38.5 thousand tons, worth nearly 60 million USD.
TOTAL EXPORT VALUE OF THE ENTIRE RUBBER INDUSTRY REACHES 9.4 BILLION USD IN 2023
Speaking at the online seminar "The current state of the supply chain of Vietnam's rubber industry: Preparing to meet European anti-deforestation regulations" taking place on the afternoon of May 17, 2024 in Ho Chi Minh City by the Vietnam Rubber Association Nam (VRA) and Forest Trends jointly organized, Mr. Vo Hoang An, General Secretary of the Vietnam Rubber Association (VRA), said that in 2023, the total export value of the entire rubber industry will reach more than 9 billion VND. .4 billion USD, including: natural rubber, deeply processed rubber products and rubber wood.
"Although not the leading export market of the entire Vietnamese rubber industry, the EU is still an important customer for natural rubber industry groups and deeply processed rubber products. The EU is also a potential market , has high purchasing power and plenty of room."
Mr. Vo Hoang An, General Secretary of the Vietnam Rubber Association (VRA).
Deeply processed rubber products reach the highest turnover, with 4.4 billion USD in 2023, an increase of 3.5% compared to 2022. Of which, the export turnover of this product group to the EU is estimated at nearly 375,000 USD. 3 million USD, the most is tire products estimated at 268.2 million USD, accounting for 71.5% of export value in the EU market.
Vietnam's natural rubber exports in 2023 will reach more than 2.1 million tons with a value of nearly 2.9 billion USD, down 0.1% in volume and down 12.8% in value compared to 2022. Vietnam Vietnam has exported rubber to more than 80 countries, China leads, accounting for 79.6%, second is India 5.3%, third is the EU with a total export volume of 66,472 tons, accounting for 3.1%. market share, value reached nearly 94.3 million USD. In addition, rubber wood exports bring in 2.2 billion USD in 2023.
RUBBER INDUSTRY FACES EUDR
Mr. Hoang Thanh, representative of the European Union Delegation to Vietnam, said that the European Union (EU) has issued the Anti-Deforestation Regulations (EUDR). This regulation officially takes effect from June 29, 2023. According to EUDR, 7 groups of products, including rubber, will be banned from import into the EU if the production process of these products violates the regulations of the exporting country and/or causes deforestation and forest degradation. .
According to Mr. Hoang Thanh, countries around the world had different reactions when the EC issued the EUDR. In September 2023, Ambassadors of 17 countries signed and forwarded a joint letter to the EU's highest-level leaders arguing that the EUDR Regulations are unreasonable.
In October 2023, the Association of Natural Rubber Producing Countries (ANRPC) issued a joint communiqué, calling on the EU to consider recognizing rubber as a forest plant, considering planting rubber trees as afforestation. . In March 2024, nearly 20 out of 27 EU member states asked the European Commission (EC) to delay the implementation of the EUDR. However, in April 2024, more than 170 organizations from around the world sent a letter to the EC President calling on the EC not to move the deadline, quickly implement and ensure all relevant parties comply with the EUDR. .
"To meet the requirements of the EU Regulation on products that do not cause deforestation (EUDR), rubber products that want to be imported into the EU market need to ensure that they have fully implemented the regulations on Due diligence, including tracing the origin of products to each plot of land where those goods are produced.
Mr. Hoang Thanh, representative of the European Union Delegation to Vietnam.
Assessing the impact of EUDR on Vietnam's rubber industry, Mr. Vo Hoang An - General Secretary of the Vietnam Rubber Association, said that Vietnam currently has 918,000 hectares of rubber plantations, including smallholder rubber sources. 52% and large rubber plantations account for 48%. Vietnam has more than 200,000 hectares of rubber that have achieved VFCS/PEFC sustainable forest management certification, with 100% of this area belonging to the Vietnam Rubber Industry Group. A small area of about 6,000 hectares belonging to a number of private enterprises and smallholder groups has been granted FSC sustainable forest management certification.
“Vietnam's large rubber plantation areas, especially those belonging to the Vietnam Rubber Industry Group, do not face difficulties in meeting EUDR requirements, because these areas have been Having grown rubber for a long time, the land has clear origins and boundaries and has full legal documents on land use rights" - Mr. Vo Hoang An emphasized.
However, in addition to the no-deforestation criterion, EUDR also includes other criteria, including legality of land use rights, ensuring land has clear boundaries and informing customers of the location. the geography of the plot and the timing of harvest/production. These will be difficulties for more than 260,000 smallholder rubber growing households.
Agreeing with this opinion, Mr. Nguyen Vinh Quang, research officer of Forest Trends Organization, said: "The biggest difficulty of the Vietnamese rubber industry in ensuring rubber traceability lies in the supply part. raw materials for domestic smallholder rubber and imported rubber." Currently, the smallholder supply chain is relatively complex, with rubber exploited from households going through many stages before being processed Number of smallholder rubber areas without land use certificates.
"In addition to domestic supply, Vietnam's rubber processing industry also imports a large amount of raw rubber from Cambodia and Laos. Information about imported supply from Cambodia and Laos is currently very little, causing the current import supply chain to Because it does not allow traceability," Mr. Nguyen Vinh Quang analyzed.
WHAT NEEDS THE RUBBER INDUSTRY TO DO?
In June 2023, the Ministry of Agriculture and Rural Development developed a National Action Plan Framework for the agricultural sector to respond to the EUDR. In September 2023, the Minister of Agriculture and Rural Development made proposals to the EC agency: Publish specific procedures for implementing EUDR, issue technical documents guiding to have a plan. timely adaptation planning; There are solutions to minimize costs in implementing EUDR...
According to Mr. Vo Hoang An, to adapt to EUDR, the Association has been consulting a number of methods that have been developed by other industries and countries around the world. That is, digital mapping and traceability down to the orchard level, digitizing the first step of the agricultural value chain can lay the foundation for comprehensive sustainability interventions.
The Vietnam Rubber Association proposed that the Ministry of Agriculture and Rural Development strengthen recommendations to the EU on a specific roadmap for EUDR implementation, issue technical guidance documents for affected industries, including the rubber industry, to have timely adaptation plans.
At the same time, we recommend that the State research solutions to support businesses and improve the capacity of small rubber farmers in adapting to EUDR, especially on location data and origin traceability. Along with that, integrate rubber data into the national forest information/database system, production area information system, support parties in legal issues in land use and application. traceability methods.
https://vneconomy.vn/nganh-cao-su-viet-nam-san-sang-ung-pho-voi-eudr.htm
