Market and product

Content editor: Bảo Hiền

From the end of 2026, companies exporting natural rubber and rubber-based products, including tires, to the European Union (EU) will have to prove that their raw materials are not linked to deforestation if they want to maintain access to the market. The new regulation is expected to have a significant impact on the global rubber supply chain, including Vietnam, one of the world's leading producers and exporters of natural rubber.

The requirement stems from the EU Deforestation Regulation (EUDR). Under the regulation, companies placing natural rubber or rubber-containing products on the EU market must demonstrate that the raw materials were not sourced from land deforested after December 31, 2020, and that they comply with the laws of the country of production. In practice, this means businesses must establish full traceability throughout the supply chain, from plantations to finished products.

Natural rubber is one of seven commodities covered by the EUDR, alongside timber, palm oil, soy, coffee, cocoa, and cattle. According to industry estimates, the tire sector consumes approximately 70% of the world's natural rubber production, making it one of the industries most directly affected by the new requirements.

Most natural rubber is produced in the Asia-Pacific region, with Thailand, Indonesia, and Vietnam ranking among the world's largest producers. For Vietnam, the EU remains an important export market for both natural rubber and rubber products, meaning compliance with the EUDR has become a strategic priority for many manufacturers.

Companies have just over a year to prepare

After several delays, the EU is scheduled to begin enforcing the EUDR for large and medium-sized companies on December 30, 2026. Small and micro enterprises will be granted an additional six months to comply.

Although several EU member states have called for a further extension of the transition period to give businesses and regulators more time to prepare, industry experts believe companies should begin implementing compliance measures now rather than waiting for the regulation to take effect.

Traceability becomes a competitive advantage

Industry experts say the EUDR is accelerating investment in supply chain traceability and digital management systems across the rubber sector. Companies that can clearly demonstrate the legal and sustainable origin of their raw materials are expected to gain a competitive advantage in the European market.

One of the industry's biggest challenges is that approximately 85% of the world's natural rubber is produced by smallholder farmers. This makes collecting plantation data, monitoring supply chains, and verifying the origin of raw materials considerably more complex than in highly centralized industries.

To comply with the EUDR, many companies are introducing digital solutions such as GPS mapping of plantations, centralized raw material databases, and closer collaboration with farmers, collectors, processors, and exporters. These systems not only help satisfy EU regulatory requirements but also improve transparency and overall supply chain management.

According to industry specialists, the EUDR is more than an environmental regulation—it is reshaping the way the global rubber industry operates. As consumers and major international markets increasingly prioritize sustainability, supply chain traceability is expected to become a key competitive advantage for exporters in the years ahead.

Sources
1. Mongabay. Tiremakers Ready to Roll with EUDR, but Repeated Delays Frustrate Industry. May 19, 2026.
2. Yale Environment 360. How Mounting Demand for Rubber Is Driving Tropical Forest Loss.
3. Mongabay. Are Your Tires Deforestation-Free? Even Their Makers Can't Tell, Report Finds. March 27, 2025 (citing a report by the Zoological Society of London).