VRG owns extensive rubber forests and plans to commercialize carbon credits in the future. (Photo: VRG)
The Vietnam Rubber Group (VRG) is optimistic about the carbon market. As outlined in its "2024 Green Growth and Sustainable Development Action Plan" announced on March 27, VRG will assess the feasibility of developing carbon credits from rubber forests.
Till the end of 2023, VRG's rubber forests spanned approximately 300,000 hectares across 34 provinces and cities in Vietnam, with additional locations in Laos and Cambodia. VRG’s statement said, leveraging its vast rubber forest, the company aims to find ways to develop carbon reserves in rubber forests through research and information gathering, with plans to commercialize carbon credits in the future.
VRG continues to implement sustainable forestry strategies and aims to increase certified forest area to 40%-45% under VFCS/PEFC-FM and similar certifications by the end of the year. Moreover, at least 75% of its rubber processing plants will be PEFC-CoC certified.
As part of the plan, VRG also aims to further reduce greenhouse gas emissions from its energy activities, targeting a reduction of at least 2% compared to 2023.
According to Vietnam Rubber Association (VRA), Vietnam is currently the world's third-largest producer and exporter of natural rubber, following Thailand and Indonesia. As of the end of 2022, Vietnam's total rubber area remains at 918,600 hectares, primarily located in the Southeastern region, followed by the Central Highlands.
"The Development Plan for Major Industrial Crops by 2030” dated at the end of January 2024 by The Ministry of Agriculture and Rural Development (MARD), estimates that the rubber forest area in Vietnam will remain between 800,000 and 850,000 hectares by 2030.
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