Report Overview

Vietnam Tire Market- Industry Trends & Forecast Report 2028

Vietnam Tire Market was worth USD 540.83 million in 2021 and is further projected to reach USD 898.45 million by the year 2028, exhibiting a CAGR of 7.7% during the forecast period. Several factors have contributed to the growth of the Vietnam tire market, including a flourishing automotive manufacturing sector in the country to make it self-sufficient. Additionally, foreign investment in the establishment of automotive factories, such as Toyota, Honda, Ford, Kia, and others, is also driving the market's growth. In addition, the high import taxes on automobiles are expected to favour the market growth in the forecast period. Vietnam tire market is gaining significant traction owing to the flourishing automotive manufacturing sector in the country along with increasing foreign investment for establishing automotive manufacturing plants.

Vietnam Tire Overview

Tires are ring-shaped, circular elements of a vehicle that are mounted on rims and inflated with air. The tire's primary function is to protect the wheel rim while also providing tractive force between the vehicle and the road surface. When tires move over rough surfaces, they produce a flexible cushion that lowers vibration and absorbs stress. Since its inception, natural rubber has been widely employed in tire manufacture. Modern tires, on the other hand, are made of synthetic rubber, carbon black, steel wires, and other materials.

Vietnam Tire Market Trends

Growth Drivers

Growing Automobile Manufacturing in Vietnam

Vietnam is a primary automobile manufacturing sector due to surging domestic sales. Due to high taxes and fees on imported cars, their demand in the market is limited. Therefore, global car manufacturers are establishing production facilities in this region to take advantage of the growing market. Vehicle manufacturers such as Thaco Group, Toyota, Mitsubishi Vietnam, Ford, Honda, etc., are setting up manufacturing operations in Vietnam. This is anticipated to boost the demand for tires in the forecast period.

Sales of automobiles in Vietnam are rising, leading to the region's growing automobile manufacturing activities. According to the Department of International Trade Promotion (DITP) of the Ministry of Commerce, the Vietnam Automobile Manufacturers Association (VAMA) sold 188,937 automobiles in the first nine months of 2021, a 5% year-over-year gain.

Increasing Penetration of Smart Tires

As electric and smart automobiles gain popularity, tires are also becoming smarter in line with market trends and consumption patterns. To avoid accidents in the event of wear and tear, tire manufacturers are fitting tires with sensors that give alarms for predictive maintenance. These sensors can also record tire pressure, road temperature, and vehicle acceleration data. Therefore, it is anticipated that the Vietnamese tire market will grow as smart tires become more widely used.

Steady advancement of technologies and commercialization of autonomous vehicles has led to the increasing demand for the various automotive components and connected vehicles in the region. In 2021, The Phenikaa Group, a local conglomerate, produced Vietnam's first autonomous car equipped with artificial intelligence (AI) capabilities like 3D maps, Lidar sensors, simultaneous localization, mapping technology, and software that uses both machine and deep learning.

Restraints

Volatile prices of raw materials

One of the major concerns regarding the market growth of the Vietnam tire market is the escalating volatility in raw materials prices. The raw material prices for tires and rubber items are becoming more volatile. The prices of raw materials used in tire production, including nylon, steel, rubber, and others, constantly fluctuate. The price of aluminium and steel varies based on the global supply and demand, fuel costs, and availability of bauxite and iron ore. According to OECD, steel prices rose sharply during the second half of 2020. In January 2021, flat steel and rebar prices stood 47% and 39% higher than one year earlier.

Impact of COVID-19 On the Vietnam Tire Market

The COVID-19 outbreak's unclear conditions had a negative impact on the tire industry. Several production facilities have been shut down as a result of various restrictions imposed by national and local governments, such as border closures and labor restrictions. Vietnam, one of the nations that successfully contained the COVID-19 outbreak, experienced an increase in COVID-19 cases despite all the precautions taken. Consequently, the unexpected COVID-19 pandemic breakout had a significant negative impact on the Vietnam tire market. Only crucial enterprises, government buildings, and hospitals were able to run normally under the lockdown the government imposed to stop the virus from spreading. This resulted in limitations on the production of tires and autos. In addition, because of social standards that discourage close relationships, the supply and demand for tires were badly impacted by a labor shortage.

Vietnam Tire Market - By Vehicle Types

Based on vehicle types, the Vietnam tire market is segmented into passenger cars, light commercial vehicles, medium & heavy commercial vehicles, two-wheelers, three-wheelers, and off-the-road (OTR). The passenger cards segment held the largest share in the market in 2021 due to the increasing demand for passenger vehicles for personal use. The growing disposable income of families is fueling the demand for passenger cars in the country. Furthermore, the commercial use of passenger cars due to the increasing popularity of ride-hailing services is anticipated to drive the market growth in the forecast period.

Vietnam Tire Market – By Design

Based on designs, the Vietnam tire market is segmented into radial and bias. The radial tire segment accounted for the largest share in the Vietnam tire market in 2021. The growth of radial tires is driven by their efficiency in providing comfort at higher speeds. Radial tires can dissipate heat better than bias tires which allows them to cover greater distances at higher speeds. It also offers a longer life with less maintenance due to its single steel body and absence of multiple nylon plies, which favours its market growth.

Competitive Landscape

There are over 830 large and small tyre companies in Vietnam, manufacturing tyres for cars, trucks, bicycles, and motorcycles. Some of the world's most well-known tyre manufacturers, including Bridgestone, Michelin, Yokohama, Kumho, CHENG SHIN, KENDA, Sailun, Guizhou Tire, Jinyu, Hankook Tires & technology, Goodyear, and others, have already established factories in Vietnam.

The leading players in the Vietnam tire market are Bridgestone Tire Mfg., Michelein, Kenda Rubber Co., Ltd., Yokohama Tyre, The Southern Rubber Industries Joint., Continental, Pirelli & C. S.p.A, Sao Vang Rubber JSC, Kumho Tire, Sumitomo Rubber, Toyo Tire Corp., Maxxis International/Cheng Shin Rubber, Goodyear, Goodtime Rubber Co., Ltd. and other prominent players.

Recent Developments

• In July 2022, the Quality Award from Toyota Motor Vietnam Co. LTD was given to Bridgestone Tire Sales Vietnam LLC and Bridgestone Tire Manufacturing Vietnam LLC (Bridgestone Vietnam) for the fifth consecutive year (Toyota Vietnam). The award honoured Bridgestone's commitment to providing high-quality goods and services that exceed the requirements of Toyota, the world's best-selling automaker.

• In June 2022, Danang Rubber Joint Stock Co. (DRC), a Vietnamese company, enhanced tire production and launched a sales and marketing program with the goal of reaching USD 5.5 billion in annual sales by 2025. The initiative, which was unveiled on June 23, has partnered the Vietnamese conglomerate Tin Thanh Consortium and PHI Group Inc., a business connected to a group of Luxembourg-based bank funds (TTG). Details on the anticipated investments or the increased capacity for tire manufacture were not included in the release. According to the plan, there would be savings of between 10% and 20% compared to purchasing tires thanks to smart tires with mounted chips for tracking and managing journeys.

Scope of Report

By Design

• Radial

• Bias

By Rim Size

• Up to 19”

• 20”-25”

• Above 25”

By Vehicle Type

• Passenger Cars

• Light Commercial Vehicles

• Medium and Heavy Commercial Vehicles

• Two-Wheeler

• Off-The-Road (OTR)

     By Demand Category

• OEM

• Aftermarket

By Sales Channel

• Online

• Offline

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Research Methodology
   1. Qualitative Research
      1. Primary & Secondary Research
   2. Quantitative Research
   3. Market Breakdown & Data Triangulation
      1. Secondary Research
      2. Primary Research
   4. Breakdown of Primary Research Respondents, By Region
   5. Assumption & Limitation
3. Executive Summary
4. Vietnam Tire Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Growing Automobile Manufacturing in Vietnam
         2. Increasing Penetration of Smart Tires
      2. Restraints
         1. Volatile prices of raw materials
      3. Opportunity
         1. The growing demand for tires from the mining industry
         2. Foreign companies ramp up investment in tire Rim Size in Vietnam
         3. Others
      4. Challenges
         1. Tough Competition with Global Tire Manufacturers
         2. Impact of COVID-19
   3. Technological Advancements /Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
5. Vietnam Tire Market Overview
   1. Market Size & Forecast by Value & Volume, 2018-2028
      1. By Value (USD Million)
      2. By Volume (Thousand Units)
   2. Market Share & Forecast
      1. By Design
         1. Radial
         2. Bias
      2. By Rim Size
         1. Up to 19”
         2. 20”-25”
         3. Above 25”
      3. By Vehicle Type
         1. Passenger Cars
         2. Light Commercial Vehicles
         3. Medium and Heavy Commercial Vehicles
         4. Two-Wheeler
         5. Off-The-Road (OTR)
      4. By Demand Category
         1. OEM
            1. By Vehicle Type
         2. Aftermarket
            1. By Vehicle Type
      5. By Sales Channel
         1. Online
         2. Offline
6. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. Vietnam Tire Company Market Share Analysis, 2021
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Development (Merger, Acquisition, Partnership)
   5.  Import/Export Analysis
7. Impact of Covid-19 on Vietnam Tire Market Industry
8. Company Profile (Company Overview, Financial Matrix, Competitive landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook)
   1. Danang Rubber
   2. Bridgestone Corporation
   3. The Southern Rubber Industries Joint (Casumina)
   4. Kenda Rubber Co., Ltd
   5. The Yokohama Rubber Company
   6. Michelin
   7. Kumho Tires
   8. Hankook Tires & Technology
   9. Sao Vang Rubber Joint Stock Company
   10. Dunlop Tyres
   11. Maxxis Tires
   12. Other Prominent Players
9. Key Strategic Recommendations

List of Figures

Fig 1: Vietnam Tire Market Segmentation

Fig 2: Vietnam Tire Market Size, By Value (USD Million)

Fig 3: Vietnam Tire Market Share (%), By Sales Channel, By Value (in %), 2021

Fig 4 : Vietnam Tire Market: Value Chain Analysis

Fig 5: Raw Materials Suppliers in Vietnam

Fig 6: Porters Five Forces Analysis

Fig 7: Vietnam Tire Market Size, By Value (USD Million), 2018-2028

Fig 8: Vietnam Tire Market Size, By Volume (Thousand Units), 2018-2028

Fig 9: Vietnam Tire Market Share (%), By Vehicle Type, By Value, 2018-2028

Fig 10: Vietnam Tire Market Share (%), By Vehicle Type, By Volume (Thousand Units), 2018-2028

Fig 11: Vietnam Tire Market Share (%), By Design, By Value, 2018-2028

Fig 12: Vietnam Tire Market Share (%), By Design, By Volume (Thousand Units), 2018-2028

Fig 13: Vietnam Tire Market Share (%), By Demand Category, By Value, 2018-2028

Fig 14: Vietnam Tire Market Share (%), By Demand Category, By Volume (Thousand Units), 2018-2028

Fig 15: Vietnam Tire Market Share (%), For OEM Category, By Vehicle Type, By Value, 2018-2028

Fig 16: Vietnam Tire Market Share (%), For OEM Category, By Vehicle Type, By Volume, 2018-2028

Fig 17: Vietnam Tire Market Share (%), For Aftermarket Category, By Vehicle Type, By Value, 2018-2028

Fig 18: Vietnam Tire Market Share (%), For Aftermarket Category, By Vehicle Type, By Volume, 2018-2028

Fig 19: Vietnam Tire Market Share (%), By Rim Size, By Value, 2018-2028

Fig 20: Vietnam Tire Market Share (%), By Rim Size, By Volume (Thousand Units), 2018-2028

Fig 21: Vietnam Tire Market Share (%), By Sales Channel, By Value, 2018-2028

Fig 22: Vietnam Tire Market Share (%), By Sales Channel, By Volume, 2018-2028

Fig 23: Vietnam Tire Market Share Analysis, 2021

List of Tables

Table 1: Vietnam Tire Market Size, By Vehicle Type, By Value (USD Million), 2018-2028

Table 2: Vietnam Tire Market Size, By Vehicle Type, By Volume (Thousand Units), 2018-2028

Table 3: Vietnam Tire Market Size, By Design, By Value (USD Million), 2018-2028

Table 4: Vietnam Tire Market Size, By Design, By Volume (Thousand Units), 2018-2028

Table 5: Vietnam Tire Market Size, By Demand Category, By Value (USD Million), 2018-2028

Table 6: Vietnam Tire Market Size, By Demand Category, By Volume (Thousand Units), 2018-2028

Table 7: Vietnam Tire Market Size For OEM Category, By Vehicle Type, By Value (USD Million), 2018-2028

Table 8: Vietnam Tire Market Size For OEM Category, By Vehicle Type, By Volume (Thousand Units), 2018-2028

Table 9: Vietnam Tire Market Size For Aftermarket Category, By Vehicle Type, By Value (USD Million), 2018-2028

Table 10: Vietnam Tire Market Size For Aftermarket Category, By Vehicle Type, By Volume (Thousand Units), 2018-2028

Table 11: Vietnam Tire Market Size, By Rim Size, By Value (USD Million), 2018-2028

Table 12: Vietnam Tire Market Size, By Rim Size, By Volume (Thousand Units) (USD Million), 2018-2028

Table 13: Vietnam Tire Market Size, By Sales Channel, By Value (USD Million), 2018-2028

Table 14: Vietnam Tire Market Size, By Sales Channel, By Volume (Thousand Units), 2018-2028

Table 15: List of Key Players and Their Offerings

Table 16:  Competitive Benchmarking, By Operating Parameters

Table 17: Merger and Acquisition (Past and Upcoming)

Table 18: List Of Importing Markets For A Product Exported By Viet Nam (HS CODE: 4011 New Pneumatic Tyres, Of Rubber), Ton, 2016-2020

Table 19: List Of Supplying Markets For A Product Imported By Viet Nam (HS CODE: 4011 New Pneumatic Tyres, Of Rubber), Ton, 2016-2020

Table 20: Danang Rubber Company Overview

Table 21: Bridgestone Corporation Company Overview

Table 22: Bridgestone Corporation Financial Analysis

Table 23: The Southern Rubber Industries Joint (Casumina) Company Overview

Table 24: Kenda Rubber Co., Ltd Company Overview

Table 25: The Yokohama Rubber Company Overview

Table 26: The Yokohama Rubber Company Financial Analysis (USD Million)

Table 30: Michelin Company Overview

Table 31: Michelin Financial Analysis

Table 32: Kumho Tires Company Overview

Table 33: Kumho Tires Financial Analysis

Table 34: Hankook Tires & Technology Company Overview

Table 35: Hankook Tires & Technology Financial Analysis

Table 36: Sao Vang Rubber Joint Stock Company Overview

Table 37: Dunlop Tyres Company Overview

Table 38: Maxxis Tires Company Overview

Table 39: Maxxis Tires Financial Analysis