Vietnam Automotive Tire Industry Report 2022 Featuring Bridgestone

Vietnam has about 830 large and small tire companies, including bicycle tires, motorcycle tires, car tires and truck tires. Bridgestone, Michelin, Yokohama, Kumho, CHENG SHIN, KENDA, Sailun, Guizhou Tire, Jinyu, Goodyear and other global famous tire manufacturers have already established factories in Vietnam, some of them have set up multiple factories.To get more news about tire manufacturers, you can visit gofortunetire.com official website.

According to this research, some Chinese tire manufacturers, such as Sailun, have plans to expand their tire production capacity in Vietnam. Chinese tire companies have built a semi-steel tire production capacity of 11 million tons/year in Vietnam, and a full-steel tire production capacity of 7.2 million tons/year.
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The demand for the use of automotive tires can be divided into OEM demand from the manufacture of the entire vehicle and replacement demand from the automotive aftermarket. In developed countries, due to the high saturation of the new car market, it is difficult to increase the sales volume, so the tire market growth driver mainly comes from the aftermarket demand.

According to the analysis, global vehicle production drops below 60 million units in 2021, equivalent to pre-2010 levels, due to a shortage of automotive chips caused by COVID -19. Global car ownership is about 1.5 billion units by the end of 2021. The automotive aftermarket has become a major part of the global tire market demand. Despite the global automotive market downturn, the global tire market continues to grow.

In recent years, Vietnam's auto industry has been developing rapidly. 2021 Vietnam's auto imports will be about 136,000 units, up 24% year on year. 2021 Vietnam's local production will be about 168,000 units, down about 10% year on year. 2021 Vietnam's auto sales will be about 304,100 units, up about 3% year on year. 2020 Vietnam's auto ownership will be 23 units per 1,000 people, far below the global average. With the development of Vietnam's economy, the automotive and auto parts market has great potential for development.

Vietnam exports tires to more than 100 countries, with the highest volume of automotive tires accounting for more than 60% of exports. For car tyres, 80-90% are exported. Vietnam's tire exports have been growing rapidly, with growth in exports to the US being the key driver. In 2021, Vietnam exported 14.06 million passenger car tires to the US, up 6.8% year on year. 2021 Vietnam has more than 200 tire exporters. Among the top ten tire exporters in Vietnam, there are only two Vietnamese companies, namely Southern Rubber JSC (Casumina) and Da Nang Rubber JSC (DRC), while the rest are foreign companies.

 

According to this analysis, Vietnam has an abundant labor force and low labor costs. Areas with the highest minimum wage levels in Vietnam include Hanoi and Ho Chi Minh City, with a minimum wage of VND4.68 million (about $204) per month in 2021. In the less developed areas of Vietnam, the minimum monthly wage is only VND3.25 million (about $142). At the end of 2021, Vietnam's population reaches about 103 million people, with 45.7% of the working age population between 25-54 years old, Vietnam has an abundant labor force and consumer market.