Vietnam Automotive Tire Industry Report 2022: Exports have Been Growing Rapidly with the US Being the Key Driver
DUBLIN, Sept. 13, 2022 /PRNewswire/ -- The "Research Report on Vietnam's Automotive Tire Industry 2022-2031" report has been added to ResearchAndMarkets.com's offering.
Vietnam's tire production and exports to continue to rise in the years 2022-2031.
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.
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.
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.
In addition, Vietnam has certain advantages in the cost of raw materials such as natural rubber, electricity prices, land costs and so on. According to the analysis, Vietnam tire manufacturing industry has the natural advantage of raw materials. Vietnam ranks 3rd in the world in rubber production, with an annual output of 1.2-2 million tons of natural rubber. Vietnam's energy and land prices are also at a low level in East and Southeast Asia.
In terms of policy support, eligible foreign-funded enterprises in Vietnam enjoy tax incentives: the corporate income tax rate is 10% for 15 years, and they are exempt from corporate income tax for 4 years from the date of generating taxable income, and the corporate income tax rate is reduced by 5% for the next 9 years. This translates into a net profit margin of 2.5%-3.5%.
On the export side, Vietnam also has a number of concessions. Since the outbreak of the U.S.-China trade war, Chinese tires exported to the United States are currently subject to a 25% surcharge, as well as a dumping duty rate of up to 87.99%. Vietnam's exports to the United States to enjoy 4% tariff treatment.
Between 2019-2021, the United States imports the largest number of tires is a country and region, Vietnam ranked in the forefront. The EU has signed the Vietnam EU Free Trade Agreement with Vietnam, which will take effect from August 1, 2020. The EU gives Vietnam the highest level of committed free trade partner treatment, and Vietnam and 27 EU countries enjoy mutual tariff preferences.
The low cost of labor as well as other factors of production and favorable export policies are keeping Vietnam's tire industry under the continuous attention of global investors.
Key Topics Covered:
1 Auto tire industry related concepts
1.1 Definition and classification of automobile tires
1.1.1 Definition
1.1.2 Classification
1.2 Industry chain analysis of Vietnam automobile tire manufacturing industry
1.3 Automobile tire manufacturing process
2 Development Environment of Vietnam Automotive Tire Industry 2015-2021
2.1 Economic Environment
2.1.1 Global Economic Environment
2.1.2 Vietnam economic environment
2.1 Policy Environment
2.2.1 Policies related to Vietnam's automotive industry
2.2.2 Vietnam tire manufacturing industry related policies
2.2 Overview of Vietnam's automotive industry development
2.2.1 Auto production and sales situation
2.2.2 Car ownership
2.3 Global Automotive Industry Development Overview
2.3.1 Auto production and sales situation
2.3.2 Car ownership
3 Global Automotive Tire Industry Development 2015-2021
3.1 Industry Development Overview
3.2 Market Overview
4 Vietnam Automotive Tire Industry Development 2015-2021
4.1 History of Vietnam's automotive tire industry
4.2 Industry chain analysis of Vietnam's auto tire industry
4.2.1 Rubber
4.2.2 Carbon black
4.2.3 Steel cord
4.3 Vietnam auto tire supply situation
4.3.1 Vietnam auto tire production capacity analysis
4.3.2 Vietnam auto tire production
4.4 Vietnam Market Demand for Automotive Tires 2015-2021
4.4.1 Overall requirements
4.4.2 OEM (complete vehicle manufacturing) demand for tires
4.4.3 Aftermarket demand for tires
4.5 Vietnam auto tires import and export status
4.5.1 Vietnam's auto tire imports
4.5.2 Vietnam's auto tire exports
4.6 Vietnam's auto tire manufacturing enterprises in the overseas layout
5 Competitive Analysis of Vietnam Automotive Tire Industry 2015-2021
5.1 Barriers to entry in Vietnam's auto tire industry
5.1.1 Technical barriers
5.1.2 Capital Barrier
5.1.3 Brand barriers
5.1.4 Sales channel barriers
5.2 Competition structure of Vietnam's auto tire industry
5.2.1 Bargaining power of upstream suppliers
5.2.2 Bargaining power of downstream users
5.2.3 Industry Competition
5.2.4 Potential Entrants in the Automotive Tire Industry
5.2.5 Alternatives to car tires
6 Analysis of Major Automotive Tire Manufacturing Companies in Vietnam 2017-2021
6.1 Bridgestone
6.1.1 Company Profile
6.1.2 Tire Business Operation
6.2 Michelin
6.3 Yokohama
6.4 Kumho Asiana Group
6.5 Massive New
6.6 Kenda
6.7 Race Wheel
6.8 Solid Platinum
6.9 Guizhou Tire Co.
6.10 The Southern Rubber Industry Joint Stock Company
6.11 Da Nang Rubber JSC
7 Vietnam Automotive Tire Industry Outlook 2022-2031
7.1 Factors influencing the development of Vietnam's automotive tire industry
7.1.1 Drivers and Market Opportunities in Vietnam Automotive Tire Industry
7.1.2 Threats and challenges to Vietnam's tire industry
7.1.3 Industry Development Prospects and Market Opportunities
7.2 Vietnam Tire Industry Competitive Landscape Forecast
7.3 Vietnam Automotive Tire Supply Forecast 2022-2031
7.3.1 Vietnam Automotive Tire Capacity Forecast 2022-2031
7.3.2 Vietnam Vehicle Tire Production Forecast 2022-2031
7.4 Vietnam Automotive Tire Market Demand Forecast 2022-2031
7.4.1 Vietnam overall market demand forecast for automotive tires from 2022-2031
7.4.2 Vietnam Automotive Tire Market Segment Demand Forecast 2022-2031
For more information about this report visit https://www.researchandmarkets.com/r/echbrc
Media Contact:
Research and Markets
Laura Wood, Senior Manager
[email protected]
For E.S.T Office Hours Call +1-917-300-0470
For U.S./CAN Toll Free Call +1-800-526-8630
For GMT Office Hours Call +353-1-416-8900
U.S. Fax: 646-607-1904
Fax (outside U.S.): +353-1-481-1716
Logo: https://mma.prnewswire.com/media/539438/Research_and_Markets_Logo.jpg
SOURCE Research and Markets
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article