Industries

Rubbers

In recent years, Vietnam's rubber industry has witnessed remarkable growth, solidifying its position as one of the world's leading rubber producers and exporters. This growth is largely attributed to the country's favorable climatic conditions and extensive rubber plantations, predominantly located in the southern and central highland regions.

Rubbers

Industrial rubber has a major application in the automotive industry.

Vietnam has exported tires to more than 140 countries in which US market is the main destination for tire export ( 80-90% ) from Vietnam and also exported to an economy with a developed automotive industry such as Germany or Italia.

The tires & tubes Vietnam market is concentrated, divided into 2 main groups:

+ group of Vinachem (CSM, DRC, SRC)
+ Others: group of other FDI and JV companies.

rubber

The tire manufacturing industry in Vietnam is evaluated as one of the industries with strong growth potential.

In recent years, Vietnam’s tire manufacturing industry has developed and matured, with production expected to exceed 30 million units in 2023, growing at a compound annual rate of more than 10% over the last five years.

The market forecast to grow CAGR 5,6%.

More than 90% of the tire production is exported, predominantly to the United States, which remains the major market driver.

FUTURE OUTLOOK

The automotive industry is growing at a healthy rate and this trend is forecasted to continue. This includes products such as tires and non-tire products (tube, suspension rubber parts, belts, fan belts, mounting, hoses, pipes gasket, roll coverings, seal….etc. )

These products require replacement as part of vehicle maintenance; therefore, ever-increasing vehicle demand and maintenance will drive industrial rubber market growth.

The Ministry of Industry and Trade’s prediction reveals that automobile consumption will sharply increase in the coming years, especially after many FTAs take effect