Vietnam Tire Market, By Design (Radial, Bias), By Vehicle Type (Passenger Cars, Light Commercial Vehicles, Medium, and Heavy Commercial Vehicles, Two Wheelers, Three Wheelers, Off-The-Road (OTR)), By End-User (OEM, Replacements), By Distribution Channel (Online Distributors, Offline Distributors) Trend Analysis, Competitive Market Share & Forecast, 2017-2027

  • Published Date: November 2021
  • Report ID: BWC21189
  • Available Format: PDF
  • Page: 113

Report Overview

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 Market- Industry Trends & Forecast Report 2027

The Vietnam tire market was worth USD 2.8 billion in 2020 and is further projected to reach USD 4.8 billion by the year 2027, growing at a CAGR of 8% in the forecast period (2021-2027). 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 favor the market growth in the forecast period.

Vietnam Tire Market

 

Source: BlueWeave Consulting

Vietnam Tire Market- Overview

A tire is a rubberized component of a vehicle that protects the rim of the wheel externally. The tire's main purpose is to protect the wheel rim and provide tractive force between the road surface and the vehicle. As it is made of rubber, it also provides a flexible cushion that reduces vibrations and absorbs shock from vehicles. Rubber tires are made up of tread, jointless cap piles, beads, and other materials such as synthetic rubber, carbon black, and fabric. Growing automobile sales across Vietnam is driving the country’s tire market. According to wholesale data released by the Vietnam Automotive Manufacturers Association (VAMA), the new vehicle market grew by 59% in March 2021 from 18,270 units the previous year.

Vietnam Tire Market Forecast and Trends

Growth Drivers

Growing Automobile Manufacturing in Vietnam

Vietnam is emerging as one of the major manufacturing sectors for automobiles due to the 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.

Increasing Penetration of Smart Tires

In keeping with market trends and consumption patterns, tires are also becoming smarter as electric and smart cars become more popular. The tire manufacturers are equipping tires with sensors that send alerts for predictive maintenance, preventing accidents from occurring in case of wear and tear. These sensors are also capable of tracking information about road temperature, tire pressure, and vehicle acceleration. Therefore, the Vietnam tire market is projected to gain traction with the increasing penetration of smart tires.

Restraints

Tough Competition with Global Tire Manufacturers

The Vietnamese tire manufacturers are facing stiff competition from global players, which may hinder their growth. Although they lead the market by offering their products at competitive prices, the global tire brands offer high quality tires that also meet safety standards and has a longer life. As a result, consumers are attracted to global players because of the greater assurances they provide regarding safety and longer tire life, which hinders demand for tires in the local market, thereby hindering market growth.

Impact of COVID-19 on Vietnam Tire Market

Though Vietnam is among those countries that was able to contain the COVID-19 outbreak efficiently, despite all the measures, the country witnessed a surge in the COVID-19 cases. Consequently, the Vietnam tire market was tremendously hit by the sudden outbreak of the COVID-19 pandemic. The lockdown imposed by the government to prevent the further spread of the virus only allowed essential businesses, government offices, and hospitals to function. This led to restrictions on the manufacturing activities of automobiles as well as tires. Moreover, due to social distancing norms, the supply and demand of tires were negatively impacted due to a lack of workforce.

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 2020. 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 favors its market growth.

Vietnam Tire Market - By Vehicle Type

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 2020 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 Distribution Channel

Based on distribution channels, the Vietnam tire market is segmented into online distributors and offline distributors. The offline distributors segment account for the largest market share owing to the presence of trusted suppliers and shops that sell original products. However, the online channels are anticipated to witness the highest CAGR during the forecast period. Online stores sell the same products but at a lower cost which proves to be economical for end-users. Furthermore, direct shipping also favors the growth of the segment due to its convenience.

Competitive Landscape

The leading players in the Vietnam tire market are Danang Rubber, Bridgestone Tire Mfg., Camso Vietnam Co., Ltd., The Southern Rubber Industries Joint., Kenda Rubber Co., Ltd., Topocean Consolidation Service Co., De Well Group LLC Vietnam., Mentfield Qv Logistics, Yokohama Tyre Vietnam Inc., Công Ty TNHH Cao Su Thời Ích, and other prominent players.

The market is untapped, and therefore, holds great potential for new entrants. Some established players cover substantial shares in the Vietnam tire market. The companies consistently focus on launching innovative and wide range of products for various vehicle types. They also embed advanced technologies, such as IoT, to gain a competitive edge. Furthermore, the adoption of competitive strategies, such as partnerships, mergers, acquisitions, joint ventures, etc., is also prominent in this market.

Recent Development

  • In April 2021, Kumho Tire, a Korean tire manufacturer, announced plans to invest USD 305 million to double its capacity in Vietnam by 2023.

Scope of the Report

Attributes Details
Years Considered Historical data – 2017-2020
Base Year – 2020
Forecast – 2021 – 2027
Facts Covered Revenue in USD Billion
Market Coverage Vietnam
Product Service/Segmentation By Design, By Vehicle Type, By End-User, By Distribution Channel
Key Players Danang Rubber, Bridgestone Tire Mfg., Camso Vietnam Co., Ltd., The Southern Rubber Industries Joint., Kenda Rubber Co., Ltd., Topocean Consolidation Service Co., De Well Group LLC Vietnam., Mentfield Qv Logistics, Yokohama Tyre Vietnam Inc., Công Ty TNHH Cao Su Thời Ích, and other prominent players

 

By Design

  • Radial
  • Bias

By Vehicle Type

  • Passenger Cars
  • Light Commercial Vehicles
  • Medium and Heavy Commercial Vehicles
  • Two Wheelers
  • Three Wheelers
  • Off-The-Road (OTR)

By End-User

  • OEM
  • Replacements

By Distribution Channel

  • Online Distributors
  • Offline Distributors
  1. Research Framework
    1. Research Objective
    2. Product Overview
    3. Key Market Segments
  2. Research Methodology
    1. Qualitative Research
    2. Methodology
    3. Regional Split of Primary & Secondary Research
    4. Secondary Research
    5. Primary Research
      1. Breakdown of Primary Research Respondents, By Region
      2. Breakdown of Primary Research Respondents, By Industry Participants
    6. Market Size Estimation
    7. Assumptions for the Study
    8. Market Breakdown & Data Triangulation
  3. Executive Summary
  4. Industry Insight and Growth Strategy
    1. Value Chain Analysis
    2. DROC Analysis
      1. Market Drivers
        1. Growing Automobile Manufacturing in Vietnam
        2. Increasing Penetration of Smart Tires
      2. Market Restraints
        1. Tough Competition with Global Tire Manufacturers
      3. Market Challenges
        1. Negative Impact of the COVID-19 Pandemic
      4. Market Opportunity
        1. Growing Popularity of Cab Services
        2. Increasing Disposable Income and Growing Demand for Vehicles
    3. Recent Developments
    4. Porter’s Five Forces Analysis
      1. Bargaining Power of Buyers
      2. Bargaining Power of Suppliers
      3. Intensity of Rivalry
      4. Threat of New Entrants
      5. Threat of Substitutes
  5. Vietnam Tire Market Overview
    1. Market Size & Forecast by Value, 2017-2027
    2. Market Size and Forecast, By Segment
      1. By Design
        1. Radial
        2. Bias
      2. By Vehicle Type
        1. Passenger Cars
        2. Light Commercial Vehicles
        3. Medium and Heavy Commercial Vehicles
        4. Two Wheelers
        5. Three Wheelers
        6. Off-The-Road (OTR)
      3. By End-User
        1. OEM
        2. Replacements
      4. By Distribution Channel
        1. Online Distributors
        2. Offline Distributors
  6. Competitive Landscape
    1. List of Key Players and Their Offerings
    2. Market Share Analysis (2020)
    3. Competitive Benchmarking by Operating Parameters
  7. Impact of COVID-19 on Vietnam Tire Market
  8. Company Profiles (Company Overview, Financial Matrix, Key Product landscape, Key Personnel, Key Competitors, Contact Address, and Strategic Outlook) *
    1. Danang Rubber
    2. Bridgestone Tire Mfg.
    3. Camso Vietnam Co., Ltd.
    4. The Southern Rubber Industries Joint.
    5. Kenda Rubber Co., Ltd.
    6. Topocean Consolidation Service Co.
    7. De Well Group LLC Vietnam.
    8. Mentfield Qv Logistics
    9. Yokohama Tyre Vietnam Inc
    10. Công Ty TNHH Cao Su Thời Ích
    11. Other Prominent Players
  9. Key Strategic Recommendations

 

List of Figures

 

Figure 1: Vietnam Tire Market Segmentation

 

Figure 2: Vietnam Tire Market Value Chain Analysis,

 

Figure 3: Company Market Share Analysis, 2020

 

Figure 4: Vietnam Tire Market Size, By Value (USD Billion), 2017-2027

 

Figure 5: Vietnam Tire Market Share (%), By Design, By Value, 2017-2027

 

Figure 6: Vietnam Tire Market Share (%), By Vehicle Type, By Value, 2017-2027

 

Figure 7: Vietnam Tire Market Share (%), By End-User, By Value, 2017-2027

 

Figure 8: Vietnam Tire Market Share (%), By Distribution Channel, By Value, 2017-2027

 

List of Tables

 

Table 1: Vietnam Tire Market Size, By Design, By Value, (USD Billion), 2017-2027

Table 2: Vietnam Tire Market Size, By Vehicle Type, By Value, (USD Billion), 2017-2027

Table 3: Vietnam Tire Market Size, By End-User, By Value, (USD Billion), 2017-2027

Table 4: Vietnam Tire Market Size, By Distribution Channel, By Value (USD Billion), 2017-2027

Table 5: Danang Rubber Financial Analysis

Table 6: Danang Rubber Business Overview

Table 7: Bridgestone Tire Mfg. Financial Analysis

Table 8: Bridgestone Tire Mfg. Business Overview

Table 9: Camso Vietnam Co., Ltd. Financial Analysis

Table 10: Camso Vietnam Co., Ltd. Business Overview

Table 11: The Southern Rubber Industries Joint. Financial Analysis

Table 12: The Southern Rubber Industries Joint. Business Overview

Table 13: Kenda Rubber Co., Ltd. Financial Analysis

Table 14: Kenda Rubber Co., Ltd. Business Overview

Table 15: Topocean Consolidation Service Co. Financial Analysis

Table 16: Topocean Consolidation Service Co. Business Overview

Table 17: De Well Group LLC Vietnam. Financial Analysis

Table 18: De Well Group LLC Vietnam. Business Overview

Table 19: Mentfield Qv Logistics Financial Analysis

Table 20: Mentfield Qv Logistics Business Overview

Table 21: Yokohama Tyre Vietnam Inc Financial Analysis

Table 22: Yokohama Tyre Vietnam Inc Business Overview

Table 23: Công Ty TNHH Cao Su Thời Ích Financial Analysis

Table 24: Công Ty TNHH Cao Su Thời Ích Business Overview

 

Market Segmentation

By Design

  • Radial
  • Bias

By Vehicle Type

  • Passenger Cars
  • Light Commercial Vehicles
  • Medium and Heavy Commercial Vehicles
  • Two Wheelers
  • Three Wheelers
  • Off-The-Road (OTR)

By End-User

  • OEM
  • Replacements

By Distribution Channel

  • Online Distributors
  • Offline Distributors
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Frequently Asked Questions (FAQs):

Ans: Vietnam tire market reached USD 2.8 billion in 2020.
Ans: Increasing automobile manufacturing in Vietnam and the increasing penetration of smart tires are major factors driving the Vietnam tire market's growth.
Ans: The key players in the Vietnam tire market are: Danang Rubber, Bridgestone Tire Mfg., Camso Vietnam Co., Ltd., The Southern Rubber Industries Joint., Kenda Rubber Co., Ltd., Topocean Consolidation Service Co., De Well Group LLC Vietnam., Mentfield Qv Logistics, Yokohama Tyre Vietnam Inc., Công Ty TNHH Cao Su Thời Ích, and other prominent players.
Ans: The OEM segment accounted for the largest share in the Vietnam tire market.
Ans: Tough competition with global tire manufacturers is restricting the growth of the Vietnam tire market.