Vietnam’s tyre market keeps rolling along
VOV.VN - Vietnam, with a strong presences of foreign manufacturers operating within its borders, has emerged as a major market for automotive tyres over the last five years, says the Vietnam Chemicals Agency.
An Agency reports shows the tyre segment of the economy obtained average annual growth of 9% during the five-year period 2009-2013, largely driven by increasing per capita incomes and a rising middle class.
The report says the motorization rate of the country, which boasts a population of around 91 million, has been growing at a brisk pace and the country’s vehicle fleet size has been expanding tremendously over the last few years.
In light of the growing demand for vehicles, many domestic and global players in the tire industry are strengthening their footprint by establishing manufacturing plants within the country’s borders.
Bridgeston based out of Japan and Kumho and Sailun out of the Republic of Korea are just three of the leading brands that have recently expanded their operations in the country.
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All these factors have been fueling OEM, original equipment manufacturing, and replacement demand for automotive tyres in Vietnam.
According to – Vietnam Tyre Market Forecast & Opportunities, 2020 – growing automobile sales, rising vehicle fleet and increasing foreign investments in the automotive sector are the major factors driving the Vietnam tyre market.
The two-wheeler tyre segment dominates the market, followed by the passenger car and commercial vehicle & OTR tyre segments. However, the passenger car tyre segment is expected to exhibit the fastest growth rate over the next five years, followed by the commercial vehicle & OTR tyre segment.
The world demand for tires is projected to rise 4.1% per year to 3.0 billion units in 2019. In value terms, global sales of tires are forecast to advance 7.0% per annum to US$258 billion in 2019.
More than half of all tires are projected to be sold in the Asia/Pacific region, with the region forecast to post the fastest regional growth in demand through 2019. China, will remain one of the fastest growing national markets for tires.
Several other countries in the Asia/Pacific region are also projected to achieve rapid gains in tire demand – particularly India, Indonesia, and Thailand.
Considering all the factors, leading experts say the tyre segment in Vietnam will keep rolling along and sales, led by foreign tyre manufacturers operating within the country’s borders, should most likely touch a record high US$2.7 billion by 2020.
