08 Jul Vietnam Would Be The Tire Center After Covid-19
Vietnam would be the tire center of World after Covid-19
Vietnam’s importance in the tire world has been growing over the past decade.
VIETNAM GOVERNMENT MAKING MAIN INVESTMENTS IN TIRE INDUSTRY
VIETNAM — a country found on the same Asian peninsula as Thailand and Cambodia — is the source of 40 percent of the world’s new raw rubber supply.
But its influence is set to rapidly grow as the Vietnam government makes high-level investments and more tire companies move production there.
Vietnam is produce main category of truck bus radial tire (TBR tyre ).
The Vietnam government has plans to increase tire production from 800,000 tons per year to more than 2 million tons in the next couple of years.
Major tire factories are currently under construction and it has plans to build several tire testing tracks.
In short, the Vietnam government is doing everything it can to make the country more attractive for business expansion and foreign investment.
INVESTMENT IN VIETNAM’S TIRE BUSINESS
In a move meant to boost the country’s truck tire industry, Vietnam’s government-operated Board of Investment recently announced it will be investing US$50 million to build a major automotive tire testing facility.
The facility will be built near Danang Vietnam.
The Board of Investment also announced last year that DRC TIRE – Danang Rubber jsc Vietnam will be investing more than US$40 million to upgrade their factory and increase double volume next year.
WHAT’S THE FUTURE FOR VIETNAM IN THE TIRE INDUSTRY?
Truck sales of Vietnam Tire Business across the globe are up over the past few years and sales of cars by Asian carmakers are also up sharply.
Projections are that sales of Asian-made truck will only increase — and Vietnam is in a prime location to leverage their proximity to that industry to their advantage.
But what about the U.S.? What affect will this have on our tire industry?
While new President Of The United State of America has promised to “even the playing field” when it comes to foreign-produced goods sold by companies based in the U.S, in circumstances where it is felt those imports are hurting U.S. industry.
While the President has China firmly in his sights, this does not yet appear to include Vietnam.
Perhaps that’s about to change? If it does, the fact Vietnam is the world’s largest rubber producer could well make those trade negotiations an interesting time for the tire industry.