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Foreign Direct Investment (FDI) enterprises and their position in the car tire manufacturing industry in Vietnam

The automobile industry is undergoing a strong development phase not only in Vietnam but also globally, thus providing many opportunities for the tire manufacturing industry to grow. Currently, Vietnam has made remarkable strides in tire manufacturing technology over the past few decades. In the past, tires were made using traditional methods such as hand casting and vulcanization. But now, this industry has applied advanced technologies such as Computer-Aided Design (CAD), Computer-Aided Manufacturing (CAM), and 3D printing technology.

Based on data from the General Department of Vietnam Customs, in 2023, Vietnam exported 2,14 million tons of rubber with a total value of 2,89 billion USD. Compared to 2022, both the volume and value of exports decreased, respectively by 0.1% and 12.8%. The export price of Vietnamese rubber in 2023 dropped sharply, averaging only 1,350 USD/ton, a decrease of 12.7% compared to 2022. However, rubber prices began to rise again in the last months of the year, contributing to supporting the production and business activities of enterprises in the industry. Notably, China continues to be Vietnam’s largest export market for many years.

The Ministry of Industry and Trade predicts that car consumption in Vietnam will increase strongly in the coming time, especially when the Bilateral Free Trade Agreements (FTA) start to take effect. It is expected that by 2025, the demand for cars in Vietnam will reach from 800,000 to 900,000 vehicles and increase to from 1,5 to 1,8 million units by 2030. The increase in the rate of domestic car production and assembly will open up growth opportunities for the domestic tire market. Therefore, it is expected that the sales of car tires, especially Radial tires (steel cord), will grow significantly this year and in the following years.

According to the Vietnam Rubber Association, tires are the main rubber export product of Vietnam for many years. In 2022, the export value of tires is estimated to reach over 2,2 billion USD, an increase of 22.7% compared to 2021 and accounting for 52.5% of the total export value of rubber products. The main export market is the United States, with the main import demand being car tires and truck tires.

Although Vietnam has a large export value of tires, it still needs to import many types of tires that the country cannot produce or has not yet met the demand. The main import market is Thailand, where there are tire factories of major brands such as Bridgestone, Michelin, Goodyear… Importing from Thailand helps reduce transportation costs and product prices.

Currently, tires from Vietnam have been exported to 140 countries. The United States is the largest market with an estimated export value of 650 million USD, an increase of 37% compared to 2021. Other export markets include Brazil, Germany, and several other countries.

According to statistical data, the production index of the rubber tire and tube manufacturing industry decreased by 4.11% in the first month of 2024 with the inventory index increasing to 185.03%.

According to a market report, the tire manufacturing industry in Vietnam is evaluated as one of the industries with strong growth potential. It is expected that this industry will grow at a CAGR of 8.4% in the period 2020-2025. Meanwhile, according to the forecast of Agribank Securities Company (Agriseco), the demand for tire consumption will grow steadily, with the expected compound growth rate being 4.11%/year in the period 2024-2029.

Competition in the tire manufacturing industry in Vietnam is becoming increasingly fierce due to the participation of foreign enterprises such as Bridgestone Vietnam (of Japan) and Kumho Tire (of South Korea). In this situation, leading tire manufacturing enterprises in Vietnam such as Da Nang Rubber Company and Southern Rubber Industry Company are facing fierce competition from foreign enterprises.


Kumho Vietnam, a member of the Kumho Asiana Group - the seventh largest conglomerate in South Korea with nearly 40 subsidiaries, has been operating in Vietnam since 1993. Currently, this group has up to 7 member companies operating in Vietnam. The Kumho tire factory in Binh Duong was inaugurated in March 2008 with a total investment capital of 200 million USD. The factory currently has a production capacity of 3,15 million tires per year.

Kumho tires are widely distributed in 160 countries around the world. 90% of Kumho Vietnam’s output is exported to various markets such as the United States, Australia, South and Central America, Southeast Asia… Notably, Kumho Vietnam accounts for up to 40% of the total volume of car tire exports from Vietnam. Kumho Vietnam continuously improves its techniques to produce high-quality tire products, suitable for the harsh tropical climate conditions in Vietnam and meeting international standards.

The net revenue and after-tax profit of Kumho Vietnam have recorded many fluctuations over the years. Specifically, the net revenue of Kumho Vietnam increased slightly in 2021 and continued to grow significantly in 2022 with an increase of more than 60% compared to the previous year, surpassing the threshold of 5 trillion VND. In terms of after-tax profit, Kumho Vietnam witnessed a decrease in 2021 and then regained recovery momentum when net profit reached more than 200 billion VND in 2022, an increase of nearly 70% compared to the same period last year.


Da Nang Rubber Joint Stock Company, also known internationally as DRC, has had over 47 years of continuous development since it started as a tire patching factory for the US military. DRC is currently the largest manufacturer in Vietnam for truck and passenger car tires, as well as the leading manufacturer in Southeast Asia for special and dedicated car tires. DRC has expanded its global market and is currently present in more than 40 countries and territories, including demanding markets such as the United States, Europe, and Brazil.

In Vietnam, DRC has dominated the market with more than 2,000 first and second level dealers in 63 provinces and cities. DRC’s distributors have a lot of experience and long-term cooperation with the company for common development goals. Many large customers have trusted and used DRC’s products, including Truong Hai Auto Company, Hyundai Auto Company, Xuan Kien Auto Company, and many other transport and passenger car companies nationwide.

In the period from 2020 to 2022, DRC’s business situation showed positive signs as the company’s net revenue and after-tax profit both maintained stable growth over the years. In 2022, DRC’s net revenue reached nearly 5 trillion VND, an increase of nearly 35% compared to 2020. Along with that, DRC’s net profit also ended 2022 with a slight increase of nearly 10% compared to the previous year, reaching more than 300 billion VND.

Net revenue of car tire manufacturing enterprises
Net revenue of car tire manufacturing enterprises


Bridgestone, a world-leading tire manufacturer headquartered in Japan, was established by Mr. Shojiro Ishibashi on March 1, 1931. In Vietnam, Bridgestone provides a range of high-quality tire products, including passenger car tire lines such as Turanza, Alenza, Dueler, Ecopia, and Potenza; truck and bus tires such as M840, R150, R118; as well as some lines of tires for industrial vehicles, sports motorcycles, and special tires used in ports, mines.

Bridgestone tires manufactured in Vietnam are exported to various markets around the world, including Europe, North America, Asia, and the domestic market. With advanced technology and continuous improvement, Bridgestone is committed to providing diversity in tire products and services, with superior quality, to meet the needs of all distributors and consumers.

Bridgestone Vietnam concluded 2022 with improved business performance in terms of both net revenue and net profit. Specifically, the company's net revenue in 2022 surpassed the threshold of 3 trillion VND, while in previous years it was just over 2 trillion VND. Moreover, Bridgestone Vietnam's after-tax profit also grew to nearly 200 billion VND in 2022, an increase of nearly 50% compared to the same period in 2021.


Michelin, a globally renowned tire brand, was established in France in 1889. With over a century of development and innovation, Michelin has affirmed its position in the international tire market. Michelin’s products, from the first tire models to premium lines such as Michelin Pilot Sport 4S and Michelin Primacy 4, always focus on quality and safety for users.

Michelin tires stand out for their ability to meet multiple requirements at once, including safety, durability, fuel efficiency, and overall tire performance. Michelin not only owns its main brand but also owns tire companies such as Kléber, Uniroyal-Goodrich, and other brands such as SASCAR, Bookatable, Camso. Michelin is currently operating in 175 countries with a staff of up to 132,200 people and 67 tire manufacturing plants. In 2022, these factories produced a total of about 167 million tires.

2022 is probably a successful year for Michelin Vietnam when not only the company’s net revenue grew but also its after-tax profit recorded a remarkable growth. In 2022, Michelin Vietnam’s net revenue reached over 2,000 billion VND, an increase of nearly 40% compared to 2021. Notably, Michelin Vietnam’s net profit showed impressive growth when in 2020 and 2021, the company’s net profit was kept at less than 50 billion VND, but by 2022, this figure had accelerated to nearly 300 billion VND, an increase of more than 500% compared to the previous year.


Yokohama, a car tire manufacturing company, was established in 1917 in Japan. Before shifting to the field of automobile and bicycle tire production, this company was initially known as Yokohama Cable Manufacturing and specialized in the production of rubber products such as drive belts and other technical products. 

From 1997, Yokohama Vietnam was established and became a part of the YOKOHAMA RUBBER group. Yokohama car tires are manufactured in many factories around the world, not only in Japan but also in many other countries such as China, Thailand, Indonesia, the United States, and Europe. Yokohama always chooses the most suitable manufacturing factory to meet the market demand. 

In terms of business situation, the net revenue of Yokohama Vietnam continues to maintain its growth momentum when in 2022, the net revenue recorded was over 1 billion VND, an increase of nearly 25% compared to the previous year. However, the after-tax profit of Yokohama Vietnam recorded negative signs when it fell to just over 90 billion VND in 2022, a decrease of nearly 20% compared to the same period in 2021.


The Sao Vang Rubber Joint Stock Company, established on May 23, 1960, in Hanoi, is one of the top three companies in the field of tire production in Vietnam. SRC dominates the market in the North, while CSM is famous in the South and DRC focuses on the Central region. SRC produces and supplies various types of commercial truck tires, including light trucks, medium trucks, and heavy trucks. SRC Sao Vang’s products may include radial tires, track tires, and regular tires, with various sizes and models. 

SRC has a wide distribution network both domestically and internationally, with dealers and tire shops all over the country. This is a reputable company with reliable product quality in the tire industry. 

The business situation of SRC is showing a not very optimistic scenario when the company’s net revenue and after-tax profit have continuously decreased over the years and have not shown signs of recovery. Specifically, SRC’s net revenue has decreased to just over 900 billion VND, this figure has decreased by more than 30% compared to 2020. In addition, the company’s net profit in 2022 also decreased to nearly 30 billion VND, down more than 60% compared to the same period in 2020.

Profit after taxes of car tire manufacturing enterprises
Profit after taxes of car tire manufacturing enterprises


Goodyear, a tire brand originating from the United States and established in 1898, produces a range of tire types, with prices suitable for consumers, and competes directly with other major brands such as Michelin, Pirelli, and Bridgestone. The company has about 74,000 employees and operates 57 manufacturing facilities in 23 countries worldwide, including Vietnam. Goodyear tires are highly rated for their durability and adaptability to road conditions and weather in Vietnam.

Goodyear Vietnam’s net revenue has recorded steady growth over the years. Specifically, Goodyear Vietnam ended 2022 with a growth in net revenue reaching nearly 300 billion VND, an increase of nearly 250% compared to the same period in 2020. In terms of after-tax profit, the company also showed positivity when it recorded a net profit of more than 8 billion VND in 2022, an increase of over 90% compared to the same period in 2020.


Hankook Tire, a company based in Seoul, South Korea, was established in 1941 and quickly became one of the world’s leading tire manufacturers. The company continuously researches and develops to enhance the performance and safety of its products, introducing many advanced products such as noise-resistant tires and low-friction tires.

Hankook car tires are manufactured in factories worldwide, including South Korea, China, Indonesia, Hungary, and the United States. These factories are equipped with the most advanced equipment and technology to ensure that each product meets the highest safety and performance standards for users. This is a manifestation of Hankook Tire’s relentless commitment to quality and innovation.

Hankook Vietnam’s net revenue in 2022 reached over 100 billion VND, an increase of nearly 40% compared to the same period last year. In terms of after-tax profit, after a loss in 2020, Hankook Vietnam showed improvement in its business situation when it recorded a positive net profit, reaching over 1 billion VND in 2021 and in 2022, the company’s after-tax profit saw a significant decrease, returning to a net loss.

The increase in population creates a greater demand for mobility and transportation, which promotes the development of the automotive industry and tire manufacturing in Vietnam. Consumers are becoming more aware of the use of quality tires, which plays an important role in promoting the development of this industry. The government is focusing on improving infrastructure, enhancing safety standards, and planning to increase vehicle production, which is expected to contribute to the growth of the tire manufacturing industry.

Source: Vietdata's 2022 Car Tire Market Report.


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