The Vietnamese tire market is projected to have a compound annual growth rate of more than eight percent during 2014-2019, a global market research firm said in its latest report.

The tire market in Vietnam is expected to be driven by prominent factors including growing automobile sales, a rising automobile fleet, favorable government policies and increasing foreign investments in the automotive sector, TechSci Research said Friday, citing findings from its “Vietnam Tire Market Forecast & Opportunities, 2019.”

Vietnam is “emerging as a major consumer of tire in Asia-Pacific on account of significant rubber resources and growing motorization level,” the report stated.

The “Vietnam Tire Market Forecast & Opportunities, 2019” has evaluated the future growth potential of the tire market in Vietnam and provides statistics and information on market structure, exports and future growth potential, according to TechSci Research.

“The report is intended to provide cutting-edge market intelligence and help decision makers in taking sound investment evaluation…[It] also identifies and analyzes the emerging trends along with essential drivers, challenges and opportunities available in the tire market in Vietnam,” the company said in a press release.

Vietnam is the third largest rubber producing nation worldwide, TechSci said, citing the Association of Natural Rubber Producing Countries.

“This, in turn, provides considerable opportunities to tire manufacturers to increase production capacities and establish new manufacturing plants in Vietnam,” the report reads.

In 2013, the two-wheeler tire segment dominated the Vietnamese tire market with a majority share, followed by the passenger car and commercial vehicle & OTR tire segments, according to the report.

OTR, or off the road, tires include tires for construction vehicles such as wheel loaders, backhoes, graders, trenchers and large mining trucks.

Vietnam mostly imports automobile tires from countries such as Thailand, Indonesia, China and Japan. Thailand remained the largest exporter of tires to Vietnam in 2013, followed by Japan, China and Indonesia.

These countries cumulatively accounted for around 72 percent of the total tire imports in Vietnam in the same year.

Tires produced in Vietnam, meanwhile, are shipped to countries like the U.S., Malaysia, Saudi Arabia and Brazil, among others.

In Vietnam, Ho Chi Minh City, the Mekong Delta city of Can Tho and Bien Hoa, the capital city of the southern province of Dong Nai, form a dominating region for tire sales, which makes up some 41 percent of the total sales volume in the country, according to Karan Chechi, research director with TechSci Research.

Bridgestone, Michelin and DRC are the top tire brands in Vietnam, and these “are expected to lead the market during the forecast period in spite of competition from other players, due to their high quality and brand availability,” Chechi said.

TechSci Research is a global market research and consulting company which provides research-based consulting solutions to its customers worldwide, spanning a range of verticals.

The company has offices in Canada, India and the UK.

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