The Binh Phuoc administration on Monday awarded an investment registration certificate to Shandong Haohua Tire Co. Ltd., a leading tire manufacturer in China, for its project to build a tire plant in the southeastern Vietnamese province.

Haohua (Vietnam) Tire Manufacturing Plant will be built at a cost of about US$500 million from Shandong Haohua, which is among the top 10 tire producers in China and ranks 32rd in the world’s top 75 tire manufacturers.

Located on 43 hectares at Minh Hung Sikico Industrial Park in Binh Phuoc’s Hon Quan District, the project will break ground in the first quarter of 2024 and be put into operation in the third quarter of 2025, employing some 1,600 local and 200 foreign workers.

The plant will be capable of manufacturing 14.4 million sets of tires per year and will consume some 120,000 tonnes of rubber per year, 80 percent of which will be sourced domestically and the rest will be imported.

The plant will produce two groups of products, including semi-steel radial tires and all-steel radial tires, for cars and other vehicles.

This is the largest foreign direct investment (FDI) project to have been attracted to Binh Phuoc so far, putting the province in the top 10 localities securing the most FDI in Vietnam in the first half of 2023.

Speaking at the certificate awarding ceremony, chairwoman of the Binh Phuoc People’s Committee Tran Tue Hien pledged to create favorable conditions for the investor so that the project can come into operation soon and achieve the highest operational efficiency.

The fact that the plant will consume about 96,500 tons of raw rubber from domestic sources is of great significance, as Binh Phuoc is the locality with the largest rubber tree area in the country with more than 240,000 ha, Hien said.

The project is therefore expected to help increase the revenue of the province’s rubber industry, promote local economic restructuring, and improve people's income, the chairwoman said. 

During the first half of this year, Binh Phuoc registered a high industrial production growth rate of 8.85 percent and an economic expansion of 7.27 percent, the highest in the southeastern region, according to local authorities.

Over the January-August period, the province has attracted 26 FDI projects worth more than $710 million, 2.37 times higher than the year’s plan.

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