Vietnam Tire Market Research Report: Forecast (2026-2032)

Vietnam Tire Market Key Takeaways

• The Vietnam tire market is projected to grow from USD 1.77 billion in 2025 to USD 1.83 billion in 2026 and USD 2.54 billion by 2032.
• The industry is projected to witness steady growth at a 5.62% CAGR during 2026–2032.
• Based on tire type, radial tires are expected to remain dominant, accounting for approximately 72% market share in 2026.
• By demand type, replacement tires are anticipated to lead with approximately 68% market share in 2026.
• The industry is moderately consolidated, estimated to account for approximately 42% of organized passenger-tire sales.

Vietnam Tire Market Size and Outlook

The tire market in Vietnam is projected to increase from USD 1.77 billion in 2025 to USD 1.83 billion in 2026 and USD 2.54 billion by 2032, advancing at a 5.62% CAGR during 2026–2032. The market is entering a broader product-application phase, with demand spanning passenger cars, motorcycles, commercial vehicles, agricultural equipment, and industrial machinery. Vietnam’s localized automotive-component ecosystem includes tires and inner tubes among 287 domestically produced components, supporting local product availability.

At the same time, the established motorcycle-manufacturing base and expanding automotive supply chain provide multiple recurring demand pools. These factors should sustain market expansion while encouraging suppliers to develop application-specific tire portfolios for Vietnam’s increasingly diverse vehicle and equipment base.

Vietnam Tire Market Key Indicators

• Vietnam transported over 2.2 billion tonnes of freight by road in 2025, increasing 7% year-on-year, according to the Ministry of Construction. Rapid growth in road freight increases truck mileage and operating intensity, directly supporting demand for commercial-vehicle tires and replacement tires.
• Vietnam’s total freight transportation reached 03 billion tonnes in 2025, increasing 14.1%, while freight turnover rose 13.1% to 612.3 billion tonne-kilometers. Higher freight volumes and vehicle-kilometers indicate stronger fleet utilization, accelerating tire wear and creating recurring replacement demand across trucks and other commercial vehicles.
• Vietnam’s automobile output increased 39.1% in 2025, according to the Ministry of Industry and Trade. Stronger vehicle production increases OEM tire procurement while expanding the installed vehicle base, which subsequently generates additional replacement demand throughout vehicle lifecycles.
• Passenger transportation reached 18 billion passenger trips in 2025, increasing 22.2%, while passenger traffic rose 13.6% to 312 billion passenger-kilometers. Increasing passenger mobility raises operating intensity across cars, buses, taxis, and motorcycles, supporting recurring demand for passenger and commercial replacement tires.
• Vietnam’s manufacturing of rubber and plastic products increased 16.1% in the first half of 2025, according to the Ministry of Industry and Trade. Stronger rubber-product manufacturing indicates expanding downstream processing capabilities and supports the domestic industrial ecosystem supplying tire manufacturing and related rubber-based components.
• Vietnam exceeded 3,000 km of expressways by the end of 2025 and is targeting 5,000 km by 2030. Expanding high-speed road infrastructure increases interprovincial mobility and freight connectivity, raising vehicle mileage and consequently accelerating tire consumption and replacement cycles.

Vietnam’s Tire Exports Reach USD 2.9 Billion as Trade Surplus Hits USD 2.4 Billion

Vietnam’s tire trade data indicates a strong export-oriented manufacturing base, while imports remain important for selected cost-competitive and specialized products. Tire imports declined from USD 536 million in 2022 to USD 474 million in 2024, while import volume decreased from 107 thousand tons to 92 thousand tons, indicating improving domestic supply relative to import dependence. Thailand and China remained the principal suppliers in 2024, contributing USD 202 million and USD 164 million, respectively, or approximately 77% of total import value. Their combined volume reached 72 thousand tons, accounting for nearly 78% of imports, reflecting the importance of competitively priced regional supply for replacement and commercial-vehicle applications.

In contrast, Vietnam’s tire exports increased from USD 2.2 billion in 2022 to USD 2.9 billion in 2024, while export volume rose from 500 thousand tons to 539 thousand tons. This generated an estimated USD 2.4 billion trade surplus and a 447-thousand-ton volume surplus in 2024, reinforcing Vietnam’s position as a major tire manufacturing and export hub. The United States absorbed USD 1.3 billion, approximately 45% of export value, creating substantial demand for Vietnam-produced tires. Brazil, Russia, Canada, and Mexico provided additional diversification.

The export momentum is supported by domestic automotive demand. Vietnam’s estimated domestic car production reached 388,500 units in 2024, up 27% year-on-year. Additionally, Vietnam’s 2024 tire sales increased 3.8% in the car segment, while motorcycle tire sales rose 15.3%, supporting both OEM and replacement demand.

Vietnam Tire Market Scope

Vietnam Tire Market Growth Drivers

Rapid Expressway Expansion Increasing Tire Utilization and Commercial-Mobility Demand

Vietnam’s accelerated road-infrastructure expansion is creating a direct structural tailwind for tire consumption by increasing vehicle connectivity, travel intensity, and freight movement across provinces. By the end of 2025, the country had 3,345 km of main expressways in operation or technically opened, together with 458 km of interchanges and connecting roads, exceeding the national 3,000-km target. The Ministry of Construction reported that nearly 400 km of additional expressways entered operation during H1 2026, further improving connectivity between industrial centers, logistics corridors, and major urban markets.

This infrastructure expansion has a direct implication for tire demand because longer, faster road journeys increase vehicle utilization and accelerate tire wear, particularly among trucks, buses, passenger cars, and logistics fleets. The government is targeting 5,000 km of expressways by 2030, indicating that the current infrastructure build-out is not a one-time development but a continuing demand catalyst. Moreover, improved road connectivity is expected to support greater movement of manufactured goods and agricultural products between production regions and consumption centers, increasing mileage accumulated by commercial fleets and consequently strengthening recurring tire replacement requirements.

Recent Trends

Tire Recycling and Retreading Strengthen Sustainability Focus

Vietnam’s tire industry is increasingly moving toward tire lifecycle management, driven by regulatory requirements for the collection and recycling of used tires and growing emphasis on resource efficiency. Under Vietnam’s EPR framework, tire and inner-tube producers and importers are required to fulfill recycling responsibilities, creating a stronger incentive for manufacturers to develop collection, retreading, and material-recovery capabilities. This is particularly relevant because retreading can extend the usable life of tire casings while reducing demand for new raw materials.

Da Nang Rubber Joint Stock Company (DRC) provides a direct industry example. The company has been recognized by Vietnam’s environmental authorities as an eligible used-tire recycling entity and operates a retread-tire factory with an annual capacity of approximately 110,000 tires. DRC’s activities demonstrate how Vietnamese manufacturers are integrating tire reuse into their business models rather than treating sustainability solely as an environmental-compliance issue. The company’s continued focus on retreaded products supports material conservation, extends tire service life, and creates an additional aftermarket revenue stream. Consequently, recycling and retreading are emerging as practical components of Vietnam’s transition toward a more circular tire industry.

Vietnam Tire Market Opportunities and Challenges

Raw-Material Cost Volatility Leading to Higher-Value Tire Manufacturing

Vietnam’s tire producers remain exposed to fluctuations in natural-rubber costs because rubber is a core input in tire manufacturing. In 2025, Vietnam produced 1.35 million tonnes of natural rubber, up only 1.4% year-on-year, while the Ministry of Industry and Trade reported that tighter global supply and recovering automotive demand were keeping rubber prices elevated. Such cost pressure can squeeze tire manufacturers’ margins, particularly where producers compete in price-sensitive replacement markets and cannot fully pass input-cost increases to customers.

At the same time, elevated input costs are encouraging movement toward higher-value, technologically differentiated products, creating an opportunity to improve margins rather than compete solely on price. Vietnam’s rubber industry exported USD 2.1 billion of C/O-certified rubber during January–November 2025, reflecting stronger movement toward value-added and traceable products. This direction aligns with tire manufacturers’ capacity upgrades; for example, DRC commissioned its Phase 3 radial-truck-tire expansion in December 2025, raising annual capacity to 1 million tires. Such investments can support premium radial products and improve manufacturers’ ability to absorb raw-material volatility.

Segmentation Insights

Radial Tires Hold 72% Share as Vietnam’s Automotive Production Expands

Radial tires are estimated to hold approximately a 72% share in 2026, reflecting their widespread application across passenger cars, trucks, buses, and modern commercial vehicles. Their durability, improved fuel efficiency, heat dissipation, and suitability for higher-speed operations make them increasingly preferable as Vietnam’s vehicle base modernizes. The demand environment is reinforced by domestic automotive manufacturing Vietnam’s automobile output increased 39.1% in 2025, according to the Ministry of Industry and Trade. This expansion strengthens demand for radial tires across both OEM and replacement applications.

A notable 2025 development supporting this segment was Casumina’s completion and commissioning of additional equipment for its Patagonia M/T steel-belted tire production line in June 2025. The investment increased the company’s steel-belted tire production capacity to 1.5 million tires annually, primarily targeting export markets. The development demonstrates continued investment in advanced tire manufacturing technology and production capacity by Vietnam-based manufacturers, while strengthening the availability of domestically produced radial products for international and regional applications. Based on the tire type, the market is further bifurcated into:

• Radial
• Bias

Replacement Tires, estimated 68% Share, supported by Rising Vehicle Utilization and Aftermarket Services

Replacement tires are estimated to account for approximately 68% share in 2026, supported by Vietnam’s expanding vehicle usage and the recurring need for tire replacement caused by mileage, tread wear, road conditions, and commercial operating intensity. Government statistics show that transportation activity strengthened substantially in 2025. During Q1 2025, freight transport reached 715.8 million tonnes, increasing 15.4% year-on-year, while freight traffic rose 14.7% to 138.6 billion tonne-kilometers. Passenger transport also expanded, with 1.414 billion passengers carried, up 17.6%. These indicators demonstrate higher vehicle utilization, particularly across commercial fleets, creating greater wear-related demand for replacement tires.

The aftermarket opportunity is further reinforced by Vietnam’s automotive component ecosystem. The Ministry of Industry and Trade identifies automotive tires and inner tubes among the 287 localized automotive components currently produced domestically, demonstrating an established manufacturing base supporting replacement availability. The Ministry also reports that Vietnam imports approximately USD 2–3.5 billion of automotive components annually for vehicle production, assembly, and repair, indicating substantial activity across the broader aftermarket and maintenance ecosystem. Consequently, tire dealers, workshops, repair centers, and component distributors remain important channels connecting manufacturers with the replacement market. Based on the demand type, the tire industry in Vietnam is further bifurcated into:

• OEM
• Replacement

Vietnam Tire Market Competitive Analysis

The Vietnam tire industry remains moderately consolidated, with strong competition between international manufacturers and established domestic producers. Bridgestone Corporation, Michelin SCA, The Yokohama Rubber Co., Ltd., Kumho Tire Co., Inc., and Sailun Group Co., Ltd. form the leading five among the identified companies, collectively estimated to hold approximately 42% of organized passenger-tire sales, while Casumina and DRC strengthen domestic competition.

Key Companies in the Vietnam Tire Market

• Bridgestone Corporation
• Michelin SCA
• The Yokohama Rubber Co., Ltd.
• Kumho Tire Co., Inc.
• Sailun Group Co., Ltd.
• The Southern Rubber Industry JSC (Casumina)
• Da Nang Rubber Joint Stock Company (DRC)
• Pirelli & C. S.p.A.
• The Goodyear Tire & Rubber Company
• Continental AG
• Others

Vietnam Tire Industry News and Recent Developments

May 2026: DRC Launches Three New Agricultural Tire Sizes for Vietnam’s Mechanized Farming Market

Danang Rubber Joint Stock Company (DRC) introduced three new agricultural tire sizes in 2026, designed for modern farming equipment used in Vietnam. The company stated that the new models are developed to address requirements for heavy-load capacity, traction, and durability as agricultural mechanization expands. The launch broadens DRC’s specialized tire portfolio beyond passenger, truck, and motorcycle applications and strengthens its positioning in Vietnam’s agricultural equipment segment.

Impact Analysis: The launch demonstrates Vietnamese tire manufacturers’ increasing focus on specialized applications, enabling DRC to capture demand from agricultural machinery while diversifying beyond conventional replacement-tire categories