Vietnam Truck & Bus Tire Market Research Report: Forecast (2024-2030)

Market Insights & Analysis: Vietnam Truck & Bus Tire Market (2024-30):

The Vietnam Truck & Bus Tire Market size is valued at around USD 384 million in 2024 & is estimated to grow at a CAGR of around 5.86% during the forecast period, i.e., 2024-30. The country's elevated infrastructure has increased passenger and cargo movement. The nation's demand for goods and passenger transportation has expanded due to the financial boom and urbanization, that have sped up infrastructure development. These projects, which consist of building new roads, increasing present ones, and enhancing the transportation network, are all planned to grow connectivity and inspire the effective motion of people and products in the country. According to OICA, sales of commercial vehicles in Vietnam grew at a CAGR of about 2.7% during 2019-23. Nearly 241,978 commercial vehicles (LCV, MHCV) were registered in the country during 2019-23. This good-sized addition to the modern fleet of commercial vehicles is predicted to reinforce the demand for truck and bus tires during the forecast period.

Vietnam is strategically situated on one of the busiest transport routes in the world. The country would operate three of the world’s busiest 50 ports in 2024, in terms of cargo throughput. Also, it shares a land border with peripheral nations such as Laos, and Cambodia who has a high dependence on Vietnam goods. These goods are only transported via land to both the countries using medium and heavy trucks. So, this geographical advantage amounts to perennial demand for commercial vehicles, and eventually commercial vehicle tires in the country. Hence, significant growth & expansion is projected for the Vietnam Truck & Bus Tire Industry in the coming years.

Vietnam Truck & Bus Tire Market Driver:

Surge in Infrastructure Development Activities Driving Market Growth – Vietnam is planning to spend around USD 65 billion on infrastructure development during 2021-30. The nation plans to build expressways, railway lines, ports, airports, etc., under its Master Plan 2030. Vietnam is making plans to develop around 10,000 km of expressways for high-paced transportation. Additionally, the country is running closer to putting in place dams, thermal power plants, and warehouses for the well-timed shipping of products. The enlargement of cities to deal with the developing wishes of the urban population is contributing to the growth & development of trucks and buses in the country. Therefore, the aftermarket sale of tires for these automobiles is predicted to grow in the years to come.

Vietnam Truck & Bus Tire Market Opportunity:

Expanding Tourism Sector to Offer Lucrative Growth Opportunities – The developing focus of the nation on promoting tourism is also boosting the demand for buses and minivans. In the first half of 2024, almost 7.5 million tourists visited Vietnam. Whereas, around 12.6 million international tourists visited the country in 2023, and 8.3 million in 2022. So, this large increase in the nation’s tourism industry is catalyzing the enlargement of the commercial automobile market. Ultimately, the replacement demand for truck and bus tires is anticipated to surge in the coming years. Vietnam anticipates hosting around, 25 million overseas tourists by 2025 and 35 million through 2030, other than around 18 million home travelers. To accommodate this number of traveler population and their logistics requirements, the sale of commercial vehicles (trucks, buses) is expected to register exponential revenue growth. Therefore, the demand for tires from this vehicle segment is likewise expected to surge during the forecast period.   

Vietnam Truck & Bus Tire Market Challenge:

Expanding Tire Retreading Activities to Impede Market Growth – The tire retreading market in the country has been witnessing an uptick, primarily driven by the truck tires market. This expansion of the retreading industry typically increases tire mileage by a considerable amount, eventually increasing the replacement duration and reducing the total cost of ownership. This directly impacts the revenues of tire suppliers in the country. The growth of tire retreading activities in the country has an inverse relationship with the growth & development of the Truck & Bus Tire Industry. Thus, the expansion of the tire retreading market presents substantial hurdles to the growth & expansion of the Vietnam Truck & Bus Tire Market.

Vietnam Truck & Bus Tire Market (2024-30): Segmentation Analysis

The Vietnam Truck & Bus Tire Market study of MarkNtel Advisors evaluates & highlights the major trends and influencing factors in each segment. It includes predictions for the period 2024–30 at the national level. Based on the analysis, the market has been further classified as:

Based on Vehicle Type:

• Truck
• Bus

The Vietnamese truck and bus tire industry was dominated by the truck segment in 2023. As of 2023, trucks grabbed around 95% market share in the registered vehicle fleet of commercial vehicles (trucks and buses only). A similar trend was observed in the commercial vehicle tire market as well. The key reasons that can be attributed to this majority share are rapid expansion of e-commerce which has catalyzed the sales of light trucks for intercity transportation, deployment of medium and heavy trucks to transport the material for construction, and mega infrastructure sites from ports and manufacturing plants. Moreover, the expansion of ports and increase in cargo handling requirements is immensely contributing to the growth in demand for trucks. Eventually, the sales of truck tires are substantially higher when compared to the bus segment.

 Two-wheelers are one of the most preferred modes of commuting in Vietnam. Of the total registered vehicle fleet of Vietnam, 60% share is cornered by two-wheelers, as reported by the Vietnam Automobile Manufacturers' Association. Moreover, the sales of buses are registering a gradual decline in the country over the past couple of years. Eventually, the market share of bus tires in Vietnam is also expected to nosedive in the forthcoming years.

Based on Demand Type:

• OEM
• Aftermarket

The aftermarket segment dominated the Vietnam Truck and Bus Tire Market in 2023. Although manufacturers such as Hino, Isuzu, Ford, VinFast, Thaco, etc., have production plants in the country, their annual requirement is much lower than the aftermarket demand. The same trend is set to prevail in the forthcoming period as well. Despite several Chinese players in discussion with local companies to set up manufacturing units for commercial vehicles in the forthcoming years, the aftermarket segment will continue to hold the majority market share.

Vietnam Truck & Bus Tire Industry Recent Development:

• 2024: China’s Guizhou Tyre to invest USD 230 million in southern Vietnam to build a new factory, the factory will bolster the production capacity of the entire project area in Vietnam, helping to cut overall production costs, expand the market space, and improve the profitability of Guizhou Tyre’s product.
• 2021: Jinhu Tire starts truck tire production at the Vietnam plant, Jinyu (Vietnam) Tire is the first overseas production base of the Jinyu Tire Group. It was planned and constructed with digitization at its heart, connecting demand from customers with its R&D and production.

Gain a Competitive Edge with Our Vietnam Truck & Bus Tire Market Report

1. Vietnam Truck & Bus Tire Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of market dynamics & make informed decisions.
2. This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
3. Vietnam Truck & Bus Tire Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.