Vietnam Tire Market to Grow with a CAGR of 5.37% through 2030
The Vietnam tire market is driven by increasing vehicle sales, rising
demand for durable and high-performance tires, and the expansion of the
automotive sector. These are the factors driving the market in the forecast
period 2026-2030.
According to TechSci Research report, “Vietnam Tire Market – By Region, Competition, Opportunities and Forecast, 2020-2030F”,
The Vietnam Tire Market was valued at USD 3.13 Billion in 2024 and is expected
to reach USD 4.28 Billion by 2030 with a CAGR of 5.37% during the forecast
period.
The Vietnam tire market is evolving rapidly as consumer preferences
shift and industrial capabilities strengthen. With the rise of a younger, urbanized
population and a surge in vehicle ownership, especially two-wheelers and
compact cars, the market has witnessed a steady climb in both OEM and
replacement tire demand. Growing disposable incomes have encouraged Vietnamese
consumers to upgrade to higher-quality tires, placing an emphasis on
performance, fuel efficiency, and durability. This shift in consumer behavior
has led to a broader product mix and pushed manufacturers to localize
production to better meet customer expectations.
Another major growth factor is the country’s emergence as a regional
logistics and transport hub, spurred by extensive public and private investment
in transportation corridors, seaports, and intermodal networks. The expansion
of expressways and national road networks has intensified commercial vehicle
traffic, increasing the need for heavy-duty and long-lasting tires. This
infrastructure-led growth has also attracted foreign direct investment in auto
component manufacturing, including tire production, thereby boosting local
supply chains and reducing reliance on imports.
In parallel, trade agreements such as the EU-Vietnam Free Trade
Agreement (EVFTA) and the Comprehensive and Progressive Agreement for
Trans-Pacific Partnership (CPTPP) have unlocked new export markets for
Vietnamese tire manufacturers. By reducing tariffs and standardizing quality
compliance, these pacts have helped local producers diversify their customer
base and meet international demand. Export growth has become a central pillar
for manufacturers, especially those capable of producing large volumes of off-the-road
(OTR), industrial, and agricultural tires tailored for overseas markets.
Despite this growth trajectory, the Vietnam tire market must navigate
several hurdles. Talent shortages in advanced tire engineering and limited
access to high-tech machinery are stalling innovation in certain segments.
Smaller domestic players often struggle to modernize production due to capital
constraints and lack of technological partnerships. Environmental compliance is
also becoming stricter, requiring tire makers to adopt greener processes and
minimize industrial emissions, which may increase operational costs.
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Vietnam Tire Market Is Segmented by Vehicle
Type, Demand Category, Tire Construction Type, and By Region.
In 2024, the passenger car
segment emerged as the fastest growing category in Vietnam’s tire market,
driven by a surge in private vehicle ownership and rising consumer expectations
for comfort and mobility. As middle-income households expanded across urban
centers, more individuals opted for personal cars over two-wheelers for daily
commuting and inter-city travel. This shift significantly boosted demand for
passenger car tires, particularly in the replacement segment, where consumers
are increasingly attentive to performance, safety, and fuel economy. Tire
manufacturers responded by expanding product offerings with wider tread designs,
better grip, and all-season durability to meet evolving consumer preferences.
The influx of technologically advanced vehicles on Vietnamese roads further
catalyzed tire innovations, prompting interest in low-rolling resistance tires
and those compatible with advanced braking systems.
Passenger car tire growth
also benefited from improved road infrastructure, with expressways and urban
ring roads encouraging longer-distance travel. Consumers began prioritizing
tire quality to ensure smooth rides, longer life, and lower fuel consumption,
giving rise to a preference for radial tires over bias types. In metropolitan
areas, frequent stop-and-go traffic and higher temperatures increased demand
for tires with heat resistance and enhanced tread life. As vehicle imports
climbed and more local assembly plants ramped up output, original equipment
demand for tires surged in parallel. This volume growth was complemented by a
wave of service center expansions offering tire sales, balancing, and alignment
services, creating a more structured and competitive aftermarket.
Among all regions, Southern
Vietnam recorded the fastest growth in tire demand in 2024, fueled by rapid
urbanization, industrial zone expansion, and a booming logistics sector. The
region’s dense population and high vehicle density led to a steady replacement
cycle, especially in suburban districts where long daily commutes and
inter-provincial travel are common. The development of mega infrastructure
projects such as expressways and ring roads connected key economic hubs,
spurring increased tire wear and replacement frequency. Southern provinces also
experienced a higher adoption of premium tires due to a growing middle class
and greater consumer awareness about product quality and road safety. The
presence of major automotive sales and service hubs in this region further
amplified demand, as consumers had easier access to retail networks and
maintenance centers. As e-commerce and freight delivery activities expanded,
light commercial vehicle usage also intensified, indirectly boosting passenger
car tire volumes due to shared servicing infrastructure and road usage dynamics.
Major Market Players
Operating in Vietnam Tire Market Are:
- Bridgestone Corporation
- Betron Vietnam Co., Ltd
- Goodyear Tire & Rubber Company
- Sumitomo Rubber Industries Ltd
- Danang Rubber JSC
- Pirelli & C. S.p.A.
- Yokohama Rubber Company Limited
- Kumho Tire Co. Inc
- BFGoodrich Tyres
- Hankook Tire & Technology Co., Ltd.
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The Vietnam tire market is really picking up pace
right now. More people are buying cars, roads are getting better, and there's a
growing demand for quality tires. What’s exciting is how fast things are
changing—consumers are getting smarter about what they want in a tire, and
that’s pushing the market forward in a big way", said Mr. Karan Chechi, Research
Director of TechSci Research, a research-based global management consulting
firm.
“Vietnam Tire Market By Vehicle Type (Passenger
Car, Two-Wheelers, Light Commercial Vehicles (LCV), Medium & Heavy
Commercial Vehicles (M&HCV)), By Demand Category (OEM, Aftermarket), By
Tire Construction Type (Radial, Bias), By Region, Competition, Opportunities and Forecast, 2020-2030F”,
assesses the market's future growth potential and provides data on market size,
trends, and forecasts. It aims to offer comprehensive market insights, helping
decision-makers make informed investment choices. The report also highlights
emerging trends, key drivers, challenges, and opportunities in the Vietnam Tire
Market.
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