Metallurgy / Chemicals / Rubber & Plastics

According to the Ho Chi Minh City Plastics and Rubber Association. Ho Chi Minh City, Vietnam is among the top 10 U.S. tire exporters, with Vietnam ranking third among the countries supplying U.S. light truck tires.

Vu Hoang An, vice chairman and secretary-general of the Vietnam Rubber Association, said that the COVID-19 epidemic will be gradually controlled in 2022, but the world economy will continue to face challenges such as rising inflation and rising energy commodity prices. However, enterprises in the rubber industry are actively overcoming the difficulties of domestic export and consumption.

In the first half of 2022, exports of the rubber industry continued to maintain a growth momentum. Exports of pre-processed rubber were 787,000 tons, valued at $1.4 billion, up 13.3 percent from 2021. At the same time, the export of most of Vietnam's rubber products is growing, with a total export value of 2.2 billion US dollars, a year-on-year increase of 12.9%.

It is worth noting that the export value of the largest product in the tire and rubber processing industry is 1.1 billion US dollars, an increase of 28.9% over the same period in 2021.

In terms of Vietnam's tire export market to 140 countries, the United States is the main market, with an export value of nearly US$650 million, a year-on-year increase of 37%.

In the first half of this year, 150 companies from Vietnam participated in tire export. Among the top 10 exporters are Da Nang Rubber Joint Stock Company (DRC), Southern Rubber Industry Joint Stock Company (Kasumina), etc.

According to Mr. Nguyen Quoc Anh, Chairman of Ho Chi Minh City Plastics and Rubber Association. Ho Chi Minh, recently due to the impact of the US-China trade war, Vietnam's plastics and rubber industry has benefited from the transfer of many orders from China to Vietnam, such as tires.

Therefore, Vietnam is one of the top 10 exporting countries of U.S. tires, among which Vietnam ranks third among suppliers of light truck tires to the U.S. market. Currently, Vietnamese companies export tires to the alternative installation market.

According to the introduction of the United Kingdom, among the 10 tire exporting enterprises, 7 are foreign-funded enterprises, led by Sailun (China) Co., Ltd., with a turnover of nearly 1 billion US dollars.

In terms of production scale, Vietnam has two major tire manufacturers, DRC and Casumina, the world's largest 75 tire manufacturers. Casumina exports 2 million tires to the United States each year.

In fact, according to the UK, some Chinese goods go to Vietnam to strip stamps and label them Made in Vietnam for export to third countries.

There are strict conditions for tires to be exported to the United States. The company must have a DOT code, and an American representative should apply for this DOT code. Therefore, it is difficult for Vietnam to import Chinese tires on the label of Vietnam's exports to the United States.

“For tires, technical rubber is not subject to commercial fraud when it is exported abroad. However, foreign companies taking advantage of Vietnam to obtain tax incentives, such as Chinese companies that manufacture tires in Vietnam, export to the United States.

"We are not worried that the growth of tire exports to the US will be suppressed by trade protection measures. At the same time, foreign companies produce and sell in overseas markets, not domestic sales, so they are not worried about competition," Britain said.