The project will be built across 43 hectares in Minh Hung Sikico Industrial Park. With a total investment of $500 million, this is the largest foreign-invested project in Binh Phuoc.

The factory will specialise in producing semi-steel and all-steel radial tyres for cars and other vehicles. Under the plan, the factory will have an annual output worth an estimated $700 million. In addition, the factory will create around 1,600 jobs for local residents and 200 for foreign personnel.

After completing the necessary procedures, the company will break ground on the project to build warehouses and install production lines. The facility is slated to be put into operation in the third quarter of 2025.

Once operational, the project will consume 120,000 tonnes of rubber per year, including both natural and synthetic materials. Of this, the company will source 80 per cent from Vietnam and import 20 per cent from China.

Along with Haohua, some other Chinese manufacturers, such as Sailun, also have plans to expand their tyre production capacity in the country.

Chinese tyre companies have built up semi-steel production capacity to 11 million tonnes per year in Vietnam and full-steel production to 7.2 million tonnes, according to a report by ResearchAndMarkets.com.

Shandong Haohua Tire has been in the industry for more than 20 years. Currently, the company ranks among the top 10 in China's tire manufacturing industry and sits 32^nd globally.

The Chinese tyre maker has a production capacity of 20 million semi-steel and 4.8 million all-steel tyres. The company's products are mainly exported to overseas markets, accounting for 75 per cent of total sales.