Sat, Mar 21, 2026, 14:38:00
Data from SunSirs, China's leading provider of commodities data and financial information, showed that U.S. tire imports reached about 286 million units in 2025, up 4.8% year-on-year. Thailand remained the largest supplier with 73.5 million units, benefiting from its natural rubber advantage, while imports from China fell 15% to around 21 million units due to tariff barriers.
Vietnam’s tire exports totaled $2.98 billion in 2024, ranking ninth globally, according to the Observatory of Economic Complexity (OEC). The United States remained the largest market with $1.51 billion in exports, maintaining growth momentum. In Brazil, tires were among Vietnam’s key export items in December 2025, with shipments rising 74.4% year-on-year to $43.2 million.
Domestically, the auto market - particularly trucks - has been recovering alongside improved logistics activity and stronger public investment. However, local tire makers have struggled to translate this demand into profits as raw material costs, especially natural rubber, remained elevated in 2025.
Margins under pressure
Among listed companies, Southern Rubber Industry JSC (CSM) and Da Nang Rubber JSC (DRC) are leading players in the automotive tire segment, yet both reported declining margins in 2025.
CSM (Casumina) posted Q4/2025 revenue of VND931 billion ($35.38 million), down from over VND1.19 trillion a year earlier. Full-year revenue fell 13.3% year-on-year to nearly VND4.09 trillion (VND155.27 million).
Pre-tax profit dropped to VND61 billion ($2.32 million), about 67% of the previous year, reflecting rising costs. The company improved its balance sheet by reducing bad debts and receivables, though reliance on debt collection raised concerns about the sustainability of growth.
CSM reduced its bad debt from VND88 billion to VND29 billion ($1.1 million), mainly recovering from Hung Hai Thinh JSC and PT Tire Co., Ltd. Accounts receivable also decreased sharply from VND758 billion in 2024 to only VND468 billion ($17.78 million).
The cash flow statement shows that the company collected VND406 billion from accounts receivable, a significant increase compared to just under VND4 billion the previous year. However, the reliance on debt collection raises questions about the quality of growth, in the context of competitive pressure that may force the company to be more flexible in its credit policies with customers.
By contrast, Da Nang Rubber (DRC) recorded revenue growth of 7.1% to over VND5 trillion ($190.12 million) in 2025. However, gross profit declined 7.3% to VND676 billion, highlighting input cost pressures. Pre-tax profit plunged nearly 48% to VND150.5 billion ($5.72 million).
In contrast to CSM, DRC recorded a sharp increase in accounts receivable from VND694 billion to VND1,037 billion ($39.41 million). This was mainly from foreign customers such as Oceanside One Trading and Dforce Tires & Wheels, indicating that the export market remains a focus in DRC's business strategy. However, conversely, these same partners also account for the majority of the VND194 billion in bad debts (of which only about VND134 billion is recoverable)..
While CSM and DRC, with their car tire products, are heavily influenced by the global market and the domestic automotive market, Sao Vang Rubber JSC (SRC) focuses on bicycle and motorcycle tires. However, the business results also show many unfavorable signs, facing significant pressure due to sharply rising input costs.
SRC reported revenue growth of 41.7% to nearly VND1.46 trillion ($55.29 million) in 2025. However, gross profit remained flat and pre-tax profit dropped sharply to VND32.3 billion ($1.23 million), partly due to the absence of one-off income recorded in 2024.
Overall, core operations across the sector show limited improvement despite stronger demand, mainly due to rising input costs.
Cost pressures persist into 2026
The outlook for 2026 remains challenging as natural rubber prices are expected to stay high. In addition, geopolitical tensions in the Middle East have pushed up oil prices, increasing the cost of petrochemical-based inputs such as synthetic rubber, chemicals, and tire cord fabrics.
As a result, tire manufacturers are likely to continue facing margin pressure in the near term.
Competition and value chain challenges
Despite recovering demand, Vietnamese tire makers face difficulty raising selling prices due to intense competition and limited participation in higher-value segments of the supply chain.
In the domestic market, auto sales are improving, with passenger vehicles accounting for about 70% of total sales, according to the Vietnam Automobile Manufacturers’ Association (VAMA). Electric vehicle maker VinFast also reported nearly 200,000 vehicle deliveries.
However, original equipment (OE) tire supply for new vehicles is still dominated by foreign brands such as Goodyear, Bridgestone and Michelin, while local firms mainly compete in the replacement market.
Product structure also reflects this gap. Radial tires account for about 60% of DRC’s revenue, but passenger car radial (PCR) tires make up only around 6%, indicating a continued focus on truck tires.
Casumina has developed PCR products, but these are largely for export markets, including the United States.
Upgrading capacity amid rising competition
Local companies have begun upgrading production. SRC is developing a radial tire plant in Ha Tinh province through a joint venture, while DRC has completed phase three of its radial tire factory, raising capacity to about 1 million tires per year since the beginning of 2025.
This aligns with the global shift from bias to radial tires.
However, competition is intensifying as Chinese manufacturers such as Sailun Group and Linglong Tire expand production in Vietnam, leveraging cost advantages and avoiding U.S. trade barriers.
According to Smithers, a global provider of testing, consulting, information, and compliance services, the global tire market was valued at about $282 billion in 2025 and is expected to reach $376 billion by 2030, suggesting steady long-term growth. Rising vehicle ownership and the increasing adoption of electric vehicles — which require more frequent tire replacement due to heavier weight — are also expected to support demand.
In Vietnam, state-owned chemical group Vinachem has begun cooperating with VinFast to supply products suitable for electric vehicles. Casumina signed a cooperation agreement with VinFast in 2024, while DRC has introduced EV-compatible tire products.
While demand is recovering, benefits remain unevenly distributed. Vietnamese tire makers have opportunities in both domestic and export markets, but capturing them will depend less on volume growth and more on moving up the value chain.
