Vietnam province approves $500m Chinese tire project

Binh Phuoc, Vietnam – Vietnam’s southern Binh Phuoc province has approved 15 investment projects, worth a total of $610 million (€540 million): the most prominent one being a major tire production facility.

China’s Shandong Haohua Tire. Ltd is planning to produce passenger car tires and all-steel truck and bus tires in the province, announced the local government 10 July.

The statement did not provide details about the project’s timeline or planned production capacity.

Officials from Haohua Tire met with Binh Phuoc province leaders earlier in March, when the local government said it removed obstacles in the way of the investment.

In a statement 15 March, the local authority said it would offer incentives for the tire industry as well as tax breaks and other preferential policies.

Haohua Tire has three plants in China with an overall nameplate capacity of 5 million truck and bus tires and 20 million passenger car tires each year.

Furthermore, the company is advancing an ‘export-orientated’ substantial tire project in Hambantota, Sri Lanka.

Launched in 2020, the plant is currently undergoing phase II of construction according to Chinese media.

The facility will be ultimately having a capacity to produce 3 million truck and bus tires and 17 million passenger car tires, Haohua told ERJ in 2020.

Phase I of the project involved an annual capacity to produce 1.5 million units of truck/bus tire and 7.5 million units of passenger car tires.