tnamese companies are rushing into the radial tire business.
Citing growing demand for tires driven by fast-rising sales of new cars and trucks in the country, a number of companies have announced plans to build radial tire plants in the country.
The Viet Nam Chemical Group (Vinachem) has already made a $55 million investment in a new radial plant, the news service said. The plant, in Binh Duong Province, is expected to open in 2011 with an initial capacity of 1 million tires per year.
Another Vinachem subsidiary, Da Nang Rubber Joint Stock Co., said it will start construction of a radial tire plant in Da Nang City. That plan will also open next year, with an initial capacity for 600,000 tires per year.
The two plants are expected to reach a combined capacity of 2 million units per year, but, at present, Vietnam’s yearly consumption stands at only 1 million units, fuelling concerns about an oversupply in the market.