On May 14th, 2015, Minister of Industry and Trade has issued Decision 4665/QD-DCT on “Planning of Vietnam Rubber industry development by 2025, with a vision towards 2035”.
The plan focus on equipments and spare parts for the motorcycles and automobiles industry (tires, seals, gaskets and other rubber parts)… for the new development trend of the industry by 2025.
The main focus is to increase the use of domestic raw materials, focus investment on rubber products which have competitive advantage, gradually develop high-quality products, application of high-tech industries, environmental friendly products.
The goal is to meet domestic demand for equipments, reduce imports, increase exports. The specific objective is to achieve the average growth rate of rubber product industry production value of 14-15% in 2015-2020, 15% in 2021- 2025, and 12% in 2026-2035. The export turnover of rubber products reach $750 million by 2020, $2 billion by 2035. By 2020, localize material for domestic firms producing rubber products.
The plan has proposed implementing projects to develop the production of rubber products by investing in expanding, quality improvement, technological innovation, thus improving the quality of motorcycle tires, boosting production of automobile tires in order to meet domestic demand. Expansion and increase investment in tire factory in Hai Phong, Binh Duong and in the Central, to meet the needs of the automotive industry in Vietnam. Moreover, the plan proposed building a manufacturing plant for rubber products, with the capacity of 1 million pieces/year in the period of 2015-2020, as well as investment in the construction of a steel factory, producing steel wire and carbon black for production of rubber products.
In 2021 – 2025, a new manufacturing plant will be built in the Central part of Vietnam, specialized in wire conveyor belts with a capacity of 500,000 m2 / year and 1 million meters conveyor/year. Moreover, the plan aims to increase the capacity of radial tire factory in the North.
To implement this plan, the Government will adopt some new policy: (1) support the development of scientific and technological enterprises; establish Research Center on rubber technology for researching, testing and improving the quality of rubber product; (2) Developing product standards for tires, conveyor belts and other standards and regulations in regional and international levels. Other policies for the development of human resources, market, investment, environmental protection will also be implemented.