Updated Oct 2, 2022 06:10

Aircraft Tyre Market in Vietnam

Market Overview
The Vietnamese aircraft tyre market was finally on the rise to reach $ in , after two years of decline. Overall, consumption recorded a relatively flat trend pattern. Over the period under review, the market hit record highs at $ in 2008; however, from 2009 to , consumption remained at a lower figure.

In value terms, aircraft tyre production totaled $ in estimated in export price. The total output value increased at an average annual rate of +% over the period from 2007 to ; however, the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period. The most prominent rate of growth was recorded in 2013 when the production volume increased by % against the previous year. Aircraft tyre production peaked at $ in 2018; however, from 2019 to , production stood at a somewhat lower figure.


Consumption
In , the amount of tyres for aircraft consumed in Vietnam shrank slightly to units, which is down by -% on figures. In general, consumption continues to indicate a pronounced contraction. Aircraft tyre consumption peaked at units in 2008; however, from 2009 to , consumption remained at a lower figure.

The value of the aircraft tyre market in Vietnam dropped to $ in , waning by -% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). Overall, consumption saw a relatively flat trend pattern. Aircraft tyre consumption peaked at $ in 2008; however, from 2009 to , consumption remained at a lower figure.


Market Forecast
Depressed by shrinking demand for aircraft tyre in Vietnam, the market is expected to continue its downward consumption trend over the next eight-year period. The performance of the market is forecast to contract with an anticipated CAGR of -% for the period from to , which is projected to depress the market volume to units by the end of .

In value terms, the market is forecast to contract with an anticipated CAGR of -% for the period from to , which is projected to bring the market value to $ (in nominal prices) by the end of .


Market Structure
Over the period under review, imports of aircraft tyre in Vietnam were negligibly small compared to the production volumes. Therefore, the share of imports in the total market was practically nonexistent, both in volume and in value terms. This situation has remained constant over the period under review, which means that domestic producers entirely meet the domestic demand for aircraft tyre. In , the share of imports in total consumption accounted for % in value terms and % in physical terms. The share of imports remained relatively constant over the period under review. The growth in the share of Vietnam imports of in the aircraft tyre market structure from % in 2007 to % in is explained by a more substantial reduction in output, compared with a decrease in imports. In , the share of imports in total consumption accounted for % in value terms and % in physical terms. The share of imports decreased moderately (- percentage point) over the period under review.


Trade Balance
Vietnam remains a net importer of aircraft tyre; in physical and value terms, imports consistently exceeded exports from 2007 to . In , there was a trade deficit of units, which was equal to $. Those figures reflect the fact that neither imports nor exports don’t dominate the trade balance, and the country may export not only the product manufactured domestically, but also re-export some previously imported goods.