DRC Tires Export expected to grow at a rate of over 10% per year.
DRC Tires Export statistic
- Vietnam Tires Export statisitc:
In the past 5 years, Vietnam Tires export industry has grown rapidly by an average of 17.8% and brought in more than $ 1.2 billion in just 2019. Vietnam tires are being exported globally. Including fastidious markets such as the US, Brazil, Japan, and India with famous brand : DRC Tires, King Tire Vietnam, CSM Tire .
The domestic tire industry also grew by 8.6%, nearly double the world average.
2. DRC Tires Export statistic:
In particular, DRC Tires (Da Nang Rubber Joint Stock Company) has exported products to more than 50 countries around the world (data as of 08/2020), mainly in markets in Asia, Africa, South America, Europe.
DRC Tires Export recorded 43% of export revenue compared with 57% of domestic sales; with some major export markets such as Brazil, America, India, Malaysia, Myanmar, Thailand, Egypt, Philippines. In terms of total revenue from domestic and export, automobile tires and tubes are the key products of DRC Tires, accounting for more than 85%.
DRC Tire’s Export business situation in 2020
1. DRC Tires Export in Covid-19 Season:
However, it can be seen that the outbreak of the Covid-19 epidemic has slowed down the rotation of the Vietnam Tire industry in general and DRC Tires Export in particular when demand for car products has declined rapidly, many car manufacturers have to announce to stop production in capital markets is the strength of Vietnam Tires.
Get through hard times, Vietnam has very well controlled the Covid-19 Epidemic, that helps DRC Tire’s business stay stable in this time.
Expected from here to the end of the year, DRC Tire’ll grow at a rate of 10% .
2. DRC Tires Export in US Market:
In addition, in June 2020, the US Department of Commerce DOC spoke up about the anti-subsidy investigation with a number of Vietnam tire products, which also created unfavorable information for the industry.
DRC Tires export has experienced the first quarter of 2020 quite smoothly with pre-tax profit of 46.8 billion dong, more than double the same period ( 200%). However, in the latest report for the first 6 months of 2020, DRC Tire’s Export recorded revenue of 1,592 billion VND, profit after tax was 80.7 billion VND, down 17.1% and 8.3% compared to the first 6 months of 2019.
Accordingly, the first is that the US DOC initiated an anti-dumping investigation on Vietnam Tire products, because DRC Tire mainly exports all-steel radial tires to the US, not products under investigation, so it is not affected.
3. Opportunities for DRC Tires Export:
Evaluation from SSI Research (SSI Securities Research Center) shows that, although DRC Tires export business results are not as positive as expected in the general situation, the enterprises are taking advantage of products and optimally exploiting.
The potential export potential shows that DRC can completely re-grow rapidly in the second half of 2020 and grow very well in 2021.
Next is the EVFTA – Vietnam – EU Free Trade Agreement, since 2018, DRC Tire’s Export has enjoyed 0% tax into Europe.
However, DRC Tire said that thanks to new product innovations, we have achieved certification according to EU standards and planned to bring the product to market early and conquer this difficult market.
In addition, DRC Tire is also one of more than 200 “reputable exporters” according to the Ministry of Industry and Trade, just announced on August 20, promising practical support from the Government to boost exports and expand markets, especially when Vietnam has entered into a series of bilateral and multilateral Free Trade Agreements.
Business strategy of DRC Tires Export
Maintain old markets – expand into new markets
According to the business report at the end of 2019, DRC Tire affirms this enterprise’s determination to develop well the domestic market, while expanding further to potential markets in Europe and America.
Along with that are long-term goals with the development of key products such as all-steel radial tires, semi-steel tires, tubeless motorcycle tires with new factories, large capacity, for example factories. radial DRC Tire can operate with a maximum capacity of up to 1,200,000 tires / year.
At the same time, DRC Tires Export also increases the sustainability of the brand by meeting product standards such as US safety D.O.T, Japanese industrial quality standard JIS, European EMARK quality standard.
The line of bias tires, special tires, and agricultural tires is also interested in improving and diversifying models. It is easy to see that DRC tires and tubes are quite well present in Vietnamese life with stable quality and a nationwide distribution network.
There are still challenges for Vietnam tire enterprises in general, or Da Nang Rubber Joint Stock Company in particular, but when the business equips itself with enough “strength”, returning to the reel is only a problem. subject time.
Formerly a car cover factory before liberation, up to now, Da Nang Rubber Joint Stock Company – DRC Tire has had many outstanding successes, becoming the leading tire manufacturer in Vietnam, with products available. over 63 provinces and DRC Tire exports to more than 40 countries.