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VIETNAM
This is a huge disadvantage for us, despite how hard we have been working to get into the US market.”
“Our only way to counteract this is to find a distributor who can take on larger quantities of stock to serve the local market.” Unsurprisingly, Yew had much to say about the influence of Chinese tyres. “Unless the price of Chinese tyres increases or people understand the benefits of quality, it will still be problematic for retreaders.” However, the scenario was not all negative, according to Yew; “With global action being taken
Asia Retread Working
Hard in Tough Market
Asia Retread have been working out of Ho Chi Minh City (Saigon) for about 10 years now, despite changing owners three times. The company employs ten people, who all work in the factory over a single shift from 8am until 5pm.
Using a 16-tyre autoclave, Asia Retread manages to retread 1,000 tyres per month utilising a mixture of casings. Some casings are customer owned, whilst the retreader also buys in casings when demand is high.
Although road conditions are improving in Vietnam, it is a constant challenge to find good quality casings. Considering this, it is no surprise that that Asia Retread opts to retread Chinese casings.
As is commonly the case in
against anti-pollution and with new tyre prices increasing, I think brighter times could be ahead for the market. With the price of carbon black increasing by 40 to 50 per cent, this should also aid retreading.”
For the domestic Vietnamese market, Yew explained that the market will mature in the next few years and hopefully grow. This is mainly due to the development of a highway that will run from the north to south, which will, in Yew’s opinion. make retreading “very hot”.
Vietnam, Asia Retread cuts the tread from old tyres and uses it to retread tyres. This is common practice in Vietnam and is a strategy that the retreaders use to aid their own market competitivity instead
of importing or buying tread from renowned manufacturers.
The retreader’s client profile is mostly independent truck drivers, who operate in the area around Ho Chi Minh City and in the harbour area. At this moment the company does not have any plans to expand its customer base.
Toan Tah Plans to Benefit from Premises Relocation
Vietnamese Retreader Toan Tah may have only been in business for two and a half years, but the
company has big plans to move and grow in the domestic market following the
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