ZC Rubber secures investment approval for a $500m Vietnam factory, with passenger car and truck tyre capacity planned.
ZC Rubber has received investment registration approval and signed a land sublease agreement for a new tyre manufacturing facility in Vietnam, marking a significant step forward in the Chinese manufacturer's international expansion.
The agreements were formalised on 12 November 2026 at a ceremony in Ho Chi Minh City involving ZC Rubber, industrial park developer IDICO Corporation and local authorities.
The project will be operated by Zhongce Rubber Vietnam Company Limited (ZCV) at the IDICO Phu My II Expansion Industrial Park. It will occupy approximately 34.4 hectares, with IDICO confirming total registered investment of US$500 million.
The investment approval and land agreement establish two important milestones for the development, which is intended to manufacture passenger car and commercial vehicle tyres for domestic and international markets.
According to IDICO's official project announcement, the factory is planned to be developed in two phases.
The first phase is designed to manufacture three million passenger car radial tyres and one million truck and bus radial tyres annually.
A second phase would add capacity for a further two million passenger car tyres and 500,000 truck and bus tyres each year, alongside 150,000 tonnes of rubber compounds.
If both phases are completed as outlined, the facility would have annual production capacity of five million passenger car tyres and 1.5 million truck and bus tyres.
IDICO identifies July 2028 as the expected operational date for Phase 1, followed by July 2030 for Phase 2. However, ZC Rubber's separate announcement supplied to Tyre News Media indicates a production start in 2027. Clarification of the timetable has been sought.
ZC Rubber intends to use the Vietnam facility to support its domestic and international supply network, serving Vietnam, Southeast Asia and export markets including Europe and North America.
The development is located near the Cai Mep-Thi Vai deep-water port complex, providing access to international shipping routes.
Henry Shen, Senior Deputy General Manager of ZC Rubber, has identified manufacturing flexibility and responsiveness to changing customer requirements as objectives of the investment.
The project adds to ZC Rubber's wider plans to expand its international production footprint.
In September, Tyre News Media reported on the manufacturer's proposed $500 million tyre manufacturing complex in Egypt, which remained at the letter-of-intent stage.
Unlike that proposal, the Vietnam development has now secured investment registration approval and a land agreement, although construction and production milestones remain ahead.
Tags: ZC Rubber, Zhongce Rubber, Vietnam tyre factory, tyre manufacturing, IDICO, passenger car tyres, truck tyres, tyre production capacity, tyre factory investment, Southeast Asia tyre industry
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