Despite a drop in rubber input costs, Vietnam’s tyre manufacturers are facing persistent financial strain in 2025 due to high fixed costs and softening export demand, particularly from China and the US, Vietnam News is reporting→view source.
Key details:
DRC (Da Nang Rubber):
- Q1 2025 revenue rose 21.2 percent to VND 1.19 trillion (US$45 million)
- Net profit fell 80.8 percent to VND 9.47 billion
- Gross margin dropped from 16.6 percent to 11.1 percent
- Exports account for 70 percent of revenue, but profits are declining
Casumina (CSM):
- Revenue dropped 11 percent to VND 1.02 trillion
- Pre-tax profit fell 25.9 percent to VND 17.48 billion
- Full-year 2024 ROA at 1.87 percent and ROE at 5.37 percent — both far below industry averages
- 2025 forecast: revenue down 5 percent, profit up 6 percent
Market conditions:
- Rubber prices down due to high inventories in China and weak EV demand
- Export markets challenged by low margin expansion into Europe, Middle East and Africa
- Rising fixed costs from plant expansions (e.g. DRC’s Phase III project) increasing debt load
See also: Vietnam Rubber Industry 2025: Production, Exports & Key Players