The Vietnamese government has approved a US$500m investment by China’s Shandong Haohua Tire for the construction of a tyre factory in the southern province of Binh Phuoc.

The provincial People’s Committee awarded an investment registration certificate allowing the Chinese tyre maker to proceed with the project which would be by far the province’s largest foreign direct investment (FDI) project ever.

The factory would be built in the Minh Hung Sikico Industrial Park with completion scheduled for third quarter 2025.

The province is the country’s largest producer of natural rubber, a key ingredient in tyre production, with over 240,000 hectares of plantations.

Shandong Haohua Tire chairman, Wang Keqiang, said the plant would have a production capacity of 14.4m tyre sets a year and employ 1,600 people.

The factory was expected to supply passenger and commercial vehicle tyres for the local auto industry and aftermarket, plus export worldwide.

The company currently produces tyres in China under the APlus, Lavingator, Royal Black and Compasal brands. Its Weifang factory has capacity for 25m sets.