Honda Builds Second Motorcycle Plant in Vietnam
Honda Vietnam (HVN) announced Wednesday that it will spend US$80 million to build its second motorcycle plant in Vietnam.
The 28-ha plant, which is scheduled for operation in the second half of 2008, will be located next to its existing plant Vinh Phuc province, about 40 off Hanoi.
HVN said the new plant will have annual capacity to manufacture 500,000 motorbikes in the first phase before being possibly doubled to one million units in the next phase.
Currently, Honda’s existing factory is capable of turning out one million units.
Honda Vietnam is now holding around 60 per cent of the Vietnamese market share and expects to sell around one million units this year.
Two weeks earlier, Yamaha Vietnam, the second largest motorbike maker in Vietnam with some 30 per cent of market share, also started construction on its second motorbike factory in Hanoi, with designed capacity of 700,000 units.
Experts said the Honda and Yamaha’s move will kill moribund Vietnamese-run motorbike makers which only produce poor-quality vehicles for rural areas.
Fifty-two motorbike manufacturers in Vietnam are expected to sell nearly two million units this year. According to Yamaha Vietnam’s figures, four foreign firms, also including Suzuki and SYM, sold 750,000 units in the first half this year.
In addition to motorbike production, Honda Vietnam also manufactures cars in Vietnam. The company sold 1,676 cars in January-June this year. (Investment)
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