Yamaha Plans to Expand Production in Vietnam

Yamaha Motor Vietnam Co., one of the major motorbike makers in Vietnam, has announced that it has submitted a plan to raising its investment capital in the country to US$123.3 million from the current US$80.26 million.

 

Of the sum, Japan’s Yamaha contributes 46 per cent of the capital, Vietnam’s Vinafor 30 per cent and Malaysia’s Hong Leong Industries Berhad 24 per cent - the same stake proportions as the Yamaha Motor Vietnam foundation contributions.

 

The tripartite Yamaha Motor Vietnam joint venture will increase its legal capital to US$37 million from the US$24.25 million.

 

Yamaha Motor Vietnam also asked the Ministry of Planning and Investment for permission to extend its operational lifespan to 50 years instead of 40 years.

 

Yamaha Motor Vietnam recorded US$300 million revenues in 2005.

 

The Japanese-led motorbike maker will manufacture 350,000 motorbikes in 2006 and 420,000 units in 2007, according to Yamaha Motor Corp.

 

At present, Yamaha Motor Vietnam has some 175 sales agents nationwide.

 

Yamaha Motor Vietnam is one of seven foreign-led motorbikes makers in Vietnam, such as, Honda, Suzuki, SYM, Lifan and VinaSiam.

 

Vietnam is also home to 45 domestic motorbike production firms. However, the motorbike industry is in the hands of the seven foreign-invested firms, which produced 422,600 units in the first four months of this year, or 67 per cent of the total output of the motorbike industry.