11:43:15 AM | 23/10/2007
According to helmet manufacturers, market demand quantity now is estimated about 40 millions of helmets. With VND 150,000 per helmet (nearly 10 USD), total revenue from market is expected to be VND 6,000 billion (nearly US$400 million). However, another estimate shows that total amount of earnings from helmet sales will be VND 8,000 billion because a remarkable number of imported helmets have higher price, from 400 to 500 thousands VND or even more than two millions VND for each helmet.
On one side, local production capacity has not met the helmet market demand; on the other hand, instructions of wearing helmet have not been fully followed, causing limited production of helmet. The helmet market now lacks of both quality and quantity.
Cautious Attitude towards Market Turmoil
A helmet manufacturer strongly complained that in 2000, the obligatory instructions of wearing helmet were not been strictly complied, leading many enterprises pointlessly investing their capital into helmet production. Indeed, after the circular of wearing helmet had been promulgated by Ministry of Communications and Transport, helmet market was no longer eventful. At that time, price of helmet down to 20- 50 percent could not make customers interested.
This caused stagnation of helmet consignments and loss for enterprises that had thorough plan for helmet production but not being able to find the demand. For the second time in 2004, because of loosen control of the authorities, there were 30 enterprises registered for helmet production in Ho Chi Minh City, nine of which abandoned their production in 2001; ten enterprises just sold their stocks; and only eight enterprises continuing their production factually sold the rest of helmets. On the other hand, many enterprises ground their helmets for plastic.
For two last bone and blood experiences, the third instructions of wearing helmets make the manufacturers more cautious about market turmoil.
Delay of Authorities
At the moment, the lowest price for each helmet costs VND 100,000. Many kinds of product has more costly price such as US$140 for an imported helmet of Piagio (nearly VND 2, 200,000 million). Other imported helmets ranging from 400,000-500,000 VND become more prevalent.
Helmet market share, an “unbaked pie” worth nearly 8VND billion, has been untapped because of unresponsive enterprises, opportunity merchants with non-standard helmets and inability of authorities to control the market.
According to the Directorate for Standards and Quality, there have been 10 helmet manufacturers in the country and 50 helmet importers, who are qualified to supply helmets in accordance with TCVN 5756:2001. Besides, the statistics show that there have been just 48 of 148 helmets brands registered and protected in Vietnam. In addition, from 2006 to July 2007, after verifying seven consignments with 34,040 helmets of 10 brands, the QUATEST 1 discovered three consignments with 12,760 non-standard helmets. However, the authorities seem to take indecisive action against these alarmed practicalities, leading a loss for consumers.
K.A
Vietnamese
