Bike makers free-wheeling it in Vietnam

Some foreign-invested motorcycle manufacturers are looking to expand footprints in Vietnam through scaling up production.

Japan-backed Honda Vietnam (HVN) plans to expand its second factory in northern Vinh Phuc province to reach a total annual production capacity of two million motorcycles from the current 1.5 million motorcycles in the second half of 2011.

The $70 million factory expansion plan would be completed in mid 2011 with some 2,000 new workers being employed, bringing the total number of HVN workers to around 8,000.

Besides HVN, Italy-backed Piaggio Vietnam also decided on growing its presence in the Vietnamese market.

Accordingly, the firm intended to triple its production from 100,000 to 300,000 scooters in mid 2012 with an estimated investment of $40 million, bringing its total Vietnam-based investment to $70 million. The firm also attempts to employ more labourers to achieve the target of having a 1,000-stronmg in the Vietnam-based workforce by 2012.

Since getting its Vietnam-based factory going online in June 2009, Piaggio Vietnam had been operating effectively with a stable year-on-year growth, according to the firm’s general director Costantino Sambuy. Thereby, the firm’s leadership decided to boost production in Vietnam and turn the country into a launching pad to amplify its influences in Asia.

Honda Vietnam and Piaggio Vietnam are also two firms which have made constant efforts for customer satisfaction through enabling product upgrade and network expansion plans.

For example, in 2007 HVN for the first time launched into the Vietnamese market automatic-gear Air Blade motorcycle model which was later subject to annual upgrades to meet customers’ volatile tastes. Consequently, sales figures of this motorcycle line rapidly rose with 950,000 vehicles being sold since its dawn in 2007.

As planned, HVN is set to churn out about 30,000 Air Blade motorcycles per month in 2011 which may be later increased to 40,000 units per month on the heels of its factory expansion plan.

As with Piaggio Vietnam, from the inception up to now the company sold out 87,000 scooters. Amid its incessant efforts into network expansion, the firm now operates an extensive network of 90 showrooms across the country, more than double compared to in 2006 when it only had 40 showrooms. – VIR

Tags: Vietnam motobike market, Vietnam Scooter market