Vietnamese company earns hundreds of million of USD from foreign auto empires

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VietNamNet Bridge – Contributing VND558 billion (nearly $30 million) to Honda, Toyota or Ford Vietnam many years ago, VEAM still earn hundreds of million of USD of profit each year. Though it is not too famous, the Vietnam Engine and Agricultural Machinery Corporation (VEAM) is among the State-owned enterprises with the biggest profits, sometimes far beyond giants like Vietnam Petroleum Import-Export Corporation (Petrolimex), Electricityof Vietnam Group (EVN), Airport Corporation of Vietnam (ACV) and Vietnam Coal and Mineral Corporation (Vinacomin). Established in 1990, VEAM is a state-owned corporation operating in the fields of manufacturing engines and agricultural machines serving agricultural production and aquaculture. The corporation has 20 subsidiaries, associated companies, employing 7,000 workers. It also owns an auto plant with design capacity of 33,000 trucks a year in Thanh Hoa province. VEAM also supplies parts and components for Honda, Piaggio, Yamaha … [Read more...]

Honda plants 80 hectares of forest in Bac Kan

Forest plantation in Bac Kan province

Honda Vietnam (HVN) will work with people in the northern province of Bac Kan to plant more than 80 hectares of forest this year, the fourth year in the HVN-sponsored forest-growing project in the province. On the fourth "Tree Planting Day" held on May 15, 1,500 trees were planted in an area of two hectares by some 200 HVN workers and locals. The event is part of the eight-year project (2013-2020) developed by the provincial Department of Agriculture and Rural Development with consultancy from the Japan International Cooperation Agency and Vietnam Forestry University. According to HVN Deputy General Director Kiwamu Kayano, as a sole sponsor of the project, HVN provides 4.9 billion VND (219,600 USD) for greening 490 hectares of land in Nong Thuong and Xuat Hoa communes. The money covers the costs of project building, technical training for forestry officials and local farmers and the purchase of high-quality seedlings and fertilizer. Exploitation of the trees will start in 2020. … [Read more...]

Honda Award given to Vietnamese young engineers and scientists

Japanese Honda foundation fund yesterday announced the 11th Young Engineers and Scientists’ (Y-E-S) Award for 2016 in Vietnam. The annual YES Award aims to encourage and support young engineers and scientists in developing countries. Vietnam is the first country whose students Honda has given the award since 2006 under the cooperation between Honda Foundation Fund, Honda Vietnam and the National Institute for Science and Technology Policy and Strategy Studies under the Ministry of Science and Technology. The Honda award 2016 includes two kinds: one is Honda Y-E-S and other is Y-E-S Plus. Honda Y-E-S worth US$3,000 and a Honda motorbike will be granted to 10 excellent students selected through application, essay and interviews. Y-E-S Plus award is the second phase. Within three years after receiving Honda Y-E-S award, every laureate has opportunity to apply for Y-E-S Plus worth US$10,000 if they pursue a Master or Ph.D course in schools cooperating with Japanese schools or if … [Read more...]

Honda YES 2016 launched

Honda Award for Young Engineer and Scientist (Honda YES) founded by the Honda Foundation, Honda Vietnam Company and Strategy & Science Policy –Technology Institute under Ministry of Science & Technology has been launching nationwide. Vietnam is the first country which Honda YES has been carried out since 2006. This year, the annual 11th award will offer 100 prizes and 18 students will receive the master scholarships to study in Japan. The Honda YES 2016 comprises 2 phases. Each prize is worth US$ 3,000 and one motorbike from Honda Vietnam Company. The organization board said the Honda YES 2016 will receive registration files from now till July 15. Students from 10 Inter-universities whose have good study achievements in science & technology sector and join actively in social activites can register for these scholarships. … [Read more...]

Vietnam Agricultural Machinery and Engine Development Strategy and Solutions in 2016 -2020

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Vietnam Engine and Agricultural Machinery Corporation (VEAM) was set up in 1990 as an affiliated unit to the Ministry of Industry and Trade, operated as a parent-subsidiary single-member State-owned enterprise. VEAM’s main products include machinery and equipment for agricultural production, forestry, fisheries and transport. VEAM has carried out Vietnam’s central goal of industrialising and modernising agriculture and rural areas to enhance labour productivity and reduce manual labour of farmers. Besides, VEAM is also Vietnam’s partner in many foreign-led automobile and motorcycle joint ventures like Toyota Vietnam, Honda Vietnam, Ford Vietnam, Mekong Auto and VEAM Korea. Based on the platform built up over the past 26 years, on April 5, 2016, VEAM was approved to carry out an equitisation plan by the Prime Minister. According to the plan, VEAM will be transformed into a joint stock company in January 2017 with 50 per cent stake held by the State. The corporation … [Read more...]

Motorbike manufacturers still raking in the profits

The revenue of motorbike manufacturers in 2014

VietNamNet Bridge - Though the Vietnamese motorbike market is becoming saturated, manufacturers still make big profits with 3 million products bought every year. The improved living standards and infrastructure conditions in recent years have led to a sharp increase in the demand for cars. However, motorbikes remain the major transport for Vietnamese because of the reasonable prices and convenience. It is estimated that 45 million motorbikes were registered by the end of 2015, which is nearly a half of the population. According to a report of the Vietnam Association of Motorcycle Manufacturers (VAMM), 2.8 million products were sold in 2014, which represented an 18 percent decrease from the highest peak gained three years ago. Honda, the manufacturer from Japan, holds 70 percent of the market share with 1.91 million motorbikes sold, leaving Yamaha far behind. With 635,000 products sold, Yamaha holds 23.4 percent of the market share. Meanwhile, Piaggio sold 56,000 … [Read more...]

Social News 16/3

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Hoi An International Food Festival opens The Hoi An International Food Festival "Taste the World", the first of its kind, opened at An Hoi sculpture garden on March 14, attracting 12 chefs from 12 countries worldwide. During the week-long event, the chefs will demonstrate their cooking skills at 12 local restaurants, namely Cargo club, Morning Glory, Inflame club, Mango I, Mango II, Rice Drum, Seafood Garden, Vinh Hung, Seedlings, Mangorooms, Tam Tam and Hai café. The participating restaurants will be decorated and themed to the countries of the visiting chefs, who will prepare traditional dishes from their respective countries. The festival, a new tourism product of Hoi An in 2016, is expected to bring the local cuisine to countries and territories worldwide, thereby popularising the city, its land and people. The ancient city of Hoi An in the central province of Quang Nam was a renowned international trade port in the 17th century where ships from Japan, China, and European … [Read more...]

Honda aims to promote vehicle industry in Vietnam

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Honda Vietnam (HVN) will work harder to contribute more to Vietnam ’s vehicle industry, HVN General Director Minoru Kato said. Over the last two decades, Honda has invested over 530 million USD in building three motorbike manufacturing plants and one automobile factory in Vietnam. It contributed over 40 trillion VND (1.78 billion USD) to the State budget. Honda Vietnam officially started its operations in 1996 under a joint venture with the Vietnam Engine and Agricultural Machinery Corporation (VEAM). With three motorbike manufacturing plants with a total annual capacity of 2.5 million units, Honda has so far sold nearly 20 million motorbikes to Vietnamese consumers, accounting for over 10 percent of its motorbike sales across the world. It has developed 12 motorbike models, including some with striking tech features using advanced, environmentally friendly technologies. Along with introducing new motorbikes, HVN also expanded the number of its authorised retailers … [Read more...]

Two automakers to recall nearly 5,000 units over defects

A Honda City model is launched in HCMC. Honda Vietnam and GM Vietnam will recall a total of 4,922 autos due to defective parts - PHOTO: HUNG LE

Hung Le Vietnam Register said it has approved the recall of 4,357 Honda autos assembled in Vietnam, including City, Civic and CR-V models, for checks and replacements of airbag inflators. Cars subject to Honda’s recall starting from tomorrow include Honda City 1.5L AT and 1.5L MT manufactured in 2013-2014 and some units manufactured in 2012; Civic 1.8L 5MT FD1, Civic 1.8L 5AT FD1 and Civic 2.0L 5AT FD2; CR-V 2.4L AT RE3 manufactured in 2012. Honda Vietnam will recall these models to check and repair the defect, which might cause airbags to explode, at all authorized dealers nationwide at no charge. The recall lasts until next January. According to Honda, owners of imported Honda cars can also request airbag checks. The manufacturer is willing to assist customers. Meanwhile, 565 Chevrolet AVEO Klasn1 FYU and AVEO Klas SN4/446 cars manufactured between July 27, 2015 and December 4, 2015 will have their ball joints checked and replaced at GM Vietnam’s authorized … [Read more...]

Scooters gain bigger market share

Yano Takeshi (C), general director of Yamaha Motor Vietnam and chairman of the Vietnam Association of Motorcycle Manufacturers (VAMM), introduces the fi rst Vietnam Motorcycle Show to be organized by VAMM in HCMC in April - PHOTO: QUOC HUNG

Quoc Hung Yano Takeshi, general director of Yamaha Motor Vietnam and chairman of the Vietnam Association of Motorcycle Manufacturers (VAMM), said scooters accounted for 52-53% of the total bike sales volume in Vietnam last year. Takeshi told the Daily about the market share of scooters on the sidelines of a media briefing held in HCMC on Tuesday to introduce the Vietnam Motorcycle Show 2016. He said Yamaha has seen scooter sales rising sharply over the past two years owing to the launch of various new models. The firm’s sales of motorcycles with manual gearboxes were higher than scooters in the past but the ratio was 50:50 last year. Ho Manh Tuan, deputy general director of Honda Vietnam, said the scooter segment is expanding while the motorbike segment tends to shrink. Honda Vietnam now holds 70% of Vietnam’s bike market. Tuan said scooter consumption made up some 53% of the total last year, up nearly 3% year-on-year. The firm’s scooter sales were higher … [Read more...]

Auto sales up 55% last year

Quoc Hung The figure was far beyond the Vietnam Automobile Manufacturers Association’s projection of 210,000 autos made earlier last year, and higher than 180,000 units in 2009 when Vietnam’s auto sales volume peaked. Last year saw sales improving in all segments, with passenger cars rising by 44% year-on-year to nearly 143,400, commercial vehicles by 74% to more than 89,320, and special-purpose vehicles by 105% to almost 12,200. The better performance of the domestic auto market was also contributed by the sales volume of around 71,900 imported completely built-up (CBU) units, increasing 74% against 2014. Of the number of autos sold last year, VAMA members accounted for over 208,560 units, up 56% against 2014. Toyota Vietnam reported sales of roughly 51,250 units including the imported Lexus car, surging 24.4% over 2014. The company’s figure has amounted to around 357,000 in its 20 years of operation in Vietnam. Honda Vietnam delivered over 8,300 autos to … [Read more...]

Contest to build up traffic culture among youths

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PANO – The Vietnam Youth Federation in association with the Honda Vietnam and the National Traffic Safety Committee held the final round and awarding ceremony for the contest "Youths with traffic culture" in Da Nang city on January 11th. The organization panel granted the first prize to Tran Thi Van from Kien Giang province, and five second, 17 third and 300 consolation prizes to the runner-ups. Vice Chairman of the National Traffic Safety Committee Khuat Viet Hung underlined the important role of the information dissemination work for youths, contributing to minimizing traffic accidents. He also urged relevant agencies to continue working with provinces and cities nationwide to launch more contests and campaigns to improve young people's awareness of traffic safety and traffic law observation. Launched in September 2015, the contest received nearly 25,000 entries of young people across the country, an increase of 5,000 against the previous event. Translated by Van Hieu … [Read more...]

Exchanges to learn about traffic safety for children’s smiles to be launched

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The contest is co-organized by the Education and Training Ministry, the National Traffic Safety Committee, and Honda Vietnam Company. The Hai Duong Department of Education and Training (ET) has issued an official document requiring ET divisions to direct primary schools in the province to launch exchanges to learn about traffic safety for children's smiles in the 2015 – 2016 school year. The contest is co-organized by the ET Ministry, the National Traffic Safety Committee, and Honda Vietnam Company. Primary schools will photocopy exam papers and answer sheets for teachers and 3rd – 5th graders having taught and learnt the program "Traffic safety for children's smiles". Honda Vietnam Company will directly send exam questions to the schools. ET divisions will gather and send the schools' exam papers to the ET Department from January 15 – 22. Hai Duong is one of 12 provinces and cities in the country having implemented the teaching of the program "Traffic safety for … [Read more...]

Honda Vietnam aims for higher sales this year

The new 125cc Air Blade of Honda Vietnam is unveiled at a function in HCMC last week - PHOTO: QUOC HUNG

Quoc Hung Minoru Kato, general director of Honda Vietnam, unveiled the sales target at a function held in HCMC last week to introduce the company’s new Air Blade 125cc scooter model. Kato estimated scooters would account for 54% of total sales and motorcycles for the remainder. This is a big change as more motorcycles were sold in previous years. The demand for scooters in urban areas is seen increasing while many people in rural areas still favor motorcycles. Therefore, Honda Vietnam is focusing on producing and developing models of both scooters and motorbikes to meet the needs of local consumers. Kato said Honda Vietnam has been picked by the parent company in Japan as one of the manufacturers of products for export to markets around the globe, including scooters for choosy markets. The reason is that Honda Vietnam can turn out international-standard bikes at competitive prices. The company has cut production costs as it has increased the localization rate of its … [Read more...]

VR asks Honda Vietnam to publicly recall SH scooters with anti-thief error

The Vietnam Registration asked Honda Vietnam to publicly recall all SH scooters with error in the anti-thief system on November 30 (Photo: SGGP)

The Vietnam Registration (VR) yesterday issued its document requiring Honda Vietnam to implement a public campaign to recall all 12,000 SH125i and SH150i scooters with error in the anti-thief alarm system and repair them. According to VR, it has received a written explanation from the company on the anti-thief alarm system of the new version of SH scooters. After scrutinizing related matters, the agency said that the system has not operated in accordance with designed functions announced by the producer. The system has been designed to automatically sound for 10 days after the SH scooter is stolen. However, it has worked only about 10 minutes due to error, which might cause property loss to customers, VR affirmed. Honda Vietnam has violated the regulation on inspection of technical safety, quality and environmental protection in manufacture and assembly of motorcycles. Efforts by the company recently to mitigate issue and prevent from opening a public recall campaign seemed … [Read more...]

Honda Vietnam ordered to recall hi-end scooters for ‘smart key’ error

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Honda SH scooters on sale at a shop in Vietnam. Photo: Huu Danh Safety regulators have ordered Honda Vietnam to recall a large number of scooters under its luxury brand SH, due to an error it the smark key system. Earlier, Honda Vietnam only made private calls to tell buyers to take their vehicles to dealers for repair, local media reported. After receiving complaints from consumers, Vietnam Register, the state agency that oversees vehicle safety, inspected the scooters and demanded a report from the company. A representative of the agency, who requested anonymity, said officials did not accept Honda Vietnam’s "internal handling" of the case. Honda Vietnam has to launch a public campaign to recall SH scooters to fix the error, he said. Earlier, many owners complained that the anti-theft system on the vehicle became inactive within 10 minutes, instead of 10 days as claimed by the company. The error involves more than 12,000 Honda SH125 and SH150 vehicles manufactured from … [Read more...]

Vietnam’s top 10 tax contributors named

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The list of the largest tax contributors in Vietnam last year and a report on the country’s tax environment were released in Hanoi on November 27 by Vietnam Report, which rates businesses and products and services. The Top 10 are Viettel, PetroVietnam Gas, MobiFone, PetroVietnam, Vietinbank, Honda Vietnam, Vinamilk, Samsung Electronics Vietnam, Unilever Vietnam, and Vietcombank. This is the second consecutive year Viettel has topped the list. Four enterprises appeared for the first time: Unilever Vietnam, Samsung Electronics Vietnam, MobiFone, and PetroVietnam. The total tax paid by the 1,000 largest tax contributors (V1000) was VND82.344 trillion ($3.66 billion), a 2.34 per cent increase compared to the previous year and accounting for 10 per cent of State budget revenue. The 100 largest tax contributors contributed over VND50 trillion ($2.2 billion), or 60 per cent of contributions made by the V1000. There were 460 foreign enterprises in the V1000, or 46 per cent, who … [Read more...]

Thailand says ‘highly likely’ it will seek TPP membership

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Thailand's Deputy Prime Minister Somkid Jatusripitak gestures during an interview with Reuters at Government House in Bangkok, Thailand, September 21, 2015. Thailand is "highly likely" to seek membership of the Trans-Pacific Partnership (TPP) but would first need to weigh up the impact of the free-trade accord on its export-led economy, a deputy prime minister said on Friday. The pact currently has 12 members and would slash tariffs in a bloc comprising countries from Canada, Australia and Japan to Mexico, Vietnam and Chile in a trade area of 800 million people worth about 40 percent of the global economy. "Thailand is highly interested in joining TPP ...," Somkid Jatusripitak told a news conference in Tokyo. "Chances are high that Thailand will seek to join TPP." Somkid, the country's economic tsar, said the government was analyzing the impact of joining the trade deal, particularly on sensitive issues like agriculture and pharmaceuticals. "We need to convene specialists and gain … [Read more...]

Honda, Vietnam Register at odds over SMART Key issue

Quoc Hung Honda Vietnam last month announced on its website a part replacement campaign for SH125 and SH150 scooters equipped with Honda SMART Key. The replacement campaign comes after it found an error relating to the smart anti-theft system which is designed to make the alarm automatically go off and sound for 10 days in case the scooter is stolen. But the system works for 10 minutes only. Such a part will be replaced free of charge at Honda’s authorized dealerships nationwide. Honda Vietnam also affirmed the minor error does not put riders at risk and violate national technical standards. Nonetheless, Vietnam Register disagreed and requested Honda Vietnam to recall the affected scooters. Vietnam Register has met representatives of the firm many times to discuss the issue but the manufacturer has insisted on a repair through customer service. The local news site VnExpress on Wednesday quoted Vietnam Register as saying that it will require Honda Vietnam to recall … [Read more...]

Honda Vietnam requested to recall 12,000 scooters

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The Viet Nam Register has requested Honda Viet Nam to recall 12,000 SH scooters, produced from August 19 to October 6 this year, due to an error in the anti-theft system software. The Viet Nam Register explained that the error will increase the risk of losing the asset of the customer. Honda introduced its latest SH scooters with the latest anti-theft system software (Honda SMART Key), which will be sounded automatically for 10 days if the SH scooter is stolen. However, due to an error in software, the system worked only for 10 minutes. Honda Viet Nam has discovered the problem since October 6. The company proposed to fix the problem through customer service, which has been announced on Honda Viet Nam's website since October 26. However, the Viet Nam Register disagreed with this solution and requested Honda Viet Nam to recall all 12,000 SH scooters. A representative of Honda Viet Nam told VnExpress online newspaper that the company will report to the parent company in Japan … [Read more...]