Trade deal hurting local auto makers

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The Vietnam Association of Mechanical Industry (VAMI) has requested the Prime Minister and the Ministry of Finance to adjust the import tax imposed on complete built up (CBU) trucks. This has been requested so the revised tax is more in keeping with tax levied on trucks, which are locally-assembled with imported parts that are complete knock down (CKD). The proposal was made after VAMI members evaluated the import tax imposed on CBU trucks and the current tariff regulated under the finance ministry's circular, which is an implementation of the ASEAN–China Free Trade Agreement (ACFTA) for the 2015 to 2018 period. VAMI said the ministry had allowed a number of imported CBU trucks the kind of preferential tax rate, which is unfair for domestic manufacturers who have been producing and assembling trucks with CKD parts. It added that when importing CKD parts, besides import tax, domestic firms are also burdened with many other costs, such as investment capital plugged into … [Read more...]

Monthly auto sales fall dramatically

Cutomers view an imported Mercedes S-Class car at a showroom of Mercedes Benz Vietnam (Photo: VNS/VNA) Automobile sales reached 12,329 units in February, a 38 percent drop from January, reported the Vietnam Automobile Manufacturers’ Association (VAMA). Despite the plunge, the figure still represented an annual leap of 69 percent. More than 7,900 of the cars sold were assembled in Vietnam, down 41 percent, while another 4,400 were foreign imports, down 32 percent, VAMA said. In February, the Truong Hai Auto Corporation led car sales with 2,965 sales, followed by Toyota Motor Vietnam (2,868 units), Ford Vietnam (925 units), Honda Vietnam (505 units), and GM Vietnam (419 units). Two-month automobile sales soared 76 percent from the same period in 2014. The sales of domestically assembled and imported units shot up 73 percent and 111 percent annually, respectively.-VNA … [Read more...]

E5 RON 95 petrol not yet available in Vietnam

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VietNamNet Bridge – The biofuel E5 (ethanol 5 percent) RON 95, used in next-generation vehicles, is still not available in Vietnam, while E5 RON 92 is being sold at hundreds of filling stations nationwide. E5 RON 92 was first available at stations in December 2014, under a national program on promoting biofuel for motor vehicles. Petrolimex, which holds 60 percent of the domestic petrol distribution market, and Saigon Petro and PVOil have confirmed they are selling only E5 RON 92. Distributors in HCM City said that customers have asked for E5 RON 95 for high-end scooters, such as Honda SH and Vespa Primavera/Sprint. Meanwhile, salesmen at filling stations of Comeco and SFC said taxi drivers do not want to shift to E5 RON 92 because they have been using A95 for a long time. Petroleum distributors can mix E5 RON 92 and E5 RON 95. Binh Son Petrochemistry and Refinery Company (BSR) said it could ensure a stable supply of both A92 and A95 petrol, but it has only launched E5 … [Read more...]

Honda to double Vietnam bike exports to 100,000 units

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Japan's automaker giant Honda Motor Co. has targeted to double its made-in-Vietnam bike exports this year in an ambitious plan to become the biggest market share holder for motorbikes in more Asian countries, a Japanese business magazine reported recently. Honda Motor will export 100,000 motorbikes manufactured in Vietnam in 2015 as the company is fortifying its presence in Myanmar, Laos and other developing Southeast Asian countries, according to Nikkei Asian Review. The Tokyo-based automaker is currently the marker leader in Vietnam, Thailand and Indonesia. The company also has plans to boost demand to replace their motorbikes among Vietnamese consumers by introducing higher-end models, Nikkei Asian Review reported. Honda’s made-in-Vietnam 50cc scooters are being exported to Japan, whereas those with 100cc and larger engines are shipped to Europe and other places. Honda exported some 40,000 bikes from Vietnam in 2014. In November 2014, Honda Vietnam inaugurated its third … [Read more...]

Honda to double Vietnam bike exports to 100,000 units: report

Honda Motor will export 100,000 motorbikes manufactured in Vietnam in 2015 as the company is fortifying its presence in Myanmar, Laos and other developing Southeast Asian countries, according to

Japan's automaker giant Honda Motor Co. has targeted to double its made-in-Vietnam bike exports this year in an ambitious plan to become the biggest market share holder for motorbikes in more Asian countries, a Japanese business magazine reported Friday. Nikkei Asian Review. The Tokyo-based automaker is currently the marker leader in Vietnam, Thailand and Indonesia. The company also has plans to boost demand to replace their motorbikes among Vietnamese consumers by introducing higher-end models, Nikkei Asian Review reported. Honda’s made-in-Vietnam 50cc scooters are being exported to Japan, whereas those with 100cc and larger engines are shipped to Europe and other places. Honda exported some 40,000 bikes from Vietnam in 2014. In November 2014, Honda Vietnam inaugurated its third motorcycle production plant in the Southeast Asian country in the northern province of Ha Nam, some 40km from Hanoi. The US$120 million facility has an annual production capacity of 500,000 … [Read more...]

Number of registered bikes exceeds 2020 vision

A motorcycle traffic jam is seen in this file photo. The number of registered motorcycles had surpassed 43 million as of last December nationwide - PHOTO: TL

Hung Le The number was unveiled at the signing ceremony for a cooperation agreement on traffic safety between the Vietnam Association of Motorcycle Manufacturers (VAMM) and the National Traffic Safety Committee on Wednesday. Compared to the master zoning plan approved by the Government in February 2013, the number of registered motorcycles has beaten the target of around 36 million units by 2020. However, there have been no statistics on the exact number of motorcycles on the nation’s roads. The master zoning plan also sets a limit to the volume of motorcycles by administrative, economic and technical measures, and this means of transportation will be mainly used in rural areas where public transportation is not available. In the past years, Vietnam has become a lucrative market for many motorcycle manufacturers while many big cities worldwide have started to restrict motorcycles. However, motorcycle sales have declined in recent years. According to Vietnam Register, … [Read more...]

Honda Vietnam achieves new record on auto sale in 2014

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Illustrative image (Source: HVN) Honda Vietnam (HVN) sold as many as 6,492 automobiles in 2014, up 41 percent from 2013, according to D irector of the Automobile Division at Honda Vietnam Tomohiro Maruno. The figure is the highest number of annual auto sales in Vietnam since HVN was established, bringing the company to the fourth highest touring car sales rate among leading auto businesses. From the outset of 2014 , HVN boosted sales by offering promotional programmes and launching catalogue products such as new generations of the City and Accord as well as new versions of the Civic and CR-V. Accordingly, the fourth generation of Honda City and CR-V 2015 were the two best selling brands of HVN in 2014. With 2,944 cars sold, sales of Honda City’s in 2014 were more than double those of 2013, with an additional 2,918 CR-V’s sold, up 34 percent from 2013. In December alone, consumers bought a total of 837 vehicles, an 18 percent increase from the same period last … [Read more...]

Electronic giants pioneer Vietnam’s support industry

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(VOV) - Foreign direct investment has been the catalyst for economic growth in Vietnam over recent years, and capital investment by foreign enterprises continues to set the pace for development of the nation’s support industries. Intel is believed to have started the second wave of foreign investment in Vietnam when it built a US$1 billion chip manufacturing facility in Ho Chi Minh City back in 2010 but it was Samsung who sealed the deal. The Republic of Korean technology giant has methodically moved its manufacturing base to Vietnam away from China and currently contributes up to nearly 20% of the total export turnover of Vietnam. In recent years, international giants such as Samsung, Intel, Canon, Panasonic, Fujitsu, LG, Bosch and Nokia have followed suit pumping billions of US dollars into the Vietnamese electronics industry. Samsung has injected billions of US dollars into smartphone production plants in the country, principally in the Hanoi metropolitan and surrounding … [Read more...]

Honda considers relocating Vietnam bike production back to Japan

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Japanese automaker giant Honda Motor Co. is weighing the possibility of relocating part of its motorcycle production in Vietnam back home as Japan’s domestic manufacturing costs have fallen over the weak yen, a representative with its Vietnamese unit has said. The production and assembly lines of motorbikes with under 50cc engines could likely be relocated to Kumamoto Prefecture this year, according to the Honda Vietnam representative. Details for the plan could not be disclosed immediately, the source added. It was reported earlier this year that the production lines will be transferred back to Japan to meet domestic demand. Honda’s annual motorbike sales in the Japanese market are around 200,000 units, half of which are those with under 50cc engines. With production costs in Japan soaring, the company previously had to move part of its production to Vietnam to save costs. But it is now costlier to import made-in-Vietnam motorbikes than make them … [Read more...]

Breakfast @ Tuoi Tre News – January 14

Politics    -- The Vietnamese government has just released a decree on implementing democracy in state administrative agencies.    Society

Enjoy your breakfast while reading these news items in brief on Tuoi Tre News today, January 14, 2015 -- Several political leaders including Deputy Prime Minister Nguyen Xuan Phuc on Tuesday visited Nguyen Ba Thanh, chief of the Party Central Committee’s Commission for Internal Affairs, at Da Nang Hospital in the central city of Da Nang, where he is receiving treatment for his myelodysplastic syndrome. Thanh is now alert and can eat soup, porridge and some other easily digestible food. -- The Vietnam Airport Traffic Management (VATM) on Tuesday inaugurated the Hanoi Air Traffic Control Center. The three-year construction project cost VND750 billion (US$34.95 million). -- About 4.5 percent of Hanoi people, the majority of whom are young, were unemployed in 2014, the capital’s Department of Labor, War Invalids, and Social Affairs told a Tuesday meeting. -- Le Quy Vuong, Deputy Minister of Public Security, said during an online meeting on traffic safety in Hanoi on … [Read more...]

Motorbike manufacturers increase export

Domestic vehicle production output reached 5 million units this year, nearly doubling the market demand. However, companies still expanded their scale with expectation to turn Vietnam into one of the largest motorbike manufacturing countries in the world. Though motorcycle manufacturers’ turnover decreased drastically recently, manufacturing capabilities increased sharply. As per a statistic, the companies have produced nearly 5 million a year. Furthermore, many manufacturers have continued expanding scale. Honda Vietnam has recently put into operation of the third motorbike factory with capacity of 500,000 units a year. Similarly, Yamaha has also spent nearly US$30 million on its factory to raise its manufacturing capability to 1.5 million vehicles per year. Along with expansion of scale, the companies have introduced more new vehicles to promote local consumption. In addition, they have also raised export of vehicles and vehicle parts. For instance, since the second quarter … [Read more...]

Ten outstanding Vietnamese students receive Honda Y-E-S Award

At the awards ceremony   NDO – Ten Honda motorbikes and total prize money of US$30,000 were presented to ten outstanding Vietnamese students – the winners of the 2014 Honda Y-E-S Award – at a ceremony in Hanoi on December 6.

The honourees include two from the Hanoi University of Science and Technology; five from the Technology University under the Hanoi National University; two from the University of Natural Sciences under the Hanoi National University; and one from the Ho Chi Minh City University of Science and Technology. The prize winners were the best students selected among 114 profiles of those with high academic results and outstanding achievements in scientific studies sent to the Award’s office since it was launched in April this year. … [Read more...]

770 bikes presented to underprivileged children through “Real life journey” initiative

Photo: Thanh Ngan

(CPV) - The National Fund for Vietnamese Children and AIA Life Insurance (Vietnam) Limited Company on December 4th co-organized the summary event of "Real life journey" initiative in Ho Chi Minh city. So far, as many as 770 bikes (worth more than VND1.3 billion) have been presented to underprivileged children in 22 provinces and cities nationwide after one year of implementation. At the ceremony, organizers handed over 80 bikes (each worth VND1.7 million) and gifts to needy children in the city. On this occasion, "Together with children to school" program (Initiated by Vice State President Nguyen Thi Doan in September, 2012) presented some of 110 scholarships (VND3 million each) and 10 portions of school-sponsored fee (VND5 million each) to students, increasing the total value of scholarships and bikes supported to children in the city to VND516 million. The organizing board also received valuable contributions equivalent to 200 bikes from benefactors, including 50 bikes from … [Read more...]

Motorcycle companies struggle to stay a float

(Photo for illustration). Source: vneconomy.vn

Motorcycles manufacturers in Vietnam are trying to survive in the face of a prolonged market slump by introducing more budget units with higher domestic content. The Vietnam Association of Motorcycle Manufacturers (VAMM) revealed that from April to September, all of its five members sold a combined 1.25 million units, a seven-percent year-on-year decline. However, September witnessed a slight increase in sales due to students' higher demand for new motorcycles during enrolment. August marked the 15th consecutive month of decline in the volume of motorcycle sales. However, manufacturers remained optimistic and even introduced a number of new models in recent months. … [Read more...]

Honda launches $120m motorbike factory

HA NOI (VNS) - Honda Vietnam on Monday inaugurated a motorbike manufacturing factory in the northern Ha Nam Province. The US$120-million factory, the third of its kind in Viet Nam, is located in the Dong Van 2 Industrial Park and can produce 500,000 motorbikes per year. The factory has workshops for assembling engines, complete motorbike casting and processing parts, as well as painting. In the first stage, the factory, with nearly 1,300 workers, will manufacture 1,000 motorbikes per day. Japan has 2,410 projects with a total investment capital of US$36.3 billion in Viet Nam, topping the list of 101 countries and territories that have been investing directly in the country. - VNS … [Read more...]

Honda Vietnam opens third plant

The ribbon is cut to open Honda’s third motorcycle factory - PHOTO: HONDA VIETNAM

Hung Le Having an investment of some US$120 million, the new factory covering an area of over 270,000 square meters has total designed output of 500,000 motorcycles per year. The launch of this factory helps raise HVN's annual manufacturing capacity to 2.5 million units. … [Read more...]

Honda Vietnam inaugurates 3rd motorbike plant at cost of $120mn

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The number of Honda motorcycle production plants in Vietnam has risen to three with the latest facility officially opening in a northern province on Monday. The new US$120 million plant is situated in the Dong Van 2 Industrial Park in Ha Nam Province, some 40km from Hanoi, Honda Vietnam Co. Ltd., the motorcycle and automobile sales and production joint venture of the Japanese vehicle maker in the Southeast Asian nation, said in a press release. … [Read more...]