Hanoi, Vietnam, March 17, 2005 --- Honda Vietnam Co., Ltd. (HVN), Honda’s motorcycle production and sales joint venture in Vietnam, today announced that it has been granted an additional license for automobile production and sales from the Government of Vietnam.
After receiving the official license, HVN will build a new automobile manufacturing facility within the current plant site to begin its automobile business. Annual production capacity at the new factory will be 10,000 units, with production targeted to begin by mid-2006. By 2010, the investment is expected to reach approximately US$60 million. The Honda Civic will be the first model to be produced in Vietnam as this model is already very popular in Asia. HVN will also promote establishment of a new automobile dealer network.
The automobile market in Vietnam has been growing rapidly over the past few years, and reached 40,000 units in 2004. As the economy of Vietnam continues to grow, Honda expects further growth of the automobile market in Vietnam. At the same time, the motorcycle market in Vietnam has become the third largest in among ASEAN countries after Thailand and Indonesia. HVN began motorcycle production in December 1997, HVN’s cumulative motorcycle sales has reached approximately 1.84 million units and last year’s motorcycle sales in Vietnam reached 500,000 units. Local parts content of HVN-built motorcycles now exceeds 80%. By leveraging its existing supply base for motorcycle parts in Vietnam, HVN aims to realize a high local content for automobiles as well.
Honda Vietnam Co., Ltd.
|Capital||:||US$45.40 million (to be increased to US$62.90 million)|
|Capitalization ratio||:||42% Honda Motor Co., Ltd.
28% Asian Honda Motor Co., Ltd.
30% VEAM Corporation
(Vietnam Engine & Agricultural Machinery Corporation)
|Representative||:||Hiroshi Sekiguchi, President|
|Location||:||Suburbs of Hanoi, Vinh Phuc Province|
|Production started||:||Dec. 1997|
|Production capacity||:||560,000 units/year (two shifts)|
|Production models||:||Wave α , Future II, Super Dream etc.|
|<New Automobile Plant> Planned|
|Production capacity||:||10,000 units/year|