Honda-The Power of Dreams
Honda to Build Second Motorcycle Plant in Vietnam

Vietnam, July 18, 2007–Honda Vietnam Co., Ltd. (HVN, President: Koji Onishi), a Honda subsidiary in Vietnam, announced it has begun construction of its second motorcycle plant in order to continue responding to the diversifying needs of customers and increasing overall demand for motorcycles in Vietnam.

Rendu of HVN motorcycle second plant

The second plant will be located adjacent to the existing motorcycle plant in Vinh Phuc Province, the suburbs of Hanoi. With total investment of approximately US$65 million, the new plant is scheduled to begin mass production in the latter half of 2008, with initial annual production capacity of 500,000 units and employment of approximately 1,400 associates. Combined with the existing plant’s one million units in annual production capacity, Honda’s annual motorcycle production capacity in Vietnam will be expanded to 1.5 million units.

Supported by the country’s strong economy, the motorcycle market in Vietnam last year reached more than 2.3 million units (+31% vs. 2005) and is expected to continue growing steadily in the future.  Ever since it began motorcycle production in 1997, HVN has been trying to increase customers’ joy in Vietnam through its commitment to provide convenient and attractive products. In 2006, HVN achieved all-time record sales of 851,000 units (up 27% vs. 2005). HVN’s cumulative motorcycle production reached 3 million units in September 2006. In April 2007, HVN also started production and sales of the Future Neo FI, with environmentally responsible PGM-FI (Programmed fuel injection) for the first time in Vietnam.

With increased production capacity, Honda will continue to make an effort to be a company that society wants to exist in Vietnam by enhancing traffic safety promotion activity in addition to continued aggressive introduction of products with advanced environmental and safety technology.

Motorcycle Plants
  Existing Plant New Second Plant
Location Vinh Phuc Province
Employment Approximately 3,600 associates
(as of June, 2007)
Approximately 1,400 associates
Production Capacity 1 million units annually 500,000 units annually
Lot Site 200,000 m2 280,000 m2
Production Models Wave α, Future Neo, etc. Mainly scooter-types

* Honda Vietnam Co., Ltd. entered into automobile business in August 2006, and is currently producing Civic at its automobile production plant with annual production capacity of 10,000 units

About Honda Vietnam Co., Ltd. (HVN)
Establishment: March 1996

Capital: US$62.9 million 

Capitalization ratio: 42% Honda Motor Co., Ltd.
28% Asian Honda Motor Co., Ltd.
30% VEAM Corporation
(Vietnam Engine & Agricultural Machinery Corporation)

Representative: President: Koji Onishi

Business Areas: Production and sales of motorcycles and automobiles