Bangkok, Thailand, April 2, 2014 - Asian Honda Motor Co., Ltd. today announced plans to establish a new wholly-owned power products import and sales subsidiary in Vietnam in order to deliver our products with speed, affordability, high quality and low CO2 emissions for customers in Vietnam where market expansion is expected in the future. Honda submitted an application to the Ho Chi Minh City Peoples' Committee on March 31, 2014 and plans to begin operation of the new company in October of this year.
Through the establishment of the new local subsidiary, to be called Honda Vietnam Power Products Co., Ltd., Honda will build a solid operating base in Vietnam. From this base, Honda will begin sales and marketing operations which will be deeply rooted in the local market and strive to realize the slogan of Honda's power products business - "Helping People Get Things Done." With the sales of power products through its local subsidiary, Honda will better understand the diversifying needs of customers and the local market environment to prepare for future market expansion and strive to further expand power products business in Vietnam.
In 2013, industry-wide sales of power products (such as generators and engines) in Vietnam reached approximately 380,000 units* showing steady expansion along with the increasing mechanization of agriculture in Vietnam. Honda operates power products business in Vietnam, cooperating with a local distributor Hoa Binh Corporation since 1994. Honda has been introducing power products designed especially for emerging markets mostly in Asia, such as the GP Series, 4-stroke general purpose engines targeting the light-use and low-priced engine market.
Once the new local subsidiary becomes operational, Honda will expand and establish a nationwide sales network that includes agricultural machinery sales stores, large-sized retail stores and machinery/equipment manufacturers (OEM makers) and strive to provide products and services which exceed the expectations of customers in Vietnam.
|Establishment:||October 2014 (plan)|
|Capital investment:||4.1 million dollars|
|Investment ratio:||100% Asian Honda Motor Co., Ltd.|
|Head office:||Ho Chi Minh City|
|Business:||Import, wholesales and aftersales service of power products|
|Employment:||Approximately 30 associates (plan)|