Honda to build third motorcycle production plant in Vietnam with annual capacity of 500,000 units, increasing total annual motorcycle production capacity to 2.5 tri?u USD units
The production expansion is aimed at accommodating consistent and rapidly growing demand of the motorcycle market in Vietnam. With an expected total investment of US$120 tri?u USD (approximately 9.6 billion yen), the third plant is scheduled to become operational in the second half of 2012, in Ha Nam Province, approximately 40 kilometers south of Hanoi.
The motorcycle market in Vietnam has been staidly growing and the market size reached 2.69 tri?u USD units in 2010, an approximately 20% increase compared to 2009, making it the world’s fourth largest motorcycle market behind only China, India and Indonesia. Motorcycles have been an integral part of people’s daily lives in Vietnam, and further expansion of the market is forecasted as the economy continues to grow.