Honda Begins Vehicle Operations in Vietnam


Honda Begins Vehicle Operations in Vietnam

27th August, 2006

Honda Vietnam Co., Ltd. (HVN), Honda’s Vietnamese subsidiary, has opened a new motor vehicle plant in the suburbs of Hanoi in Vinh Phuc Province. The opening of the plant also sees the beginning of Honda motor vehicle sales in Vietnam.

The new plant has an annual production capacity of 10,000 units. In addition to welding, painting and assembly of complete vehicles, engine assembly will also be conducted at the plant, a first for an automobile plant in Vietnam. By 2010, the cumulative investment for the automobile operation is expected to reach approximately US$60 million, including the plant and the new sales network. The automobile operation is expected to provide direct employment of approximately 250 new associates at HVN, with an expected total of more than 700 new jobs including dealers and parts suppliers.

About 250 guests, including the vice ministers of the Planning and Investment Ministry and the Ministry of Industry of Vietnam along with news media, were invited to the new Civic press conference held in Hanoi last week, along with Honda President & CEO Takeo Fukui. HVN has begun automobile sales with the Civic 4-door sedan, available with either a 1.8-litre or 2.0-litre engine, both featuring i-VTEC technologies. HVN plans monthly sales of about 300 units.

Honda automobile sales will begin at four dealers that have been established in the largest cities (two in Hanoi and two in Ho Chi Minh City), with a plan for further expansion in line with increased demand. Each dealer has a spacious showroom and service operation.

Since beginning motorcycle production in December 1997, HVN has offered excellent convenience and value to the customers in Vietnam through its motorcycle products. Through the production and sales of the new Civic, which has proven popular in many countries around the world, Honda hopes to offer excellent new value to Vietnamese customers.

“By deepening the ties cultivated through our motorcycle operations with customers in Vietnam, we were able to enter the automobile market with its high potential, a major step forward for us at Honda. Through our products manufactured at the new automobile plant in Vietnam, we look forward to offering world-class quality and state-of-the-art technologies to our Vietnamese customers.” said Takeo Fukui, president & CEO of Honda Motor Co., Ltd.

Honda Australia has no plans to import the Civic sedan from Vietnam.

Honda Vietnam Co., Ltd.

Establishment: March 1996
Capital investment: US$62.90 million
Capitalisation ratio: 42% Honda Motor Co., Ltd.
  28% Asian Honda Motor Co., Ltd.
  30% VEAM Corporation
  (Vietnam Engine & Agricultural Machinery Corporation)
Representative: Hiroaki Funami, President
Location: Suburbs of Hanoi, Vinh Phuc Province
Employment: 3,000 associates (as of the end of July 2006)

Motorcycle Operations
Production start: December 1997
Production capacity: 860,000 units/year
Main models produced/sold: Wave ?, Future NEO, Super Dream, etc.
Sales results for 2005: 617,000 units (20% increase from the previous year)
Dealer network: 260 dealers

Motor Vehicle Operations
Production start: July 2006
Sales start: August 2006
Production capacity: 10,000 units/year
Production model: Civic (Sedan)
Dealer network: 4 dealers (2 in Hanoi and 2 in Ho Chi Minh City)

Other Honda news: here.

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