Motorbike makers stay buoyant

In contrast to their car counterparts, motorbike manufactures remain optimistic about the future in Viet Nam.

Demand for motorbikes in the country has continued to grow healthily in the past few years. In 2007, 3.26 million new motorbikes were registered, up from the 2.5 million registered in 2006 and 2.1 million registered in 2005.

The motorbike will continue to be the most important commodity for many Vietnamese consumers until 2020, said Ngo Van Tru, deputy director of the Ministry of Industry and Trade’s Department of Heavy Industry.

Foreign motorbike manufacturers, which have a greater than 60% market share in Viet Nam, enjoy stable growth in sales despite the country’s current general economic instability.

For example, demand for Honda’s popular Air Blade motorbike is as strong now as it was a year ago.

Meanwhile, with a lower market share, domestic motorbike manufactuers - such as Sunfat and Tien Loc -are concentrating on developig their brand profiles, new desgns and their material production systems, based on expected future demand.

At the Auto Expo and Auto Petro internaional trade shows, many new foreign companies, such as Solona, Jockey SR, Wheatstone, Speed1, Vento and Rebellian, exhibited for the first time, indicating the attractiveness of the Vietnamese market.

Viet Nams motorbike industry has drawnin VND9 trillion (US$546 milion) in investment capital so fr this year, of which two thirds is foreign direct investment.

The Industry Policies and Strategies Research nstitute reports that the global motorbike market, of which developing countries are the largest consumers and producers, has an annual growth rate of 5-6%.

Current global output of motorbikes is 43 million units per year, of which Asia accounts for 87%.

The success of the motorbike manufacturers has been shared by companies producing accessories and parts for the bikes and also motorbike importers.

Nguyen Hoang Cung, chairman of Davina Lubricant Joint Stock Co, said his accessories and parts import company grew by 30% the last year.

Viet Nam’s motorbike industry plans to meet 90% of domestic demand for motorbikes, accessories and parts by 2010, when it expects export revenues of $300 million. This figure is forecast to rise to $500 million by 2015 and to around $1 billion by 2020. (VNS)