Vietnam has set a target to become a major motorcycle manufacturer in the region by 2015. The industry's development strategy for the period 2006-2015 and until 2020 has been approved by the Prime Minister.
Motorcycle is a popular means of transportation for a country with more than 80 million people like Vietnam. This is a huge potential for the industry to develop.
Ngo Van Tru, deputy director of the Department for Engineering-Metallurgy and Chemistry, Ministry of Trade and Industry said this industry is determined to make the plan become a reality.
With the target, by 2015 the country will be able to meet 100% of the demand from people in the rural area and 90% of urban areas in term of motorcycles.
For scooters, Vietnam will try to have 60% of the domestic market share.
In addition, the industry will also consider the production of the 125 cm3 motorcycles, high quality scooters and sport motorcycles and others for the domestic market and for export.
According to the Ministry of Planning and Investment, there are more than 60 enterprises engaged in the industry, of which some 50 of them are directly involved in production while the remainders are assembling.
However only some 10 out of the 50 enterprises are strong enough to compete in the tough market as their production is in small scale with an average from 20,000 – 50,000 motorcycles per year.
It is estimated between now and 2015, each year about 2-2.2 million new motorcycles will be added. And the figure will reduce to about 1.8 million between the period from 2016-2020.
These figures bespeak of the great potential for the industry to grow to meet the set target.
To secure a firm foothold in the "backyard", it is imperative for the motorcycle manufacturers to adopt a joint strategy to improve their competitive edge, particularly in the production of spare parts.
Pham Thi Thu Hang, director of the Center for Promoting Small and Medium Enterprises, from the Vietnam Chamber of Commerce and Industry suggested that each enterprise should take initiatives to diversify their products.
An indispensable unit in a production establishment is the R and D department. The department has a very important role in helping the enterprise establish its own brand name among the clients through diverse and attractive designs of the products.
Nguyen Anh Nam, director of the project to formulate a master plan for the motorcycle industry laid emphases on the importance of not making prototype products by several enterprises.
He said it was high time for Vietnamese enterprises to have marketing strategies to expand their market beyond the country's territory.
But in order to do that, the enterprise should do the SWORT analysis (Strengths, weaknesses, opportunities and threats).
In his opinion, the most lucrative market for Vietnam is the Western Africa, Western Asia and Latin America.
For enterprises with well established trade marks in the domestic market, it is also important for them to cooperate with foreign enterprises to discuss the possibility of becoming a part of their production chains.
Under the master plan for the development of the motorcycle industry until 2015, the government has asked the enterprise to gather and talk about their cooperation plans in order to utilize their technology they have and finally cut down the production cost.
The government is committed to creating a data base for the enterprises to refer to during their production plan.
The government also pledges to further support the enterprises wishing to conduct research on energy development, particularly motorcycles driven by clean energy.
In addition, the government is also willing to support the enterprises to expand their production including designing, pilot production of new motorcycle or training activities and technology transfer.
Motorcycle is a popular means of transportation for a country with more than 80 million people like Vietnam. This is a huge potential for the industry to develop.
Ngo Van Tru, deputy director of the Department for Engineering-Metallurgy and Chemistry, Ministry of Trade and Industry said this industry is determined to make the plan become a reality.
With the target, by 2015 the country will be able to meet 100% of the demand from people in the rural area and 90% of urban areas in term of motorcycles.
For scooters, Vietnam will try to have 60% of the domestic market share.
In addition, the industry will also consider the production of the 125 cm3 motorcycles, high quality scooters and sport motorcycles and others for the domestic market and for export.
According to the Ministry of Planning and Investment, there are more than 60 enterprises engaged in the industry, of which some 50 of them are directly involved in production while the remainders are assembling.
However only some 10 out of the 50 enterprises are strong enough to compete in the tough market as their production is in small scale with an average from 20,000 – 50,000 motorcycles per year.
It is estimated between now and 2015, each year about 2-2.2 million new motorcycles will be added. And the figure will reduce to about 1.8 million between the period from 2016-2020.
These figures bespeak of the great potential for the industry to grow to meet the set target.
To secure a firm foothold in the "backyard", it is imperative for the motorcycle manufacturers to adopt a joint strategy to improve their competitive edge, particularly in the production of spare parts.
Pham Thi Thu Hang, director of the Center for Promoting Small and Medium Enterprises, from the Vietnam Chamber of Commerce and Industry suggested that each enterprise should take initiatives to diversify their products.
An indispensable unit in a production establishment is the R and D department. The department has a very important role in helping the enterprise establish its own brand name among the clients through diverse and attractive designs of the products.
Nguyen Anh Nam, director of the project to formulate a master plan for the motorcycle industry laid emphases on the importance of not making prototype products by several enterprises.
He said it was high time for Vietnamese enterprises to have marketing strategies to expand their market beyond the country's territory.
But in order to do that, the enterprise should do the SWORT analysis (Strengths, weaknesses, opportunities and threats).
In his opinion, the most lucrative market for Vietnam is the Western Africa, Western Asia and Latin America.
For enterprises with well established trade marks in the domestic market, it is also important for them to cooperate with foreign enterprises to discuss the possibility of becoming a part of their production chains.
Under the master plan for the development of the motorcycle industry until 2015, the government has asked the enterprise to gather and talk about their cooperation plans in order to utilize their technology they have and finally cut down the production cost.
The government is committed to creating a data base for the enterprises to refer to during their production plan.
The government also pledges to further support the enterprises wishing to conduct research on energy development, particularly motorcycles driven by clean energy.
In addition, the government is also willing to support the enterprises to expand their production including designing, pilot production of new motorcycle or training activities and technology transfer.
Source: VOV News

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