VietNamNet Bridge – Most of the world’s biggest motorbike manufacturers have come to Vietnam to set up their main production bases, which have been providing products to many markets in the world.

Locally made content ratio in the rise

The motorbikes with 90-95 percent of contents made in Vietnam have been exported to the world market. The localization ratio in the products has been increasing rapidly in recent years.

Honda Vietnam has announced that the locally made content ratio in its products is up to 90-95 percent. In 2012, the manufacturer marketed SH 125i and SH 150i with the declared localization ratio of 93 percent and eSP engine.

The localization ratio of 90 percent has been reported for the other models like Lead 125cc, Shi 125/150cc. Meanwhile, 95 percent of motorbike parts for Air Blade is made in Vietnam, and the ratio is 96 percent for SH Mode.

Yamaha Vietnam, a redoubtable rival of Honda Vietnam, has also been localizing a lot of its models to be consumed domestically and exported.

A senior executive of Yamaha Vietnam said the average localization ratio of its products is about 80 percent. The figure could be higher, depending on the progress made by motorbike part producers. At present, the engine casting, chassis manufacturing and electronics are still made overseas.

In 2012, Piaggio Vietnam put the engine factory in Vinh Phuc province into operation. The factory can churn out 200,000-300,000 products every year.

The manufacturer said a part of the engines from the factory would serve the motorbike production in Vietnam, while the remaining would be used to make products for export to the markets in Asia – Pacific.

Piaggio Vietnam now can make 85 percent of the content of 3V engine sets, the latest generation engine. According to Costantino Sambuy, CEO of Piaggio Vietnam, the other 15 percent is imported from Italia and some South East Asian countries.

The CEO, at an event held recently, affirmed that the high localization ratio of the engine at 85 percent has allows to churn out the products with low production costs.

Piaggio Vietnam’s products have been exported to Indonesia, the Philippines and Thailand. Meanwhile, Honda Vietnam has exported Honda SH Mode, Honda Lead 125cc to Asian countries. Yamaha’s Sirius FI and Nouvo SX Fi have been present in South East Asian markets.

Vietnam turned into motorbike production bases

Roberto Colaninno, President and CEO of Piaggio Group, when announcing the establishment of the research and development center in Vinh Phuc province, stressed that this is the first Piaggio’s center set up in Asia Pacific, which shows the importance of the market in the eyes of the motorbike manufacturer.

It is obvious that the world’s big manufacturers have been eyeing Vietnam not only as a consumption market, but also an ideal place for them to set up production bases, from which products are provided to all over the world.

In order to turn this into reality and optimize the profits, the manufacturers need to have more motorbike parts to be made in Vietnam.

Hoang Ha from Yamaha Vietnam has noted that Vietnamese enterprises have recently been trying to upgrade the production lines and the production capacity, thus allowing to make the products more competitive in prices. However, he said Vietnam’s supporting industries still far lag behind the other regional countries including Thailand or Indonesia.

SGTT