Honda to expand Vietnam operations with auto plant
Honda Vietnam Co. Ltd, Honda's motorcycle
production and sales joint venture in Vietnam, disclosed that it would build a new automobile
manufacturing facility at its motorcycle plant site after receiving an official go-ahead from the Vietnamese government.
The new factory, which would begin
production by mid-2006, will have an annual
production capacity of 10'000 units. Honda expects to invest $60 million in the plant by 2010.
Vietnam's automobile market reached 40'000 units in 2004 and has been growing rapidly over the past few years. Honda expects further growth in Vietnam's automobile market as the country's economy continues to expand.
At the same time, the motorcycle market in Vietnam ranks as the third largest among ASEAN (Association of South East Asian Nations) countries after
Thailand and
Indonesia.