Honda to expand Vietnam operations with auto plant

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.