Ha Nam, Vietnam —- Honda Vietnam Co. Ltd officially inaugurates the third motorcycle production plant in Ha Nam Province. Participating in the ceremony are Your Excellency Hoang Trung Hai – Vice Prime Minister of The Socialist Republic of Vietnam and representatives of governmental and local authorities.
The third motorcycle production plant is located in an area of 270,000 m2 at Dong Van II Industrial Zone in Ha Nam Province, which is 40 km to the South from Hanoi. This plant has an initial capital investment of about US$ 120 million with annual production capacity of 500,000 units.
The third plant is designed to achieve environmental and human friendly target. Accordingly, this plant is built based on the concept of taking full advantage of natural energy resources in the most effective ways, including: Wind, Natural Light and Water resources. The environment and space within the plant are always kept ventilated and full of light, thanks to natural wind and light usage. That helps reduce the heat which is very popular in industrial factories and at the same time also creates a more comfortable environment for associates. Moreover, the utilisation of wind, natural light and water will bring high economic efficiency, saving significant environmental resources, such as cutting power consumption cost (thanks to natural light using), reusing rainwater for internal equipments, etc. Besides, the entire production procedure of the third plant will fully meet the most demanding environmental standards in Vietnam and in the world. All of these elements are to create a clean and green environment for the third plant.
All the most advanced technologies of Honda in motorcycle manufacturing field have been applied in the production system in the third plant, in order to make this plant become one of the most advanced in technology and efficient plants in the world.
The plant includes 7 workshops: assembling workshop for engine clusters, assembling workshop for finished-products, casting workshop for engine parts, machining workshop for engine parts, plastic object workshop, painting workshop and welding workshop. All of these workshops are equipped with modern machinery to produce high quality and friendly-environment products. This plant will be operated under ISO 9001 quality management and ISO 14001 environment management standards.
Before inaugurating for mass production, Honda Vietnam has started to produce motorcycle parts in the third plant since March 2014 with a production capacity of 1,450 units per day.
In the first phase, this plant will manufacture 1,000 motorcycles/day, most of which are scooters, with the number of directly working labour is nearly 1,300 people and thousands of labour working among the whole supplier chains.
Since the start of production in 1997 and sale of first products in February 1998, Honda Vietnam’s accumulated motorcycle production has reached more than 15 million units. The estimated market share of Honda Vietnam in 2014 is about 70 per cent up to now(*).
By having the third motorcycle plant going into mass production, Honda Vietnam will continue enhancing product lineup to not only fulfill the increasingly diversifying of customers needs in Vietnam, but at the same time also push up exports to other countries in the world.
(*) Motorcycle market share in Vietnam consists of 5 FDIs
(Honda Vietnam Co. Ltd, Yamaha Motor Vietnam Co. Ltd, Vietnam Suzuki Corporation, SYM Vietnam and Piaggio Vietnam Co. Ltd)
Information about 3rd MC factory
Location: Ha Nam Province (40 km to the South from Hanoi)
Investment capital US$ 120 million
Production capacity 500,000 units/year
Number of labour About 1,400 people (direct and in direct)
Workshop area 51,000 m2
Campus area 270,000 m2
Production model Scooters
Information about Honda Vietnam
Establishment March 1996
Location Head office (plants): Vinh Phuc Province
Representative offices in HN and HCM
Capital US$ 62.9 million
Capitalisation ratio 42% Honda Motor Co., Ltd.
28% Asian Honda Motor Co., Ltd.
30% VEAM Corporation
(Vietnam Engine Agricultural Machinery Corporation)
Representative Minoru Kato – General Director
Business Production, assembly, sales, distribution of MC and AM
Start of production Motorcycle: December 1997
Automobile: July 2006
Number of HEAD 666 (as of October, 2014)
(HEAD: Honda Exclusive Authorised Dealer)
Number of AM dealer 11 (as of October, 2014)
[Source : Honda]