March 21, 2005
Honda to build new automotive plant in Vietnam
Tokyo, Japan – Honda Vietnam Co. Ltd., Honda’s motorcycle production and sales joint venture in Vietnam, has announced that it has been granted an additional license for automobile production and sales from the Vietnamese government.
Honda will build a new automobile manufacturing facility within the current plant. Annual production capacity will be 10,000 units, with production targeted to begin by mid-2006. The first model will be the Honda Civic, a popular model in Asia. The company will also promote establishment of a new dealer network. The Vietnamese automobile market has grown rapidly over the past few years, reaching 40,000 units in 2004; it is already the third largest Asian motorcycle market after Thailand and Indonesia. By leveraging its existing motorcycle parts supply base, Honda aims to realize a high local content for its automobiles as well.