Kymco Progress In Vietnam

[skadamo]

http://english.vietnamnet.vn/biz/2008/06/788335/

The growth prospects of the market are good as young consumers in cities have an increasing preference for scooters. Many motorcycle assemblers have switched to scooter production to capitalize on this market trend and have been expanding production to meet local demand.

Taiwan's biggest bike maker Kwang Yang Motor Co. Ltd. (KYMCO) is an example. It has become the majority owner of Hoa Lam Kymco Motors Corp. after acquiring a 60% stake from its local partner.

Hoa Lam Automobile-Motorcycle Joint-Stock Co. transferred its 60% stake in this joint venture to the Taiwanese company, thus reducing its holding to 30% from the previous 40%. KYMCO's stake in the venture, meanwhile, is up to 90%.

Nguyen Tien Sy, deputy general director of Hoa Lam Kymco Motors Corp., says that the authorities have endorsed the stake transfer between the two partners. The acquisition, whose value is not disclosed, is part of the Taiwanese company's plan to deepen its investment in Vietnam.

KYMCO will develop a new factory in HCMC's District 2 besides the joint venture factory that is mainly assembling motorcycles in Binh Chanh District. The new factory in Cat Lai Industrial Park will produce motorcycle parts for local sale and export to ASEAN markets, Sy says. KYMCO will move its production lines from a factory in Taiwan next month to the new factory, which will mainly manufacture scooters.

KYMCO attributes its increased investment in Vietnam to the strong demand for motorcycles. This firm forecast the domestic scooter market will continue expanding in the next five to 10 years.

KYMCO entered Vietnam in late 2004 by buying a 30% stake in the bike manufacturing plant, which was wholly owned by Vietnam's Hoa Lam Automobile-Motorcycle Joint-Stock Co. The value of the factory then was set at US$15 million.

The brand name KYMCO, however, is not popular in Vietnam, but the Taiwanese company has reaped success elsewhere, exporting products to 81 countries worldwide, including Europe. KYMCO has set up nine motorcycle factories in Asia.

[kawzak]

That is very interesting. The scooter Kymco plant(s) in Taiwain will be building motorcycles ? And the scooters will be made in vietnam. I hope the Quality stays high, I know things can happen. Our business has a plant in Asia and we have to keep a close eye on it.I do understand that any business needs to make profit and hopefully grow, but some times that can have severe growing and /or quailty pains. I hope all goes well for them. I think Kymco has an excellent product -may it stay that way.