HVN closure spat heats up

07-Jan-2007 Intellasia | 11-SEP-2002 Dien Dan Doanh Nghiep Page 1 | 2:08 PM Print This Post

“Honda Vietnam’s (HVN) request appears as if all local motorbike assemblers should stop production to let the HVN continue production alone” was the response by Le Anh Tuan, secretary of Vietnam Motorbike and Bicycle Association, to HVN’s reaction to the import quotas it received for production this year [See Vietnam Media Watch Sep 9&10, 2002.]

This is also response of many other local motorbike assemblers to the rumour that HVN will likely halt its production due after being notified that the trade ministry only allocated one-half of HVN’s contracted motorbike kits for import.

According to Tuan, all motorbike assemblers receive import quotas subject to the allocation plan of the Ministry of Trade, and the quotas HVN is allocated this year-280,000 kits out of the total 600,000 allocated to foreign invested assemblers-is a dream figure for many other motorbike producers.

There is also the fact that HVN in the first eight months produced 281,629 motorbikes while many other assemblers are sitting idle due to lack of imported motorbike components for production, according to Le Phuoc, the head of the director board of Phuong Dong Motorcycle & Machinery Electrical Joint Stock Co.

Phuoc also calls for more equality in the treatment to local businesses relative to foreign firms in this industry. “HVN didn’t buy motorbike parts produced by local businesses saying these parts are of poor quality. So why doesn’t it build its own parts manufacturing plants to balance its production plans, and by doing so, it would never face a component shortage? And if we, local producers also announce we close our factories, who would listen?” complained Phuoc.


Category: Business

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