NEW KINGS OF THE ROAD: BIG MOTORBIKE MAKERS REV UP IN VIET NAM- KTM

In Vietnam, GNI per capita is approaching the key $2,000 level, data from the World Bank shows. Crossing that threshold marks the first phase of a shift in a population’s spending from subsistence to moderate consumption, U.S.-based private equity and investmentconsulting firm TorreyCove Capital Partners said in a report in 2013.

In Vietnam, sales of larger models are outpacing the broader market, according to Harley-Davidson and Ducati and lately is new king KTM Duke from Austria.

With modern technology from motorcycles championships in tournaments around the world every year is always the earliest KTM update on its commercial vehicles .

KTM is one of the manufacturers of large motorcycles oldest in Europe . The company is always at the forefront of new technology equipped on products such as system electronically controlled damping semi-active ( Semi - Active Suspension Electronic ) , Systems electronic throttle control Rideby- Wire or electronic Stability system ( MSCS ) support when cornering lights ( LED cornering ) ... with their mission “Every new ride on your KTM is an ADVENTURE waiting to be experienced – a dream that is yours to realize. The adventurous spirit lurks in all of us, but few ever answer its call. For those with the courage and vision to follow their sense of adventure, KTM is the perfect match. True adventurers, permanently challenging themselves, looking to new horizons for the next goal, destination or opponent to conquer.”

KTM now has dealer in Viet Nam as promising investment in Viet Nam and official KTM Autria for more detailed products information

See more reviewsof biker who owed KTM 390

Source: Vietnam Breaking News, KTM.com

WHAT ARE THINGS IMPORTERS NEED TO PREPARE?

Importing stock from overseas is a lot more complex than picking up the phone, placing your order and waiting for the goods to arrive. There are a lot of factors to consider before you go ahead and place your first import order. We’ve put together 10 tips to help you decide whether the allure of cheaper prices or better products from overseas is as attractive a proposition as it might appear to be at first glance.

1. Is there a local market for the goods you want to import?

Importing for resale

You’ll need to make sure there is enough demand in your local market before you start to import goods for resale. Identify your potential target customers and conduct a survey among them to get a feel for whether importing will be profitable. If there is limited demand, you could end up sitting on a pile of stock that you’re not able to sell and making a loss on the deal.

Importing for use in manufacturing

If you’re planning to manufacture a new product, you’ll need to check there is sufficient demand for the end product to warrant importing some of the stock you’ll need. If you plan to use imports as a substitute for local suppliers for items already in production, it would be wise to check that current levels of demand are expected to remain the same or increase. If demand decreases, you could end up tying up too much of your working capital in import stock that sits on your warehouse shelf.

2. Are you able to import certain items into your country?

Before you spend time, effort, or money on further research, you should make sure you’re allowed to import the goods you plan to bring into your country, and make sure the products you import are legal from Viet Nam.

There are a number of restrictions placed on items you can import. These range from outright prohibitions, which would apply to things like chemicals or medicines, to restrictions on particular products or items from particular countries.

We now just focus on motorcycles & scooter export only until we expand depends on demand from customer.

For more detail you can ask our consultant here for more information 

3. The costs of importing

You’ll need to find out all the costs and charges you’ll need to pay before you place an order with an overseas company. These costs could include:

         Transport and insurance costs (depending on the trade terms you negotiate)

         GST

         Customs duties and levies

         Storage

         Finance charges

         Charges for services like the use of customs brokers or freight forwarders.

You’ll probably need to identify the correct customs clearance tariff for the goods you want to import to find out how much you will need to pay in customs and duties. You’ll probably also need to supply the country of origin of the goods and the value (excluding shipping), to calculate the correct amount payable.

4. Is importing actually cost effective?

Once you have an idea of the final landed cost of an item, you’ll be able to check whether importing will be a cost-effective option for your business. There are a lot of additional charges you’ll need to pay over and above the cost per unit from a factory overseas, and these can add up. You’ll want to be able to make a reasonable return on investment after all these costs have been taken into account.

It is a good idea to get your accountant, business adviser or customs broker to go through your calculations to make sure you’ve included all the costs you’re likely to incur.

You’ll also need to conduct market research to establish what products your competitors are selling. It is a good idea to keep a list of product names, specifications and retail prices, to make sure your imports do have a competitive advantage or unique selling point that differentiates them from products your competitors sell.

5. Can you afford to import?

It’s important to make sure you can afford to finance the cost of importing. Importing is cash intensive for two reasons. The first is that given the high shipping or transport costs, it is more cost effective to place larger orders less often than smaller orders more often – so import orders are often large, and therefore expensive.

The second reason is that importing ties up working capital. The person you’re buying from will either ask for payment upfront or ask for a letter of credit or some other payment guarantee from your bank. This means you can’t access the money or use it to run your business in between placing the order and paying for it, which can spread over a number of months for some orders.

6. The risks of importing

There are more risks associated with importing than buying locally and you need to be aware of these to manage them effectively. These include the following quality and delivery concerns.

         The distance between you and your supplier is great. This means it is harder for you to check on, or deal with, issues like quality control.

         The delivery distance is further and the delivery time longer, which makes returning goods more onerous.

         Because of the time it takes to deliver, you might end up in a position where you have to accept inferior goods, simply because you can’t source the right quality replacement product in time if your supplier lets you down.

You’ll need to take care to source reputable suppliers, and only place orders on terms that give you cover against non-delivery and include penalties for late delivery or for goods that are not up to standard. It also pays to source alternative suppliers so that you have a back-up should you require it.

Run a cash flow forecast to make sure you can still manage to run your business effectively while you have money tied up for import orders. Speak to your accountant, bank manager, or financial adviser to double check you haven’t overlooked anything important.

7. Dealing with exchange rate fluctuations

Exchange rate fluctuations are another potential risk that you could be exposed to as an importer. You’re probably buying goods priced in a foreign currency, which means exchange rate fluctuation can affect the final amount you’ll end up paying in USD. The rate could move in your favour or against you. There are a few ways you can deal with this:

         Transfer the risk to the supplier by asking them to quote in USD if you are from country using another currency.

         Purchase forward cover to protect you from fluctuations.

         Add an exchange rate risk to your margins and carry the risk yourself.

8. Choosing a reliable overseas supplier

The cheapest supplier is not necessarily the best supplier to deal with for imports. It is more important to find a reputable supplier. You want to source a supplier who you’re reasonably sure:

         Won’t disappear overnight with your cash

         Will deliver on time

         Will deliver the products you have specified and at the level of quality expected

         Will keep you informed if there are any problems or delays.

Ask to see a list of customers that your potential supplier supplies and contact them for references. You better find a trust consultant for searching the best exporter here or through  Viettrade website which belong to the government.

9. Dealing with overseas suppliers

Dealing with suppliers in a foreign country often involves a steep learning curve. You might be dealing with people who do not speak the same language as you, and you will almost certainly be transacting with people with a different culture and set of values from yours. The potential for misunderstanding and miscommunication is much larger than when dealing with local suppliers. But we are here to help you out.

10. Trading terms and customs requirements

Trading terms

Before you sign an import order, you’ll need to understand trading terms used by importers and exporters, and you’ll need to be sure that both parties are using commonly accepted understandings of these terms.

To get to grips with terms like EX (ex works or ex factory, warehouse, or plantation), FAS (Free Alongside Ship), and FOB (Free on Board) is not as difficult as it might first seem. The International Chamber of Commerce has developed standardised rules for the interpretation of trade terms called Incoterms. Incoterms 2000 is currently used, but a revised edition, Incoterms 2010, will come into effect from the beginning of January 2011. Your bank’s international trade department, a freight forwarding agent, or your local Chamber of Commerce should be able to help you with this.

Customs requirements

There are a number of customs requirements that you need to be aware of if you plan to start importing. It is an offence to make an erroneous customs entry or declaration and it is recommended that you have a freight forwarder or customs broker assist you with this paperwork. 

SYM VIET NAM

Taipei, Jan, 2003 (CENS)--San Yang Industry Co invested  NT$300 million to set up a world-class motorcycle R&D center in Hsinchu County in northern Taiwan.

The proposed R&D center will also venture into the design of new cars in the future. San Yang expects to spend over NT$1 billion per year for relevant motorcycle and car R&D works.

Over the past few years, San Yang has injected an average of NT$600 million per year for the R&D work. It has spent about NT$6 billion in the past decade to develop world class motorcycles, Huang Kuan-wu, company president, said.

San Yang estimates that its Taiwan plant will deliver 230,000 motorcycles in 2003, making it the No. 1 maker in Taiwan. The firm also expects its motorcycle production will hit the target of 1.5 million units per year, which will ranks the firm among the world's top five makers in the line.

Meanwhile, San Yang also expects to deliver 18,000 cars in 2003 and resume its position as one of top five car makers on the island.

Meanwhile, San Yang continued the development of its VMEP motorcycle plant in Vietnam. The VMEP plant is aimed at becoming San Yang's commercial motorcycle R&D center and will serve as a manufacture and components supply center in Southeast Asia, according to Huang.

Huang said that Taiwan's motorcycle industry is facing low-price competition from mainland China and the brand competition from Japanese counterparts. San Yang has to accelerate its R&D on related products, thus keeping its competitive edges in the market.

It is a must for San Yang to set up its own world class motorcycle components supply center. This will also help the firm reach the target of delivering 1.5 million motorcycles per year, Huang continued.

San Yang expects its motorcycle exports will exceed 30,000 units in 2003. Sales of its Vietnam and mainland plants will total 380,000 units this year.

BEST- SELLER PRODUCTS TO EXPORT

For more information please check the SYM Viet Nam

SUZUKI VIET NAM

Japan’s Suzuki Motor Corp built a $13 million automobile manufacturing plant in the southern province of Dong Nai .

The plant is slated to turn out 5,000 cars in the first year of operations, starting in March 2013, and plans to raise its output to 10,000 units and 20,000 units per year in the following years.

With an aim to localise its production lines at the factory by 50 per cent, Suzuki Viet Nam may export auto components to other Suzuki automobile plants in Asia, including those in Thailand, Indonesia, India and Pakistan. Those countries would also export components to Viet Nam, said Osamu.

Vietnam Suzuki had been producing motorcycles and automobiles in the plant located in Binh Da in Dong Nai Province since 1996.

A new motorcycle plant was constructed in neighboring Long Binh Techo Park in 2006 to meet the expanding motorcycle market in Vietnam. The new motorcycle plant produces 80,000 units per year.

Best-seller and exlusive design for Viet Nam market

Please see more information at Suzuki motorcycles Viet Nam.

Source: Amchamvietnam

PIAGGIO VIET NAM

Piaggio Vietnam Profile

Mar 2012 in Vietnam the Piaggio Group is officially launching a decisive new phase in the development of its operations in the Asia Pacific area, with the opening of a new engine factory to serve its made in Vietnam production, whose capacity will rise to 300,000 vehicles/year.

The factory opened today in the Vinh Phuc industry park near Hanoi will build scooter engines; its initial production capacity will be more than 200,000 engines/year, rising to 300,000 as the production capacity of the vehicle plant increases.

The opening ceremony was attended by Italy’s Foreign Minister, Giulio Terzi di Sant’Agata, the Italian Ambassador to Vietnam, Lorenzo Angeloni, the Deputy Prime Minister of the Socialist Republic of Vietnam, Hoang Trung Hai, and the director of the Vietnamese Economic Department, Nguyen Cao Luc. The President of the Tuscany Region, Enrico Rossi, was also present. Piaggio Group Chairman and Chief Executive Officer Roberto Colaninno led a delegation of Piaggio Group senior managers, including Group Deputy Chairman Matteo Colaninno and Immsi S.p.A. CEO Michele Colaninno.

The factory opened in the Vinh Phuc industry park near Hanoi will build scooter engines; its initial production capacity will be more than 200,000 engines/year, rising to 300,000 as the production capacity of the vehicle plant increases.

Since beginning production in June 2009, under the leadership of Costantino Sambuy, who is also the Piaggio Group’s head of operations in Asia Pacific, Piaggio Vietnam has already built more than 180,000 two-wheelers. Besides its Vespa production (where the 100,000th scooter since Vietnamese production began came off the production lines in the second half of 2011), the subsidiary successfully produces Liberty high-wheel scooters. In February 2012, Piaggio Vietnam also launched the new Fly, an innovative compact scooter available in 50, 125 and 150cc versions. In addition to winning a leading role in the premium sector of the Vietnamese market, Piaggio Vietnam has enabled the Group to move into very important new markets in South East Asia, notably Indonesia, Thailand, Taiwan and Malaysia.

“The engine plant opened today will also produce a new global range of scooter engines developed by our Group for manufacture in Italy, Vietnam and India,” said Roberto Colaninno. “These are four-stroke, three-valve 125 and 150cc engines with a capacity of 60 kilometres per litre, whose emissions and fuel consumption are among the lowest in the world.”

In Asia, in the two-wheeler sector, the Piaggio Group is about to launch the special low-emission fuel-efficient Vespamodel recently presented at the Delhi Auto Show on the Indian scooter market, where annual growth rates are particularly high. Vespa production in India is being started up in a new plant in Baramati – on a site that already houses the industrial complex of Piaggio Vehicles Private Ltd., the leading player on the Indian three-wheel commercial vehicle market – with initial production capacity of more than 150,000 vehicles/year.

In fiscal year 2011 the Piaggio Group reported consolidated net sales of 1,516.5 million euro (+2.1% from 2010), EBITDA of 200.6 million euro (+1.7% from 2010), net profit of 47 million euro (+9.8% from 2010). Net debt as of 31.12.2011 was down to € 335.9 million euro (from 349.9 million euro at 31 December 2010). In 2011, the Piaggio Group reported a significant increase in capital expenditure – in particular for the expansion of Group industrial operations in the emerging countries – for a total of 126.1 million euro, up by 31.1% from 96.2 million euro in 2010. Of the total, 38.3 million euro were in the R&Darea, which also reported expenditure of 30.2 million euro. Consequently, R&D expenditure and investments in 2011 increased by 8.9% from 2010.

In 2011 the Piaggio Group shipped a total of 653,300 vehicles worldwide (up 4.0% from 628,400 in 2010), including 415,000 vehicles in the two-wheeler business (scooters and motorcycles) and 238,300 three- and four-wheel commercial vehicles. Particularly worthy of note is the extraordinary progress in worldwide sales of Vespa branded vehicles to more than 150,000 scooters shipped in 2011. As a comparison, worldwide Vespa scooter sales in 2003 were approximately 50,000.

In the Asia Pacific area, 2011 was an extraordinarily positive year for the Piaggio Group, which reported strong growth compared with 2010, with 104,800 vehicles shipped (+75.9% from 2010) and revenues of 187.5 million euro (+40.8% from 2010). Excluding the exchange-rate effect, revenue growth in this area was 55.1%.

The investments planned by the Piaggio Group in Vietnam for the period 2012-2014 amount to approximately 70 million euro, on a total capex of approximately 400 million euro envisaged by the Group business plan for 2012-2014. The Piaggio Group strategies target decisive growth in operations on the emerging markets, to reach global sales of more than one million vehicles in 2014, as well as a significant increase in revenues, for a consolidated net sales target of approximately 2 billion euro in fiscal year 2014. In terms of revenue breakdown, in 2014 Piaggio expects Asia to account for 50% of Group revenues, compared with 8% in 2003 and 25% in 2009.

Best-seller product selling in Viet Nam market

For specification please check more info in Piaggio Viet Nam and Vespa

HONDA VIET NAM

An assembly line at a Honda Motor Viet Nam factory. Motorbike makers in the country are finding ways to boost export as the domestic market narrows. — VNA/VNS Photo Hong Ky

Honda Vietnam starts construction of third factory in Hanam province

Honda Việt Nam started the construction of its third motorcycle plant in the Southeast Asian country.

Located in Duy Tien District, Hà Nam Province, the US $120 million plant is designed to expand its annual capacity by 500,000 motorcycles.

The production expansion is aimed at accommodating consistent and rapidly growing demand of the motorcycle market in Việt Nam.

The plant is expected to contribute over US $20 million to the local budget per year and create nearly 2,000 jobs for local laborers.

This is the biggest foreign-funded project in Hà Nam, according to the local People’s Committee.

Honda Việt Nam has so far reached a total capacity of 2 million motorbikes this year from its two existing plants in Vĩnh Phúc Province, northwest of the capital city of Hà Nội.

Please see the best –seller products which were exported to Africa market and Southeast Asian

You can check detailed specification from Honda VietNam

PCX 125 cc

Future

You can check detailed specification from Honda VietNam

Source: Vietnam News, Honda Viet Nam

YAMAHA MOTOR VIET NAM

We focus on exporting the products of Motorcycles and Scooter. The product range offered by us is inclusive only developed in Vietnam which had best design products of Yamaha, Honda, Suzuki, SYM, Piaggio, Kymco, KTM and many more depend on demand of our valued customer which their factories located in Viet Nam.

Yamaha Viet Nam

Since the Vietnamese government issued official approval for the establishment of Yamaha Motor Co., Ltd.'s (YMC) motorcycle manufacturing and sales joint venture Yamaha Motor Vietnam Co., Ltd. (President: Takahiko Takeda; location: Hanoi City) on Jan. 24, 1998, preparations for the full-scale start of business operations have been carried on, including construction of the company's factory, product design and development and trial production and building a sales network. Now, with the line-off of the first unit of the company's 4-stroke 102cc underbone type sports model "SIRIUS" on October 7, mass production has gotten under way. 

Yamaha Motor Vietnam's starting capital of US$24.25 million (approx. 2.6 billion yen) has been invested 46% by YMC, 8% by Vietnam Forest Corporation (VINAFOR), a public company under the auspices of the Vietnamese Ministry of Agriculture and Rural Development, 22% by Co Do Mechanical Factory (Location: Hanoi City), a subsidiary of VINAFOR, and 24% by Hong Leong Industries Berhad, an investor in YMC's Malaysian motorcycle manufacturing joint venture Hong Leong Yamaha Motor Sdn. Bhd. (HLYM).

The new factory is located on a 10 hectare site in the Soc Son District of Hanoi (about 45 km north of the city center). It employs about 200 people and, in addition to its engine and chassis assembly lines, is also equipped with welding and painting facilities. 

The SIRIUS model being manufactured here has a first-year local parts supply ratio of 32% and plans call for the production of 3,000 units from Oct. to Dec. of this year and 20,000 units in the year 2000. Long term, YMVN plans to be manufacturing a variety of models with a total production of 250,000 units after ten years of operations.

In Vietnam, motorcycles are an important means of transportation in the daily lives of the people, with total ownership said to be in the range of 4.5 million units. Reflecting the relatively healthy condition of the Vietnamese economy, some 300,000 new motorcycles were sold in 1998 and the trend is toward increasing sales. The SIRIUS now being introduced is a model that stresses high performance and fashionable styling and was developed on the basis of roughly two years of market studies and analysis. With lifestyles rapidly changing in today's Vietnam, this model is targeted primarily at the younger generation. 
With the Vietnamese motorcycle market expected to grow in the future, we intend to see that YMVN continues to supply high quality motorcycles that fit the needs of the Vietnamese market with timely marketing and supply operations. 
(Exchange rate: US$1=106 Japanese yen)

Profile of YAMAHA MOTOR VIETNAM

Name: YAMAHA MOTOR VIETNAM CO., LTD. Location: Trung Gia Commne, Soc Son Dist., Hanoi CEO: Takahiko Takeda Established: April 1, 1998 Capital: US$24,250,000 (Approx. 2.6 billion yen) Investment: Yamaha Motor Co., Ltd. 46% Vietnam Forest Corporation 8% Co Do Mechanical Factory 22% Hong Leong Industries Berhad 24% Site area: Approx. 10 hectare Employees: Approx. 200 Business: Manufacture and sales of motorcycles Production: First year (October to December, 1999) - 3,000 units In the year 2000 - 20,000 units In the year 2010 - 250,000 units

Please see the best –seller products which were exported to Africa market

NOUVO FI RC/ SX/ GP NEW 2015

Specifications

Engine

Engine Type

124,9cc forced air-cooled 4-stroke single; SOHC, 4-valve

Bore x Stroke

52.4 x 57.9mm

Compression Ratio

10.9:1

Fuel Delivery

Electronic Fuel Injection

Clutch Type

Dry centrifugal automatic clutch

Transmission

V-belt automatic

           
Chassis

Suspension / Front

Shock

Suspension / Rear

Dual shock

Brakes / Front

220mm disc

Tires / Front

70/90-16 M/C 48P

Tires / Rear

90/ 80-16 M/C 51P

Headlight

12V 55W/55W

Dimensions

L x W x H

1,943 mm x 705 mm x       1067 mm

Seat Height

776 mm

Wheelbase

1,290 mm

Ground Clearance

130 mm

Fuel Capacity

1.6 gal

Fuel Economy**

89 mpg

Wet Weight***

113kg (RC&GP)

Dry Weight***

112 kg (SX)

Maintenance

Time of maintenance from Yamaha Motor Viet Nam: 3 years

More information of product you can see the main website of Yamaha Motor Viet Nam.