Key notes: Generally
speaking, there are more and more foreign motorbike manufacturers flock to
Vietnam in the context that the driving license policy in this country has been
loosened and the Vietnamese nationals now have more opportunities to possess
large capacity motorbikes.
I.
Trading right
After the WTO accession in
2007, Vietnam opened the market for importing the big motorcycle (175cc+),
officially entitled to import as from June 2007.
As of 1 January 2009,
foreign invested companies engaging in distribution services will be permitted
to engage in the commission agents', wholesale and retail business of tractors;
motor vehicles; cars and motorcycles.
Thus, there is no
limitation to the foreign investor on the market access. However, the
establishment of outlets for retail services (beyond the first one) shall be
allowed on the basis of an Economic Needs Test (ENT).
II.
Requirement on A2 License
Instead of restricting the
subjects who can attend the exams for A2-grade driving licenses (applied to big
capacity motorbikes), recently, the Ministry of Transport issued the
Circular 38/2013/TT-BGTVT on 24 October 2013 and effective from 01
March2014 that allows very much more flexibility to all A2 license applicants.
Before the Circular No. 38
was issued, only the people serving in the Ministry of Public Security, army,
market management taskforce, forest rangers, or sportsmen could attend exams
for this kind of license. However, with the new regulations, there would be no
more barrier for people to drive big motorcycles.
According to mentioned
Circular, the A2 requirement will be pretty the same as requirement of the A1,
and presume anyone (Vietnamese or resident Foreigners) can apply for the A2
without any concerns.
III.
Vietnam market potential of big motorcycle
(175cc+)
A lot of the world’s
well-known motorbike manufacturers have flocked to Vietnam in recent years.
More big names would arrive in Vietnam in the time to come, once they realize
that the demand increases as the result of the new driving license policy and
the new habit of Vietnamese.
In December 2009, Ducati
became the first European large capacity motorbike manufacturer landing in
Vietnam. After three years, the manufacturer decided to expand its business
scale in Hanoi, because, as Ducati’s General Director Bradley Lalonde said, the
Vietnamese market was not as small as thought.
Ducati, which soon realized
the great potentials in Asia, decided to set up an assembling factory in
Thailand to take full advantage of the regional free trade agreements. Diavel
model, which is imported from Thailand, for example, is $12,000 cheaper than
the product imported from Europe.
Ducati has revealed that it
can get the two-digit growth rate annually in Vietnam. This has prompted the
manufacturer to look for more retail premises for the new showroom in HCM City
and plan to launch two new models next year.
In August 2013, KTM, the
Austrian manufacturer, officially chose a distributor in Vietnam. It plans to
set up showrooms both in Hanoi and HCM City.
In an effort to compete
with the rivals, KTM has introduced 8 models at the same time for different
market segments, from high class Duke 125 to 1190 RC8 which has the cylinder
capacity of 1190 cc, 173 horsepower, which is nearly equal to a medium size
car.
Analysts believe that
Suzuki, Kawasaki or Benelli, the other big names in the world, are also eyeing
the Vietnamese market as they have seen their colleagues making fat profit
there.
Vietnam imports some 1,000 products every year,
just 1/10 of the total number of large capacity motorbikes sold every year in
Thailand. Therefore, the manufacturers believe they have great opportunities in
Vietnam.