Honda Vietnam has announced plans to build a third motorcycle production plant and expand its annual production capacity by 500,000 units to supply the growing motorcycle market in the country.
The new plant, with an expected investment of US$120 million, is scheduled to begin operations in the second half of 2012 in the northern province of Ha Nam, around 40 kilometers south of Hanoi, the company said in a statement.
The joint venture began motorcycle production in 1997. The addition of the third plant will increase its production capacity to 2.5 million units, from 2 million now.
The motorcycle market in Vietnam has been steadily growing and the market size reached 2.69 million units in 2010, up 20 percent from 2009. It is the world's fourth largest motorcycle market behind China, India and Indonesia, Honda Vietnam said.
The company said its market share in Vietnam reached 64 percent in 2010.