Motorcycle industry in Vietnam

[3] The key players in the motorcycle industry include foreign brands: Honda, Yamaha, Piaggio, Suzuki, and SYM, and local producers of e-motorbikes: VinFast.

Studies have also shown that the persisting motorcycle dominance in transport could slow down the upgrading of urban facilities in accommodating four-wheel vehicles.

In those days, motorcycles were prohibitively expensive for the average person due to the shipping fee and import tariffs.

[1][6] One of the popular motorcycle brands in Vietnam during this period was the French-made Mobylette (also known as Moby) by the French manufacturer Motobecane.

In this period, the importation of Japan-made Honda motorcycles was subsidized by U.S. dollars to aid in the “nation-building efforts” of the Saigon-led government.

Vietnamese who went abroad to the Eastern Bloc as part of the COMECON labour exchange scheme often arranged for the shipment of motorcycles back to Vietnam.

Foreign companies and joint ventures were the major players at this stage, while local suppliers’ participation was limited.

Foreign direct investment from Taiwan and Japan was the major booster behind the motorcycle industry's growth in Vietnam in this period.

[11][12] This sudden surge of motorcycles in Vietnam was the result of rapid economic expansion that happened in the country after Doi Moi.

[2] Motorcycles played an essential role in Vietnamese daily life due to its mobility to transfer people and goods.

The leader in this segment, local brand VinFast, is already the third-largest player in the market, exceeding 100,000 annual sales.

[13] Noteworthy, though they failed to cut a piece of cake in the emerging e-scooter market, Japanese motorcycle producers still dominate the scene.

[15] This is because the numerous motorcycles, resulting in traffic congestion, air pollution, fatal accidents, and other significant consequences.

[15] Following the line, in 2017, Hanoi city authority approved a plan to ban the motorcycles that swarm its streets by 2030 in an attempt to reduce traffic jams and pollution.

[12] In recent years, the growing car ownership in Vietnam is also viewed to have post challenges on the motorcycle industry.

Studies have concluded that the increasing car market results from economic development and the weakened role of motorcycles as a sign of social distinction.

In the late 1970s and 1980s, the motorcycle was a sign of social status in Vietnam because it was expensive and exclusive for those wealthy and resourceful families.

Since the late 2000s, cars have been increasingly available in the market thanks to the state development strategy promoting automobiles as a spearhead industry.

Its plant locates in the Thang Long industrial area of Hanoi, responsible for engine components production.

Since 2012, many studies have connected the worsened air condition in Vietnam with its constantly increasing number of motorcycles.

In 2015, the Vietnamese government announced the target to shift 100% motorized two-wheelers park from internal combustion engines (ICEs) to electric vehicles (EVs) by 2030.

Into 2021, the air pollution index in Ho Chi Minh City continues to be at the Unhealthy Level according to the ASEAN standard.

[22] Another concern on the motorcycle industry stems from its precise influences on city infrastructures and urban planning.

Research shows that two conditions significantly stimulate motorbike use in transport: 1) high population density nearby home; 2) immigrants new to the location.

This preference towards cars has impacted the considerable number of motorcycle taxis (in Vietnamese: xe ôm) in the cities.

Many studies have examined the interaction between the state and motorcycle taxi drivers, representing the conflict of interest to beautify the urban scene and defend one's livelihood.

Moreover, motorcycle taxi drivers learn to perform a particular identity, such as too poor to pay the fine or a retired soldier who struggles for life.