Socialist Republic of Vietnam
Socialist Republic of VietnamSurvey on Electronic Motorcycle Business
(Cooperation with SME)Report
March 2013
Japan International Cooperation Agency (JICA)
Terra Motor CorporationQuantum Leaps Corporation
OS
JR
13-018
1
Contents
0. Executive Summary (P.2-3)
1. Introduction (P.4-7)
1.1 Background (P.4-6)
1.2 Purpose (P.6-7)
2. Motorcycle And Electric Bike Market (P.8-30)
2.1 Motorcycle Market (P.8-25)
2.2 Electric Bike Market (P.25-30)
3. Customer Trend (P.31-33)
4. Law・Regulation (P.34-37)
4.1 Law/Regulation for the company and product their business is manufacturing
electric bike (including motorcycle) (P.34-36)
4.2 Law/Regulation for selling electric bike (P.36)
4.3 Law/Regulation for promotion and commercial advertisement (P.36-37)
4.4 Other regulation (P.37)
5. Final Summary (P.38)
2
0. Executive Summary
In the booming Vietnam, motorcycles are still used so often. The Vietnam motorcycle
market is 3 million sales yearly and the penetration ration is one third. Terra Motors
got the No.1 market share in Japan. We have a plan to provide our new electric bike in
the Vietnam market with our professional manufacturing and service quality that we
experienced in the Japanese severe market.
We investigate the electric bike market, the insight of the customer, and motorcycle
market from the macro perspective. As a result, we formulate a market entry strategy.
Then, we report the business model which is from the production schedule to the after
service on the figure bases.
Firstly, We state how attractive the Vietnam market is. We predict that the Vietnam
market is absolutely attractive due to the population growth, young population
composition and disposable income increase in the urban era even though the economy is
recently depressing. It is expected that the Vietnam population will exceed 100 million
in 10 years so we can say that the Vietnam market will grow like the equal market as Japan.
Secondly, here are the report of the motorcycle and electric bike market situations.
Repeatedly, the Vietnam marker is over the 3 million sales yearly and motorcycles are
common transportations. In 2012, the number of the motorcycle sales decreased until 2.8
million sales due to the economic depression but it is anticipated that the growth rate
of the motorcycles will keep 5% because of the economic recovery and automotive taxes.
YAMAHA and HONDA are so strong in Vietnam that they get 80 % market share. They develop
the strong marketing strategy to build the brand image such as 'Fashionable' and 'Sporty'.
We differentiate from the motorcycle from 'Performance', 'Cost efficiency' and
'Innovative design' On the other hand, the electric bike market is not developed and the
perception of the electric bike is negative due to the Chinese imported bad quality
electric bike. We can create the new market as the authentic innovative electric bike
even though this situation.
We establish the 100% Terra Motors Japan capital subsidiary in Vietnam. We have some
resident officers and send some managers from Japan to develop the market in the
foundations time. We will fund from the Japanese headquarters office to expand the
3
business in Vietnam.
Firstly, We develop our own showroom and focus on the marketing strategy to build the
Terra Motors brand as high brand. We closely evaluate the sales partner and choose the
sophisticated partner to build the hinge brand image. Moreover, we improve the after
service network to provide the reliable maintenance service for our customers.
4
1. Introduction
1.1 Background
Vietnam is hugely attractive market from the macro perspective since they have a stead
population growth, a moderate GDP growth and an urbanization promotion. A population in
Vietnam is 87.84 million people in 2011 and record the 1 million increase yearly.
Graph1 A Population in Vietnam
Source: Vietnam General Statistics Office
Graph2 Consumer Consumption Trend
Source: Vietnam General Statistics Office
With the population growth, a consumer confidence also grows(13.1% increase yearly)
79.580.4
81.482.3
83.384.2
85.186.0
86.987.8
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Population in Vietnam(million・people)
25.0 28.7 32.5 36.9
42.3 49.9
65.8 65.2 75.8
86.2
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Consumer Consumption Trend(Billion USD)
5
and make the 1,000 billion in the retail market approximately. In 2012, GDP is single-digit
growth due to the monetary shock and the fiscal restraint caused by the false financial
statement submission of the national company. However, it keeps the average 24.4% by
2011.
Graph3 GDP per person in Vietnam
Source: Vietnam General Statistics Office
Graph4 Trend of GDP in Vietnam
Source: Vietnam General Statistics Office
From 2002 to 2011, GDP growth is average 13.2% yearly. In 2010, it exceeds the 100
billion USD and 121.7 billion USD in 2011. In the past two decades of the GDP growth,
Vietnam grows by an advantage of 7.2% per year after China in the Asia and it shows how
440 492 553642
730843
1,052 1,064 1,169
1,375
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
GDP per peson in Vietnam(USD)
35.1 39.6 45.452.9
60.970.4
89.5 89.6103.7
121.7
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
GDP(Billion USD)
6
Vietnam economy is powerful. Moreover, Vietnam economy is more than the one from the
publish data since the overseas Vietnamese send a huge amounts of remittance.
In 2012,there is a small decrease in the motorcycle market due to the economic depression
however the market is about 3.2 million units per year which is so huge comparing with
the one in Japan (0.3 million units per year). As a result, the penetration of the
motorcycle is about one third. Taking the Vietnamese average age which is late 20s into
consideration, most of the adult own the motorcycle as a daily usage. It is expected that
the motorcycle market expand more due to the increase of the middle class and the progress
of urbanization. Comparing with the Asian countries, there is an escalation tendency for
the motorcycle market in Vietnam since there is some regulations policy for the automotive
as a solution of the traffic jam.
On the other hand, there is also air pollution problem besides the traffic problem,
so the electric bike is valuable for the CSR and government usage. It is quit low
possibility for the Japanese motorcycle manufacturing to go into the electric bike market
because of their business model. So we are quite sure that we absolutely can solve the
air pollution problem in Vietnam with our Japanese quality electric bike. Also, we can
expand our business if we success in the South East Asian motorcycle market. That is why
we decided to go into the South East Asian market.
1.2 Purpose
Our company operates in Japan. We got No1 market share in Japan with our sales
capabilities and brilliant product only 2 years after it was founded. However, the
Japanese motorcycle market is rapidly shrinking and we cannot see the good future for
this market. But there are still a lot of opportunities in the booming South East Asia
and it is absolutely imperative for us to go into the South East Asia market. We would
like to be a successful case study as a Japanese start up company which goes into Asia
market. It is quite valuable for Japan to contribute to the further development of South
East Asia with the technology and service which are Japanese company strength. We have
three benefits for Vietnam mainly.
・Environment improvement
The exhaust gas causes the terrible air pollution problem especially in the urban era.
7
Recently the number of the motorcycle is increasing because of the urbanization. Most
of the motorcycle drivers put the mask on and keep the exhaust gas away. Our product solves
this situation.
・Job creation
Our business is not only to sell the product wholesale but also to manufacture and open
the show room. Regarding the manufacturing, we can commit to the development of the export
industry and job creation since we will sell the product in Vietnam as well as do near
Vietnam. Also, we transfer the technology knowledge and Japanese service way to Vietnamese
workers.
・New value proposition
Our electric bike connects the smart phone which is getting popular in Vietnam right
now. Our applications platform is open to develop. For instance, we are now thinking to
develop the new applications which people can upload the location information at the urban
era which is still not developed. Moreover, we can provide the new communication way for
the young people community and beneficial information for the local government through
our mobility.
2. M
We
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get m
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2.
Vie
are m
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and r
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want to exp
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etnam has a u
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road is narr
use they ar
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plain about
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on that mot
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HONDA, ther
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c Bike Mark
motorcycle
electric b
share in the
dition abou
acteristic c
etnam. Norma
e motorcycle
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hat traffic
orcycle is
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e are twent
Vietnam in
Picture1
8
ket
market in V
ike in the m
e motorcycle
t HONDA and
compared to a
ally, as eco
e by transpo
convenient.
jam is get
more popula
n. According
ty five mil
2009 and t
The Scene
Vietnam, ge
market. We no
e market plu
d YAMAHA to
another Sout
nomy is grow
rt. The reas
Government
ting worse.
ar than car
g to “world
lions and
he number s
e in HCMC
neral condi
otice HONDA
us we refer
make our st
th East Asia
wer there ar
son is road
in Vietnam
In additio
because of
two-wheeled
four hundre
till is inc
Taken b
tion of ele
and YAMAHA
to advertis
trategy and
countries.
re many cars
condition i
charges muc
on, there i
f lack of pa
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creasing.
by:Terra M
ectric
which
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Acc
is st
And
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cording to H
till increas
d according
arch institu
ion and fou
Graph5
HONDA Motor "
sing and we
Graph6
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to "Asia tw
ute, we can
ur hundred
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"world two-w
know that th
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rce:「world
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know every
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9
umber of Mo
rce:「world
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rcycle sales
two-wheele
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company’s
sands units
torcycle in
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ear three mi
s number of
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ustry 2011"
s product nu
s in HONDA
n Vietnam
ed vehicle g
l condition"
llions moto
Vietnam
general cond
by Census-o
umber. And t
and seven
general con
n」by
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orcycles in
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of-manufact
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HONDA
number
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Graph7
ually Japane
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HONDA and Y
e than Japa
%
in YAMAHA.
much employ
7 Volume of
ese makers g
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ct proves th
high share
ntly. SYM (T
YAMAHA desi
nese makers
Graph8
Uni
t
These comp
yment for Vi
f motorcycl
Sou
get far much
few percent
hat Japanese
and it prov
Taiwanese co
gn but chea
s.
Sales sha
Sou
10
panies share
ietnam.
e productio
urce: Censu
"As
h share in s
tage. Japan
e makers in
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are classif
urce: Censu
e more than
on classifi
us-of-manufa
sia two-whee
selling mark
ese makers
Vietnam ha
ople in Vie
third share
hop design a
ied by make
us-of-manufa
80 % in mo
ed by maker
acturing res
eled vehicle
ket , HONDA
get 84 % s
ve very adv
tnam called
e because SYM
and service
r (2010)
acturing res
otorcycle m
r (2010)
search inst
e industry
has 55%, Y
share in se
vantages. In
d bikes ‘HO
M offers pro
quality is
search inst
market
titute
2011"
YAMAHA
elling
n that
ONDA’
oducts
s very
titute
11
"Asia two-wheeled vehicle industry 2011"
From viewpoint of market, motorcycle price is usually about from 1,000 to USD1,500 (e.x.
HONDA wave series: USD1,000~1,250, YAMAHA Sirius: USD 1,050 etc. On the other hand, HONDA
SH series: USD 3,000~5,000 and Spacy: USD 2,800, Piaggio USD 3,200 etc. Motorcycles of
high price are selled constantly.) Estimated market size in every price is below.
Table1 Market share according to price range (2011)
Source:Terra Motors
According to the research by W&S market research company, people who is living in HCMC
on the web in 2011 , motorcycle types which are ridden the most in HCMC is Wave of HONDA
( 1,607 out of answer 5,441). the second types is Super Dream of HONDA (431), and the
third is Sirius of YAMAHA (374). On the other hand, if we total motorcycle market share
of high price (USD3,000) , there are more than 3% and if we total motorcycle market share
of USD 2,500, there are more than 5%. The market size is not small.
Market size estimation (000 units) Actual Actual Actual Actual Actual Actual Estimation Estimation Estimation Estimation2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Market Growth % (Per price zone) 37% 6% 20% 10% 20% -10% 5% 5% 5%Over 5000 USD 1% 14 19 20 24 27 32 29 30 32 333000 USD~5000USD 4% 56 77 81 97 107 128 115 121 127 1332000UDS~3000USD 30% 421 577 610 731 801 960 864 907 953 1,0001000USD~2000USD 65% 912 1,250 1,321 1,583 1,736 2,080 1,872 1,966 2,064 2,1671000 USD 0% 0 0 0 0 0 0 0 0 0 0TTL Market 1,403 1,923 2,032 2,436 2,670 3,200 2,880 3,024 3,175 3,334
And
impor
point
impro
HONDA
only
Vespa
is ve
as go
Ta
d, we search
rtant next t
t because t
ove fuel eff
A has captur
a price and
a which is t
ery low fuel
ood as HONDA
ble2 Popu
hed the con
to price. Fo
hey certain
ficiency. W
red many of
d quality bu
the represen
efficiency
A or YAMAHA
ular model a
ndition of b
r Vietnam pe
nly need mot
ave series
market sha
t also the m
ntation mod
y. Moreover,
A, either.
12
and price r
brands about
eople, fuel
torcycle da
of HONDA is
res of Viet
merit of th
el of Piagg
, the fuel c
ange (all t
Source:W
t fuel effi
efficiency
ily. All ma
s far famous
nam can be
is fuel cons
gio which is
consumption
the 5,441 un
W&S 社 Moto
ciency whic
is one of th
akers focus
s for good f
said to be
sumption. On
in the hig
of SYM of t
nits)
rcycle Sub-
ch is the m
he most impo
their powe
fuel effici
related wit
n the other
gh price cat
the Taiwan i
-Panel
ost
ortant
r to
ency.
th not
hand,
tegory
is not
Con
quali
In te
our c
to ma
but s
nsumers' mo
ity, design,
erms of fuel
company thin
any custome
sufficient f
Tab
torcycle ba
and servic
consumptio
nks we stand
rs by switc
fuel consum
le3 Fuel
asis of sele
e. It is men
on (eco and
d as followi
hing to ele
mption.
13
consumption
ection serv
ntioned abov
cost effect
ing in the m
ectric bikes
n of each b
ves as price
ve in the con
tiveness) an
market. We a
s not only w
rand
Sourc
e, brand, fu
nsumer behav
nd price (hi
are sure tha
with a desi
ce: Terra M
uel consump
vior forecas
gh added va
at we can so
gn or a fun
Motors
ption,
sting.
alue),
olicit
nction
The
Altho
just
in th
en, We woul
ough Japanes
at the pres
he 1990s.
Grap
d like to s
se motorcyc
sent, there
h10 Posit
summarize th
le makers, s
was time on
Market
14
tioning map
he past tre
such as HOND
n which the
t share of H
of each com
end of the J
A and YAMAHA
share was d
HONDA in V
mpany
Sourc
Japanese mot
A, had estab
dropped gre
Vietnam
ce:Terra M
torcycle ma
blished the
atly tempor
Motors
akers.
brand
rarily
HON
from
China
by th
expen
motor
time.
Then,
As a
diffi
and s
their
in Vi
Bot
YAMAH
is ab
appea
YAMAH
NDA has the
1999 to 200
a. Referring
he Institute
nsive and or
rcycle was a
They were
HONDA ana
result, th
iculty to ha
service in th
r brand call
ietnam is t
Pic
th HONDA and
HA is develo
bout 100 sho
arance is go
HA owns a fl
Graph.11 M
Sour
time on whi
01. This is
g to the "M
e of Develop
rdinary peop
about USD50
poured int
lyzed the C
he Wave ser
ave the powe
he price whi
ed HONDA an
he Wave ser
ture2 The
d YAMAHA hav
oping about
ops. The num
ood and we
agship shop
Market shar
rce: Institu
industrial-
ch the shar
because the
otor Cycle
ping Econom
ple couldn’
0, which pr
o the marke
hinese-made
ries of HON
r in the mar
ch around U
nd their mar
ies of HOND
e masterpiec
ve a huge sh
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mber of shop
can also se
p called YAM
15
re of Vietna
ute of Deve
-basic inte
re was tempo
e large amou
Industry in
ies, at the
t buy them
rice was les
et. Then, HO
e vehicles t
NDA was pro
ket, becaus
SD1,000. In
ket share wa
DA as menti
ce of the H
hop network
n Vietnam. S
s is huge an
ee that make
MAHA Town at
am of HONDA
eloping Econ
elligence of
orarily drop
unt of the m
n Asia –gene
time the m
m. Big amoun
ss than half
ONDA dropped
thoroughly,
duced. The
e they could
2002 and af
as large ret
oned above.
ONDA Wave s
. HONDA is
Since SYM is
nd we can se
ers control
the place o
nomies "two-
f Asia, and
pped to the
otorcycle w
eral data a
otorcycle o
t of the ch
f of HONDA
d the marke
and aimed
Chinese co
dn’t realiz
fterwards, H
turn. Even n
series, Wave
developing
about 150 s
ee those sho
shops very
of main road
-wheeled ve
company li
level aroun
was imported
nd company
of HONDA was
eap Chinese
products at
t share rap
at the cost
ompanies we
ze enough qu
HONDA establ
now, the sta
e α
Source
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shops and Pi
ops anywhere
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ehicle
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s very
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aggio
e. The
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the f
as HO
most
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s soliciting
e brand is v
l. Piaggio
test popular
form of the u
ONDA and YAM
5 shops pe
anies, and e
g the brand
ery powerfu
has about 1
rity, and th
unique sales
MAHA, have t
er company.
each company
d image of Y
Pictu
Pictur
l even thoug
100 shops.
his is one of
s network. U
the sale in
But Piaggi
y manages se
16
YAMAHA.
ure3 HONDA
re4 YAMAH
gh Piaggio w
A brand ca
f the yearni
Usually, alt
use the lo
o signed th
everal 10 s
A Shop
A Town
which is dev
lled especi
ng of the V
though Japan
cal company
he exclusiv
hops. Plus
veloping hig
ally Vespa
ietnamese. P
nese motorcy
y which hold
ve contract
Piaggio had
Source
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ycle makers,
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share
by th
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that
are h
in Vi
a fam
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menti
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shops rapidl
er of shops
over, althou
le can not bu
evelopment o
Therefore
makers are c
xt, I would
are four big
cially HONDA
e by them. S
he original
loped focusi
the people
high. Since
ietnam and a
mily in the
s surmised t
ioned that a
otion techn
y in the pa
has increas
ugh expansio
uy a motorcy
of the Inter
, we think
considering
like to sum
g motorcycle
A and YAMAHA
SYM has drop
brand. Adve
ing on mass
of ad indus
there is st
actual measu
local place
that TV adv
an event on
ique of Vie
st several y
sed recently
on of number
ycle if there
net, the sho
the number
g of reducti
marize moto
e makers in
A have high
pped the mar
ertising act
advertiseme
stry say tha
ill little
urement can
especially
ertising ef
the street
etnam. There
Picture5
17
years. Altho
y, the busin
of shops was
e is no shop
op can be in
of shops li
ion and con
orcycle adve
Vietnam. Th
reliability
rket share t
tivities of
ents, such a
at especial
viewership
not be perf
y in the eve
ffectiveness
is also ver
e are two m
5 Motor Cy
ough there a
ness develop
s as importa
near by the
vestigated
ike HONDA or
trol number
ertising sit
hey are HONDA
y in the mar
these days,
each compa
s TV, newspa
ly the adve
measurement
formed plus
ning and nig
s has a very
ry prosperou
ain content
cle Show
are no signs
pment speed
nt as it said
ir houses be
and we can v
r YAMAHA is
of shops f
tuation. As
A, YAMAHA, S
rket and abo
and Piaggi
ny, general
aper, and ma
rtising eff
t, there is
it is commo
ght like Sho
y high valu
us as a feat
ts in it.
s that espec
is very qui
d that Vietn
efore. But t
visit there
less neces
from now on
mentioned a
SYM, and Pia
out 80% of m
o gets atte
ly speaking
agazine. It
fectiveness
little amus
on to see TV
owa Era of J
e. However
ture of the
Source
cially
ckly.
namese
thanks
these
ssary.
.
above,
aggio.
market
ention
g, are
seems
of TV
sement
V with
Japan.
it is
sales
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Mor
the a
SEO,
We wo
HONDA
leads
(TV C
We ca
assum
chann
reover, thes
advertising
Facebook. A
ould like to
A : HONDA su
s the motorc
CM)
an see TV CM
me how big i
nel of HONDA
Pict
se days, eac
in SNS, su
A WEB site i
o observe t
upplies the
cycle marke
M of HONDA a
nvestment i
A, such as
ture6 Conc
ch company’
ch as devel
s also alway
the examples
advertisin
et of Vietna
nytime, so t
n TV advert
12 ca ting
18
cert with f
s power is
opment of b
ys updated a
s below, th
ng expenses
am.
that you may
tisement of
and An toa
amous music
put also i
banner adve
and the refi
e two major
presumed 1
y certainly
HONDA is. M
n giao thon
cians
nto web mar
rtising to
ned impress
makers, HO
billion ye
see when TV
Moreover, th
ng, etc.
Source
rketing. The
famous WEB
sion is rece
ONDA and YA
en in a year
V is on. We
here is a sp
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ey are
site,
eived.
MAHA.
r, and
could
pecial
(Eve
In
HONDA
ship
is es
(Web
The
of a
http:
ent)
the special
A, the TOP a
was engaged
stimated 5 m
Pictu
b SNS)
ere is no Fa
special TV
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actors, actr
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re8 The s
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channel.
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the first 1
ress and mod
ing Japanes
n or more.
cene of SH
e of its comp
2catinh
19
of the spec
00 buyers o
dels of Viet
e-style dis
series anno
pany, but fa
cial channe
of highest-c
tnam etc. we
h in the cel
ouncement e
ans are gath
l of HONDA
class motorc
ere invited
ebrity Part
vent
hering for t
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there. The
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the Facebook
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amateur sin
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anding
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tively perfo
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e motorcycle
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as HONDA. A
s put into T
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e show of YA
of YAMAHA i
cture10 Th
sts about b
And YAMAHA h
TV CM as wel
he advertise
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s solicited
21
he scene of
billions of
has the 2nd
ll as HONDA.
ement befor
any acrobati
d.
Be U campa
yen advert
market shar
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e the show
ic actions.
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re in Vietna
advertisin
of a movie
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theater.
ness which i
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reover, the
essful. Youn
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dvertising
e campaign o
ng 100 fema
ture11 The
in famous W
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of Cuxi for
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Banner-adv
r young wom
ng was invi
motor cycle
re develope
vertisement
men in the
ted from Vi
show
ed.
popular SNS
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the campaig
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e:WEB
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gn was
(WEB
YAM
50,00
(Lau
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in Ja
P
B SNS)
MAHA is goin
00 or more L
unching even
famous actre
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nt)
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rength into
e already co
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nted and it
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23
is popular
a Facebook
ollected.
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is said that
ower on cre
with a you
page too. In
ge of YAMAH
t all creativ
ativeness.
ng woman
n the follow
HA
ve photograp
Source
wing communi
Source
phy was perf
e:WEB
ties,
e:WEB
formed
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YAM
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type
singe
ure15 The
onsorship)
MAHA sponso
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e Be U campai
like an ama
er, and hold
Launching
red USD250,
Pict
mpaign)
ign of HONDA
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ds a concert
event of No
phot
000 every y
ure16 Viet
is for loca
ng contest,
etc. They a
24
ozza by whi
tograph 15
year to the
tnam nationa
l young pers
however the
re the same
ch the sale
2011
Vietnam na
al football
ons and it i
e MORE YAMAH
promotion a
es start was
ational socc
team
s an event of
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ctivity in t
s carried o
Source
cer team.
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f a particip
invites a f
the same cou
ut in
e:WEB
e:WEB
patory
famous
untry,
but t
Moreo
YAMAH
pushe
No.2
2.
if
bicyc
In V
they are a
over, there
HA. HONDA’s
ed out fash
company.
2 Electric
you say elec
cle with 2 p
ietnam, alm
little tech
are much a
s way seems
ion and uniq
c Bike Mark
ctric bike,
pedals, the
most all of
hniques diff
Picture17
rt, collabo
a common wa
que nature.
Picture18
ket
there are tw
other one is
f electric
25
fer.
MORE YAMAH
oration with
ay but YAMA
It really
8 Art Show
wo type of e
s scooter de
bikes are
HA Campaign
h a fashion
HA changed
seems YAMAH
of YAMAHA
lectric bike
esign and 10
electric
show, etc.
their idea
A’s way is
e in Vietnam
00% operated
bicycle typ
Source
as a featu
a little an
s the strate
Source
m. One is ele
d by electri
pe now. In
e:WEB
ure of
nd has
egy of
e:WEB
ectric
city.
this
inves
a lot
500-8
same
The
elect
in th
elect
many
elect
is be
and a
stude
stigation, w
t of electric
800USD, some
and almost
e situation
tric bikes w
he later sec
tric motor a
think of th
tric bikes w
etween 300 t
helmet. The
ents.
we searched e
c bikes were
e model pric
all design
Sheet7 P
of competit
ere imported
tion, elect
assist bikes
he Japanese
with pedals t
to 500 USD.
erefore elec
electric bik
imported fr
ce was more
ns are copie
rice and sp
tors is desc
d from China
ric bikes we
became popu
motor assis
that are use
In addition
ctric bikes a
26
ke market fr
rom china ar
than 1,000U
ed from Jap
pec of Chine
cribed belo
a. However du
ere disappe
ular. When i
st bicycles
ed during ba
to the pric
are popular
om past unti
ound 2007 as
USD. Specifi
anese motor
ese electric
w. As menti
ue to the man
ared from th
t comes to e
. However,
ttery short
ce, it does
among high s
l now. In th
s below. The
cation of s
cycle maker
c bike
Sourc
oned above,
ny troubles w
he market. R
electric mot
Vietnamese
age. In gene
not require
school and ju
his investig
e price was a
scooter is a
rs.
ce:Terra M
large amou
will be ment
Right after
tor assist b
assist mean
eral, price
e driving li
unior high s
gation,
around
almost
Motors
unt of
tioned
that,
bikes,
ns the
range
cense
school
Fir
is no
in Vi
that
in 20
and E
and J
any b
concl
marke
The
shops
a mot
As we
motor
only
It is
accur
rst company
o concrete da
ietnam when
has a facto
000. In addi
Europe. Apar
JILI. Howeve
brand has n
lusion, diff
et price ra
e situation
s in Vo Thi
torcycle str
e showed in
rcycle is ve
the Vo Thi
s also the c
rate number
P
that is a
ata on marke
it comes t
ory in Binh
tion to the
rt from ASAM
er, their b
not been est
ferent brand
nge motorcy
of distrib
Sau street
eet in the V
the picture
ery differen
Sau street.
case in Han
of the sho
Picture20
competitor
et share. How
o electric
Duong prov
e domestic s
A, there are
rand names
tablished i
ds and diffe
ycle has not
ution chann
in the firs
Vietnam wher
es below, sh
nt from Japa
. Apart from
oi. There a
ops is not f
27
Chinese el
for these e
wever, ASAMA
bike market
vince near H
sales, it se
e other elec
are not wel
n the elect
erent custom
t been esta
nel of elect
st district
re most of th
hop design,
anese maker
m HCMC, the
are individu
founded.
ectric bike
electric bik
A is often me
t. ASAMA is
HCMC. It sta
eems to expo
ctric bike m
ll known at
tric bike i
mer segments
blished yet
tric bikes
of HCMC. T
he shops sel
customer su
s. Electric
re are seve
ual shop and
es
Taken b
kes company
entioned in
the Taiwan
arted its fa
ort their pr
manufacturer
the moment
ndustry. We
s, such as th
t.
is that we
here are a
l the same k
upport, and
c bike stree
ral shops t
d shop stre
by:Terra M
y is ASAMA.
the convers
capital co
actory oper
roducts to T
rs such as H
. In conclu
e could say
hose found
can see a l
cloth stree
kind of prod
after servi
et in the HC
that can be
et. However
Motors
There
sation
ompany
ration
Taiwan
HITASA
usion,
as a
in the
ot of
et and
ducts.
ice of
CMC is
seen.
r, the
Pas
elect
in th
in 20
elect
quant
Vo
satur
out t
st trend of
tric bikes w
he year 2008
012. Import
tric bikes d
tity.
lume of ele
ration of sa
to Asian mar
Chinese com
ere imported
8-2009. The
volume has
due to high
Graph
e
ectric bike
ales of elec
rkets. In ad
Picture21
mpanies is a
d into Vietn
volume come
increased a
oil prices.
h12 shift
lectric bik
es imported
tric bikes
ddition, mar
28
Electric
s follows. G
nam from Chin
es down to
a little in
. It is a li
in the vol
ke from Chin
d from Chin
in China at
rket access
bike shop
Graph 12 sho
na. On the ot
the point t
2012, but
ttle growth
ume of impo
na to Vietn
Source
na was incr
the time. T
was achieve
Taken b
ows that fro
ther hand, th
hat is almo
this is tha
h that can b
ort of
am
e:Comtrade
eased rapid
herefore, d
ed very easi
by:Terra M
om 2006 to
he volume re
ost equal to
at the deman
be ignored a
in World N
dly, due t
distributors
ly because
Motors
2008,
educes
o zero
nd for
as the
Nation
o the
s went
there
produ
also
The f
found
batte
used
websi
and p
was c
Vietn
below
water
when
At
and s
servi
engag
to ch
parts
for e
throw
ucts were ch
three impor
first point
d that there
ery, among o
can last as
ites show th
part was als
considerably
nam is poore
w. When ra
r-proof meas
it is broke
last, Chine
second prob
ice is ofte
ged in selli
hange light,
s. But, ther
electric bik
w their elec
heap. As a r
rtant points
is the qual
e was a majo
other things
s least for
hat battery
so inferior
y higher. Th
r compared t
in comes u
sures are no
en in the r
se makers do
lem was no w
n needed, t
ng products
, tire and s
re are no sh
kes. That is
ctric bikes
esult of it,
s from that s
ity. In the
or problem
. Typically
one year,
shortage af
to Japanese
he second po
to Japan, it
p to the m
t taken by t
ain.
Picture
on’t have af
water-proof
then, custom
s but they ne
so on. Becau
hops which c
s why, if th
s away.
29
, import of
surveys tha
news websit
in quality.
y, lead-acid
even though
fter one mot
e makers in
oint is wate
is common t
motor, moto
the Chinese c
e22 Flood
fter service
, because o
mers have t
ever try to
use these p
could treat
hese parts a
electric bi
t explains t
te at the ye
It seems t
batteries t
h 2-3 years
th use and a
terms of it
er-proof me
to see the si
or sometime
companies,
in HCMC
e network. T
f these 2 p
o repair th
make after s
roducts don
battery, m
are broken,
ikes rose sh
the sharp de
ar of 2007-2
here was a
that Chinese
normally.
a few months
ts quality.
asures. Roa
tuation sho
es become u
its reliabi
The first pro
roblem, of
hat. Chinese
service netw
’t have en
otor and so
almost all
harply. Thre
ecline in im
2009, it is
problem wit
e companies
However the
s. Each comp
The failure
ad environme
own in the pi
useless. Be
lity fell ra
Source
oblem was ba
course the
e importers
work that is
nough local
ome special
customers h
ee are
mport.
often
th the
often
e news
ponent
e rate
ent of
cture
ecause
apidly
e:WEB
attery
after
s only
s easy
spare
parts
had to
The
Marke
motor
shows
elect
motor
Peopl
think
other
An
inves
are m
and m
large
adver
e recogniti
eting compan
rcycle. This
s people who
tric bike f
rcycle. Like
le who canno
king it is c
r electric v
advertising
stigation un
managed by in
magazine adv
e-scale prom
rtising age
on of elect
ny investiga
s means this
o cannot get
for a few y
e this, elec
ot get licen
cheap and i
vehicle in t
Gra
g situation
ntil now, al
ndividual lo
vertisement
motion activ
ncy does no
tric bikes
ation, elect
s stream is
license lik
years, afte
ctric bike c
nse like stu
f they can
he world, th
aph 13 Viet
of electric
most all ele
ocal people
by electric
vity and PR
ot have data
30
is really l
tric bike is
not changin
ke students
r they grad
customer is
udents buy
use for few
he image of
tnamese cus
c bike is di
ectric bikes
so, it is ve
c bikes comp
activities
a, and I co
imited. Acc
s recognized
ng from moto
bought elec
duate from
not changin
and ride fo
w years, it
electric bi
tomer insig
Source:B
fficult to b
s are import
ery difficul
pany. Moreov
are also pe
uld not get
cording to t
d as electri
orcycle to e
ctric bikes.
school, th
ng from moto
r few years
is fine. I
ke in Vietna
ghts
Biz Tequila
be grasped.
ted from Chi
t to find ma
ver, there a
erformed. Th
t advertisin
the local P
ic bicycle n
electric bik
. If student
hey start t
orcycle cust
s. And peopl
f I compare
am is really
marketing
Regarding t
na and main
ass advertis
are no signs
herefore, a
ng situatio
PR and
not as
ke but
ts use
o use
tomer.
e are
e with
y bad.
data.
to the
shops
sement
s that
major
n.
3.
The
are
diffi
there
about
use t
The
relat
motor
in Vi
when
group
with
Whe
49 ou
20 Pe
Accor
Custom
e previous r
increasing.
iculties. We
e is no data
t gender, ag
them, averag
e first cha
tionship be
rcycles cost
ietnam often
they purcha
p should be
customer ta
en it comes
ut of 50 peo
eople answer
rding to the
mer Trend
esearch sho
However,
e conducted
regarding c
ge, income,
ge range in
aracteristic
tween the
ting USD3,00
n have side
ase motorcyc
considered
astes.
to the runn
ople answere
red the ave
e data belo
G
25k
Av
ws that Viet
electric b
questioner
customer ins
type of mo
n a day, and
c point in
income and
00 though he
businesses
cles. The da
as standard
ning distanc
ed that the
rage runnin
ow, distance
Graph14 Av
15km
20km-25km
km-30km
verage
31
tnam has a hu
ike evaluat
r investigat
sight in Vie
otorcycles t
d criteria w
the Vietna
the price
earns USD30
, and they
ata indicat
tactics, th
ce which alw
average run
g distance
e will not
verage rang
5km
m-20km
-
30km-
range
uge market f
tion is sti
tion to see
etnam. 50 us
they have, a
when they b
m market is
of motorcyc
00 per month.
gather mone
es that tho
he most impo
ways is a ch
nning distan
is 15km per
be a major
e in a day
0-5km
m-10km
10km-15km
in a da
or motorcyc
ll low and
the custom
sers of moto
and price o
buy them.
s that ther
cles. Some
. This is bec
y from thei
ugh focusin
ortant thing
allenge for
nce per day
day. HCMC
problem in
Source
ay
cles and the
d the sales
mer trend be
orcycles ans
of them, how
re is no vi
people eve
cause they p
r family me
ng on high-i
g is to be in
r electric b
is within 3
is 15 km ra
Vietnam.
e:question
sales
have
ecause
swered
w they
sible
n buy
people
embers
ncome
n tune
bikes,
30 km.
adius.
nnaire
Buy
choos
The
choos
facto
(Appr
price
uniqu
reaso
quali
as se
are b
custo
who b
to th
do no
they
to th
The
ying motive
se more tha
e outcome sh
se a motorcy
or. Even som
roximately U
e with comp
ueness of Vi
on for this
ity and it i
ecure, cutti
brand-consc
omers. Thoug
buy middle-l
he after ser
ot care abou
buy motorcy
he customer
e chart belo
After servic
Desig
Qualit
Efficienc
Bran
Pric
consists of
n 2 aspects
Graph1
hows that Vi
ycle. 36 out
e members ha
USD3,000), t
petitors. T
etnam marke
is because
s difficult
ng-edge, en
ious in Vie
gh people wh
ow price mod
rvice, most
ut the afte
ycles becaus
s.
ow shows tha
0 5
ce
gn
ty
cy
nd
ce
f Quality, B
s. The resul
5 Motivat
etnamese cu
t of 50 peop
ave HONDA SH
they also ta
he second m
et that they
e Vietnamese
t to find lo
joyable for
etnam. Fuel
ho buy expen
del motorcyc
people hav
r service,
se YAMAHA and
at how custo
5 10
32
Brand, Pric
lt is below
ion of purc
ustomers are
ple answere
series (App
ake the pric
most import
y are more co
e people ar
ow-quality m
our electr
consumptio
nsive motor
cles are sti
ve low prior
but after s
d HONDA alre
omers knew a
15 2
e, and Afte
.
hasing moto
e most consc
d that the
proximately
ce as the fir
tant factor
onscious on
e confident
motorcycle.
ic bikes is
n is also a
cycle do no
ll consciou
rity on it.
service is t
eady provide
about motor
20 25
r service.
orcycle
Source
cious on the
price is th
USD5,000), a
rst priority
is the br
Brand than
t in Japanes
Building a
very importa
an important
t take it i
s on the pri
This is no
taken as ba
e high-quali
cycles they
30
One person
e:question
e price when
he most impo
and Piaggio
y and compar
and. This
Quality. Th
se motorcyc
brand image
ant as the p
t factor fo
mportant, p
ce. When it
t because p
sic service
ity after se
y bought. Op
35 40
Person
could
nnaire
n they
ortant
Vespa
re the
is an
he one
cle’s
e such
people
or the
people
comes
people
e when
ervice
ptions
are C
and N
Rec
20s g
older
or ne
small
or PR
marke
Commercials
Newspapers.
commendation
get informat
r than 30’s
ewspaper is
l city like H
R involving
eting by exp
Recommen
Recommen
on TV, Rec
Graph16
n by friend
tion from i
. This resul
surely effe
HCMC. Test-d
many media
perience-ba
Newsp
ndation in a
Int
TV
ndation by f
ommendation
6 The optio
s is very e
nternet, pe
lt indicates
ective, but
drive event
a outlets w
ased adverti
0
paper
shop
ternet
V CM
friend
33
n by friends
on of notic
effective am
eople who ac
s that mass-
buzz marke
in public p
ill be high
isement whe
5 1
s, Recommend
ing the mot
mong all age
cquire infor
media-adver
ting is mor
laces, using
ly effectiv
n we launch
0 15
dation in a
torcycle
Source
es. Also, w
rmation from
tising such
e important
g social net
ve. We shou
h the busine
20 2
shop, Inte
e:question
while majori
m newspaper
h as TV comme
t especially
tworking ser
ld focus on
ess in Viet
25 30
Person
ernet,
nnaire
ty of
rs are
ercial
y in a
rvice,
n buzz
nam
34
4. Law・Regulation
We ordered the law firm named Tam & Associates in Vietnam(Address:4th floor, TSC Ben
Thanh Building ) to research the law/regulation regarding
manufacturing/selling/advertising of electric bike. We write down the main point taken
from the concrete report.
The electric bike we manufacturing is categorized as Electric Motorcycle (Electronic
Motorcycle:Motorcycle driving with motor and exceeding the top speed 50km/h.) And we
have to follow the all regulation under this category. On the other hand, electric bike
is recognized as one category of a motorcycle which means it is also recognized as a tractor,
3wheels vehicle, moped. Thus the electric bike should follow the regulation not related
to electric bike. The Law/Regulation for electric bike is not decided yet in this
situation.
4.1 Law/Regulation for the company and product their business is manufacturing electric
bike (including motorcycle)
We have to follow these items under the announcement from Ministry of Industry and Trade.
<Related to the company>
The Company must make investment on its own or enter into joint ventures for
investment in manufacturing motorcycle details and/or detail assemblies so as to
attain the minimum localization rate of 20%
The Company must make investment in technological equipment systems to manufacture
details and/or detail assemblies on its own; the motorcycle assembly and quality
control chains must ensure technical requirements and conform to the designed
assembly capacity
Workshops, warehouses and storing yards, offices and auxiliary works of the
Company must be built on land areas leased for long-term use for 15 years or more
under the localities’ industrial development planning.
The motorcycle accessories manufacturing zones must be arranged separately from
the motorcycle assembling zones, with a sufficient ground area for arrangement
of manufacturing technological chains.
The workshops floor must be covered with anti-slip paint, painted with boundary
lines to show safe passages and production technological sites.
35
<Related to manufacturing>
Motorcycles must be assembled on conveyor belts in strict compliance with the
technological process with adequate fixing and specialized inspection equipment
The lined-off motorcycles must be wholly checked regarding their general norms
Enterprises must test their motorcycles by letting at least 1% of the lined-off
ones run on the road.
The results of quality inspection of the lined-off motorcycles must be filed for
at least 3 years.
The Company is required to follow the inspection of the technical quality, safety,
and environment protection Ministry of Transport.
o Inspection of Manufacturing and lined-off motorcycles
o The producer / assembler may only commence the production or assembly of
a product after being issued with the Certificate.
o To maintain the product quality during mass production and grasp the rate
of defective ratio.
o To recall their products in case of being needed.
<Related to employment>
・ The Company must obtain certificates of the ISO 9001-2000 quality control system.
・ The Company must make the roles and formation about manager, designer, engineer,
sells staffs clearly and write down them
・ The Company must write down the explanation regarding the warranty related to
products and content of warranty on the warranty document.
〈Related to the labor standard〉
・ The limit of employing foreigner in Vietnam (the number of foreigner employee
should be less than 3% of all employments were banned in March in 2008
・ The labor must be more than 15 years old and able to working. They should make
labor contract.
・ Working time is at most 8 hours in a day and 48 hours in a week basically.
・ Retirement age is 60 years for men and 55 years for women.
<Related to importing>
・ The spare parts bought and imported into Vietnam must have lawful origins,
including names and addresses of the manufacturer, the importer or the supplier
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of such spare parts.
・ The imported spare parts should be manufactured by factories which have been
recognized by ISO 9000 or QS 9000 Standards
・ Saving the regulation related to Importing lined-off motorcycle
4.2 Law/Regulation for selling electric bike
Within the permitted scope of manufacturing electric bikes as provided for in the
Investment Certificate, the Company is legally allow to distribute its assembled,
manufactured electric bikes to dealers, end users and in showroom within the entire
territory of Vietnam.
*The showroom is required to be registered with the provincial licensing authority and
incorporate into the Investment Certificate.
Organizing conferences and seminars involving the display and introduction of
goods and/or services
Displaying and introducing goods and/or services online and in other forms
specified by law.
Agency
*Agency relations are established based on agency contracts which must be made in writing
or in other forms of equivalent legal validity. The principal is the owner of goods or
money delivered to the agency
*Where principals fix goods purchase or sale prices or service charge rates, agents shall
enjoy commissions calculated in percentage of such goods purchase or sale prices or
service charge rates.
*Saving another regulation because they are quite common.
4.3 Law/Regulation for promotion and commercial advertisement
We recognize there are no special regulations regarding the promotion and Ad for
electric bike. And these are similar to another country’s common ones. However we have
to care following these items.
・ The company who do Ad should be the company or Joint Venture established in Vietnam.
The Representative Office cannot do it.
・ Ad regarding Alcohol and Cigarette is banned. Thus we have to check when we do
some promotion activity with those kinds of products.
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・ WE have to register from the traders and submit the permission sheets to do
promotion activity.
Giving samples of goods or providing samples of services to customers for
trial use free of charge. Plus traders must set aside and remit 50% of the
value of the prizes already announced into the state budget in cases where
there is no prize-winner
Sells Promotion as the price less than cost.
4.4 Other Law/Regulation
Mr.Hayashi, General Director of Terra Motors VN has already gotten Working Visa. So
that is not a serious issue. Long Hau industrial park is caring about the condition under
the law regarding the regulation of factory environment. As we mention below, we have
already passed the inspection of environment. Plus we have already gotten an investment
license with no matter too.
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5. Final Summary
Motorcycle market in Vietnam will grow because the market is not only big but also it
has a special situation of traffic system and population. However e-bikes have still very
bad image because of Chinese electric bikes even though the air pollution is bad. We
believe in that our electric bike has potential to change the image toward Chinese electric
bike and switch from motorcycle to electric bike. Our sells volume will not big due to
high price model in the first year however we will achieve a few percent of market share
after reducing the price every year. And then we convinced that we can contribute to the
issues of traffic system and environment with the next model “hybrid electric bike”
and cheaper electric bike. Plus we also know we can contribute to Vietnam to create new
employment, improving the technology related to electric vehicles and education people
after we will set the factory in Vietnam and hire many staffs there.