Vietnam motorbike market faces crisis

The Vietnam motorbike industry has been in deep crisis since May or June 2008, according to Koji Onishi, general director of Honda Vietnam Co. Ltd., the country’s biggest motorbike manufacturer. Motorbike makers have been battered by a weak economy, rising petrol prices and a depreciating local currency. Most of motorbike retailers reported their worst sales ever, with sales volume reduced by 50% compared to the same period in 2007. A representative from Thanh Tu Company, an importer and retailer of luxury scooters, said his company sells only five or seven scooters per day, compared to dozens in 2007. (December 26, 2008)