Fdi in Vietnam Motor Cycle Industry
1. Introduction
The select Industry: This project is based on FDI in Vietnam Motor cycle industry. FDI has been new phenomenon in the Vietnam's society. FDI has constructively and positively contributed to the development of Vietnam in many ways. The popularity of the motorcycle industry has come from the great demand for motorcycles in the Vietnamese market and the government's policy of promoting and attracting foreign investment. Particularly, the limitations on the importation of completed motorcycles and high tariff barriers in a long period contributed to encouraging the formation of domestic motorcycle assembly and production.
Legally there are three forms for foreign investment in Vietnam: Business Corporate Contract (BCC), Joint Venture (JV) and 100% foreign invested company.
The reason for choosing Industry:
Not known for modern conveniences, Vietnam has an inconvenient transportation system. This in itself has been an obstacle for the Vietnamese to overcome while advancing economically. The main mode of transportation is that of the bicycle rickshaw, motor scooters and motorcycles remain the most popular forms of road transport in Vietnam's cities, towns, and villages although the number of privately owned automobiles is also on the rise, especially in the larger cities.
At the end of 2006, Vietnam had 972,912 registered automobiles and 18,615,960 registered motorcycles in circulation. Compared with those in 1995, this number has increased by 2.86 times for automobiles and 5.2 times for motorcycles. The circulation of both two transport means rose very rapidly, especially motorcycles. Motorcycle is used as a personal mean of transport due to its convenience, mobility, flexibility and suitability with the current condition of road transportation, especially in urban areas with short and narrow roads. Demand for people’s travel is mainly short and medium trips (less than 10 km).
The reasons for choosing the country: The potential of
The select Industry: This project is based on FDI in Vietnam Motor cycle industry. FDI has been new phenomenon in the Vietnam's society. FDI has constructively and positively contributed to the development of Vietnam in many ways. The popularity of the motorcycle industry has come from the great demand for motorcycles in the Vietnamese market and the government's policy of promoting and attracting foreign investment. Particularly, the limitations on the importation of completed motorcycles and high tariff barriers in a long period contributed to encouraging the formation of domestic motorcycle assembly and production.
Legally there are three forms for foreign investment in Vietnam: Business Corporate Contract (BCC), Joint Venture (JV) and 100% foreign invested company.
The reason for choosing Industry:
Not known for modern conveniences, Vietnam has an inconvenient transportation system. This in itself has been an obstacle for the Vietnamese to overcome while advancing economically. The main mode of transportation is that of the bicycle rickshaw, motor scooters and motorcycles remain the most popular forms of road transport in Vietnam's cities, towns, and villages although the number of privately owned automobiles is also on the rise, especially in the larger cities.
At the end of 2006, Vietnam had 972,912 registered automobiles and 18,615,960 registered motorcycles in circulation. Compared with those in 1995, this number has increased by 2.86 times for automobiles and 5.2 times for motorcycles. The circulation of both two transport means rose very rapidly, especially motorcycles. Motorcycle is used as a personal mean of transport due to its convenience, mobility, flexibility and suitability with the current condition of road transportation, especially in urban areas with short and narrow roads. Demand for people’s travel is mainly short and medium trips (less than 10 km).
The reasons for choosing the country: The potential of