Honda Vietnam said on June 29 it plans to increase by one third its motorcycle production capacity in the fast-developing country, which is the world's fourth-largest motorbike market.
The company said it will invest $70 million to expand capacity of its Vietnam plant by 500,000 bikes annually, to two million, following an expansion two years ago that lifted capacity to 1.5 million.
Honda Vietnam said the expanded plant will begin operating in the second half of next year.
The motorbike market in Vietnam, which has a population of more than 86 million, rose 20% to 2.26 million units in 2009, placing Vietnam behind China, India and Indonesia, Honda Vietnam said.
The country's major cities are clogged with honking motorbikes and scooters.
Honda Vietnam began its Vietnam production in 1997 and said it had a market share of 63% last year.
Japan's Honda Motor has a 42% stake in the firm.
Copyright Agence France-Presse, 2010
