Honda Vietnam Company 2

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The Power of

Dreams

Honda Vietnam
company
By: Group 5
Overview
1. Introduction
2. Supply chain analysis
a. Raw material and finished goods
suppliers
b. Manufacturer (central enterprise)
c. Authorized Honda dealers (HEAD)
d. Retailers and Supermarkets
e. End customers
1. Introduction
Honda Motor Co., Ltd., a multinational conglomerate company from
Japan, was established on September 24, 1948. It is headquartered in
Minato Ward, Tokyo

Honda Vietnam Company was established in 1996 as a joint


venture between Honda Motor Company (Japan), Asian Honda
Motor Company (Thailand), and the Vietnam Engine and
Agricultural Machinery Corporation
2. Supply chain analysis
a. Raw material and finished
goods suppliers

Honda Vietnam has built its


supply chain system for
components and spare parts with
more than 110 businesses, with
approximately 20% of these
enterprises using 100%
Vietnamese capital
Japan China
Supplying the most crucial components related Supplying other components such as
to the engine and gearbox of motorcycles, such lights, mirrors, engine covers...
as cylinder, piston, crankshaft, and
transmission shafts

ThaiLand
Supplying essential components such as
cylinder head and carburetor, oil pump...
In March 2014, Honda Vietnam
inaugurated its first piston
manufacturing workshop in Bac Ninh
Nittan Vietnam
Company (a joint venture
between Thailand and
Japan) specializes in
supplying Honda with
energy-efficient and
environmentally-friendly
engine valves for
motorcycles and cars
Nissin Brake
Manufacturing
Company, wholly
owned by Japan,
specializes in supplying
brake components for
motorcycles and cars
to the Vietnamese
market and for export.
Of the products
supplied to the
domestic market,
about 50% are
provided to Honda.
Honda Vietnam uses materials supplied by 10 companies in Japan
and a joint venture company with factories in Vietnam, VAP
Vietnam Engine and Agricultural Machinery
Corporation - Joint Stock Company (VEAM)

Phổ Yên Mechanical No. 1 Machine Parts Cổ Loa Mechanical Joint


Joint Stock Company Joint Stock Company Stock Company
1 Established: 1998

2 Headquarters: Phuc Thang, Phuc Yen, Vinh Phuc.

3
01
Investment capital: More than 290 million USD

4 Labor: 3.560 people.

5 Capacity: 500.000 vehicles/year.

Operations: Producing popular motorcycle models


6
such as Honda Wave, Honda Dream, and scooter
models such as Honda Air Blade, Honda Vision.
7 Scale: Large area with modern production line system.
Contribution:
Meeting the demand for motorcycles in the Vietnamese
market.
8
Creating many jobs for local workers.
Contributing to the economic development of Vinh Phuc
province and neighboring areas.
1 Established: 2008
2 Headquarters: Phuc Thang, Phuc Yen, Vinh Phuc.

3 01Investment capital: 374 million USD


4 Labor: 1375 people.
5 Capacity: 1.000.000 vehicles/year.
Operations: Expanding motorcycle production
6 capacity, especially high-end scooters such as
Honda SH, Honda Lead, Honda PCX.

7 Scale: Increasing production capacity with


modern, environmentally friendly production lines.

Contribution:
8 Meeting the increasing demand for high-end scooters.
Improving product quality and competitiveness in the
international market.
1 Established: 2014

2 Headquarters: Dong Van, Duy Tien, Ha Nam

3
01
Investment capital: 120 million USD

4 Labor: 1.300 people.

5 Capacity: 1.000.000 vehicles/year.


Operations: Focuses on the production of new
6
motorcycles and spare parts.
Scale: Equipped with advanced technology, helping
7
to improve production capacity and product quality.

Contribution: Meeting the demand for


8 motorcycle parts and spare parts, not only for the
domestic market but also for export.
1 Established: 2005

2 01
Headquarters: Phuc Thang, Phuc Yen, Vinh
Phuc.
3 Investment capital: About 60 million USD

4 Labor: 408 people.

5 Capacity: 23.000 vehicles/year.

6 Operations: special emphasis on quality,


safety and environmental friendliness.
7 Scale: equipped with an engine
assembly line
Exclusive
distribution
Honda typically
distributes high-end
products like SH
motorcycles and
cars to dealerships
in major cities
Hanoi has 57 heads in operation

Ho Chi Minh city has 61 heads in operation

source: timviec365.vn
Widespread distribution
In the past fiscal year,
HVN maintains 796
HEAD stores national
and 3 Honda Big Bike
stores in Ho Chi Minh
City and Hanoi,
distributing large-
capacity imported
motorcycles

source: .honda.com.vn
D. SUPERMARKET STORE
Distribution Manufacture

Transport Retail
Cooperate with many suppliers Stored in warehouses before distribution

There are vehicle factories in many countries Use a wide distribution network
Stores and agents

freight
Factors Affecting the Supply Chain

1.Inventory management

2.Transportation efficiency

3.Information technology

4.Product quality

-> Understand the supply chain to help the company stay


competitive and meet customer needs in the market
E. FINAL CUSTOMER
1. Characteristics of the final customer file in Vietnam
Main customer groups:

Youth and young adults Middle-aged (36-55 years old)


(18-35 years old) Seniors (over 55 years old)
2. Data on Honda's motorcycle and car market in Vietnam:

Motorcycles: Honda accounts for about 80% of the motorcycle market share in Vietnam. In
2023, Honda has sold more than 2 million motorcycles.

Cars: Honda also has a strong presence in the car market with about 10% market share. In
2023, Honda will sell more than 25,000 cars in Vietnam.
Customer satisfaction

The satisfaction
level of Vietnamese
customers with
Honda's retail
services reached
830/1000 points.
Source: J.D. Power,
Report from Honda
Vietnam.
Feedback and improvements

“Honda Vietnam receives about 200,000 feedback from customers every


year, and 80% of it is used to improve products and services”.
World market information

Globally, Honda produces about 4.5 million cars and more than 20
million motorcycles every year.
Honda has more than 2,000 distribution centers and 10,000 dealers
worldwide.
Source: Honda Motor Co., Ltd. Annual Report, Global Market Insights.
THANK YOU

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