HomepagePortraits of Vietnamese motorbike businesses are quietly covering the Tay Bac provinces
In the face of a gloomy market context, Made in Vietnam Detech motorcycle manufacturing enterprise still exists and develops and increases its charter capital from 100 billion to 200 billion VND. Shop for economical wedding jewelry with a series of offers from PNJ kenh14.vn Sponsored After a period of "extreme prosperity", the Vietnamese motorbike market in recent years is showing signs of slowing down. Even the impact of the Covid-19 pandemic along with the fact that Vietnamese people are increasingly reducing their purchases of motorbikes makes the market face the prospect of a "recession". Although manufacturers are still making efforts to change, launching upgraded versions as well as new models with many attractive incentives, the purchasing power of motorbikes in the past 2 years has begun to trend. plummet. In 2020, the impact of the Covid-19 pandemic caused motorbike sales in Vietnam to decrease from 3.25 million units to 2.84 million units, a decrease of 12.6% compared to 2019.
Among them, the Japanese strategic consulting company ABeam Consulting (ABeam Vietnam), in addition to improved financial conditions, helps Vietnamese people buy more expensive items such as cars instead of motorbikes. The fact that infrastructure in Vietnam is improving at a rapid pace also influences people to reduce their purchases of motorbikes. Against the gloomy market backdrop, it is interesting that a Made in Vietnam motorbike manufacturing enterprise is still growing and increasing its charter capital. In May 2021, Detech Electric Vehicles and Motorcycles Co., Ltd. registered to change its charter capital from 100 billion VND to 200 billion VND. This 100% private-owned public is one of the large enterprises in Hung Yen province and is on the list of 500 largest private enterprises in Vietnam voted by VNR in 2021.
Why does this private enterprise do this in the context of fierce competition from big brands such as Honda, Yamaha, Suzuki,...? “We prioritize the selection of mountainous and rural segments. For example, the Win car line serves people in mountainous areas. People in mountainous areas ride motorbikes, carry 2 pigs of 1 kg each and climb steep hills, those vehicles must be very good and very standard for people to be able to ride them. Many businesses do it but cannot sell it. We can sell because we meet demand,” Mr. Dinh Van Bac, director of Detech company, once shared on Hanoi television station.
Mr. Bac said he was very proud to go to places with only motorbikes manufactured by his company, such as Lao Cai, Yen Bai, and Ha Giang. This director said that in the Northern mountainous provinces, almost all Detech cars are available, and there are even districts with fewer Honda cars than theirs.
According to Mr. Dinh Van Bac, Detech company was established quite early in 1991. Initially, this enterprise followed the general market trend of importing dump trucks, then manufacturing and assembling motorbike components (CKD). ). In 1999, when the Government promoted localized motorbike production with tax support, loans and incentives, Detech invested in the production of Made in Vietnam vehicles. In the early 2000s, Made in Vietnam motorbikes developed very strongly. Mr. Bac said that during this period, the output of Detech cars sold to the market was 2 million units per year.
To achieve this success, there is no small contribution from Mr. Dinh Van Bac. Mr. Bac was born in 1961. After graduating from high school in 1978, the State sent him to study in Czechoslovakia to become a mechanical engineer. After returning home in 1985, Mr. Bac worked as a mechanical engineer for a factory in Hanoi. In 1996, Mr. Bac returned to Detech. Initially, this unit's main job was environmental treatment. When the Government developed motorbike production in 1999, Mr. Bac was the pioneer in taking Detech in a new direction. He said his career followed the ups and downs of the motorbike industry from times of strong growth like the early 2000s to times when the market went down like 2006-2010. This is the time when assembly businesses are almost out of the game. According to Mr. Bac, for a business to survive and develop today, the key is to ensure product quality and build a brand. In recent years, Detech has deployed additional production of electric motorbikes and electric bicycles because this is a general market trend for environmental protection. Mr. Bac said this business is currently leading the electric vehicle industry in Vietnam. To do this, Mr. Bac believes that businesses need to invest a lot in molds, frames, plastic sets, paint, and modern production lines.