Under the draft plan for motorbike industry development in the 2006-2015 period and vision to 2020, motorbikes remain a primary transport means convenient for travel and low-cost for infrastructure, but on the condition that sustainable development measures are carried out in the fields of traffic, environment and intellectual property.
The immediate administrative restrictions on motorbike use to minimise pollution, congestion and traffic accidents have proven ineffective. In fact, it needs a long-term and overall strategy to ensure harmony between the development of the motorbike industry and the solution to motorbike-related issues. These are opinions raised by expert attendants at the seminar on Motorbike Development and Management in Vietnam, recently held in Hanoi by Vietnam Development Forum and the Ministry of Industry.
Motorbike: Main means of transport
According to statistics from the National Committee for Traffic Safety, the Traffic Police Department and the Vietnam Road Administration, motorcycles and automobiles are two main means of transport in Vietnam, both in terms of quantities and loading capacities, especially in urban areas and developed economic locations. The motorbike keeps the most important position. According to the Ministry of Industry, Vietnam now has some 18 million motorbikes in circulation and adds some two million new ones each year. The motorbike industry generates US$1.2-1.4 billion a year.
The research results of urban planning in Hanoi and Ho Chi Minh City provided by Ministry of Transport and Japan International Cooperation Agency (JICA) showed the motorbike is also the main transport means for dwellers in both cities. In particular, in 2005, the motorcycle met 62.7 per cent and 77.9 per cent of travel demand in Hanoi and Ho Chi Minh City, respectively, while bus service met 8.4 per cent and 5.9 per cent in the two respective cities. The demand for motorcycles in Vietnamese rural areas will soar in the coming time, because living standards of local people are getting higher.
According to experts, the motorbike plays an important, even indispensable role, in daily lives of both urban and rural people because it is very convenient for short distance travel and high travel frequency in a poorly-developed traffic infrastructure system, while cars are unaffordable for the majority.
The Vietnamese motorbike market has a large potential. According to the forecast by the Institute of Industrial Strategy and Policy, Vietnam will have 25 million motorbikes in circulation by 2010, some 31 million units by 2015 and up to 33 million units by 2020.
A long-term strategy needed
Deputy Minister of Industry Do Huu Hao said motorbikes play a focal role in the social and economic life in Vietnam. The development of the two-wheeler is expected to contribute to the overall development of the Vietnamese industry via the expansion of its supporting sectors and industrial human resources. However, the growth of the Vietnamese motorcycle industry causes traffic congestion, accidents and environment pollution, and requires a long-term development strategy.
Sharing this view, Professor Kenichi Ohno of Japanese National Policy Research Institute said the Vietnamese motorbike market is developing rather quickly. It is important for policymakers to outline motorbike industry development, as well as transport system expansion. Without good policies, traffic congestion and accidents will be harder to solve. The employment of administrative measures like prohibiting motorbike circulation in major cities is unadvisable, as this two-wheeler is the most convenient transport means in Vietnam to date. If there is no compatible alternative to the motorbike, the ban on motorbike use will cause heavier burdens on the community. The bus network is able to meet only 30 per cent of travel demand in a city and the city will get congested more seriously if it is full of buses. Under the calculation, travelling by motorbike will account for 35 per cent and 30 per cent in Ho Chi Minh City and Hanoi, respectively.
According to experts, in the context of globalisation and a market-oriented economy, the Government should introduce a long-term vision. It should not intervene in the business of companies by deciding output, investment and export, but complete macro policies to form a stable, clear, consistent and fair business environment for all economic sectors. The motorbike market will be regulated by tax policies and technical measures in quality, intellectual property, environment protection and traffic congestion.
Under the motorbike industry development plan, Vietnam strives to become a major motorbike exporter with outbound shipments worth some US$300 million by 2010. In the 2011-2015 period, Vietnam will become a research, design and production centre for the Japanese and Taiwanese markets. By 2015, export earnings from the two-wheeler and its components will be some US$500 million. In the 2016-2020 period, the country will become a supplier of motorbike and automobile components for multinational groups. By 2020, the motorbike and auto parts export earnings are estimated to reach US$0.8-1 billion.
Thi Van
Vietnamese
