Italy’s Piaggio is planning to invest US$30 million in a scooter plant in northern Vietnam.
The plant will be able to produce up to 50,000 scooters a year and is expected to be operational by 2009, according to reports.
The People’s Committee of Vinh Phuc has granted Piaggio an investment license for the plant.
Piaggio currently sells imported Vespa scooters in Vietnam for approximately US$5,000, which is about four times as much as a motorcycle.
Motorcycles are the primary means of transportation in Vietnam, and the country of 85 million people has about 21 million motorcycles.
Honda Motor Vietnam said in July that it is aiming to expand motorcycle production next year from 1 million to 1.5 million to meet the demand, which is especially strong in rural areas.