작성일자: 2013.3.29

작성자: 호치민 무역관 Ms.Phuong Nguyen (kotra.sgn@gmail.com)

 

 

1. General market information

 

□ Demand

 

 ○ In Vietnam, major target consumers for electric bikes include ① Pupils and ② Elderly people or housewife. Main reasons are as follows.

  - Vietnam law regulates that people under age of 18 are not allowed to obtain driver license, which means they are not allowed to drive·ride motorbike of capacity from 100cc up. In this case, electric bike is ideal, but only for those whose distance between school and house is short.

  - Most of electric bikes can be used in short distance (usually under 50㎞) because of the matter of battery. So it’s also ideal for elder people to go to the market or places not far away from their houses.

  - Working people do not use electric bikes because they need vehicles that can be used in long distances. Besides, the recharging time for electric bikes would take 6 to 8 hours and this is inconvenient to working people.

  - Another point is that electric bike can only carry lightweight with low speed(less than 30㎞/h). So it’s not suitable for working people who usually need to carry a lot of things and used to be in a hurry.

 

 ○ In comparison with motorbikes, electric bikes are much less popular in terms of using preference. Main reasons include.

  - As mentioned above, electric bikes can only be used within a small region or in short distance.

  - Electric bike can carry limited weight, usually suitable of one-person-use, so it’s not suitable for family. In Vietnam, one family(parents and one or two small children) can be all carried on one motorbike.

  - Electric bikes must use rechargeable battery and it would take 6~8 hours for the recharging, even in case they are not in use.

  - The weather like in Vietnam, especially in Southern regions like Ho Chi Minh City has long rainy season(usually from May to November) with high humid. This has bad affects on the battery, especially in heavy rain with flood sometimes.

  - When the electric bike is out of order, it’s difficult to find a repairing workshop or retailing store of its replacing spare parts. Generally when the electric bike is out of order, it should be taken back to the retailing store(where selling that bikes) for repairing or for buying its spare parts. It’s very different with motorbikes where people can easily find repairing points or replacing spare parts almost anywhere. Besides, the fixing cost (in case of problem) is usually high because not many places are able to fixing electric bike. It should be also be noted that motorbike repairing shop do not fix electric bikes.

  - Battery is usually the main problem. When it’s time for replacing the new one, the price of a new rechargeable battery is not cheap.

  - In terms of consuming behavior, local people still prefer motorbike. Vietnamese people still attach the concept of 'social position' to the 'means of transportation'. To be more specific, they still consider bikes and·or electric bikes are for low- income people, not because of the awareness of a clean·green product. Therefore, most of them will change to motorbike as soon as they have enough money or they are allowed to use motorbikes. It is said that Vietnam would turn to bikes and·or electric bikes mostly when each of the population own a car(like in other developed countries).

 

□ Competition

 

 ○ There are two main kinds of electric bikes in local market. The first one is electric bike, which has assist pedals. The second one is without assist pedals, designed like a scooter but using battery.

 

 ○ Local market for electric bikes is crowded with several supplying sources, from both local production and foreign imported sources.

  - Local production: Popular local makers include Hiep Tan Hitasa Manufacturing Trading Co., Ltd, which produces electric bikes branded HITASA; M.A.R.T.I.N 107 Co., Ltd, which produces traditional bikes, racing bikes and electric bikes branded ASAMA; Trieu Quoc Corp. with electric bikes branded Yamazuki. According to these makers, most of the components are imported from China. Local production in reality is basically at assembling level because the majority of the electric bikes(frames, speed gears, shock absorber, pedal, brakes) are all imported. Local makers just produce some small plastic parts or battery.

   · Concerning local consumers’ favorites, local products are not preferred because they have poor designs, not many options to choose while their prices are almost similar to foreign imported products. The only good thing about local product is that they always have replacing spare parts. It is said that local electric bikes gain less than 30% the market shares and mostly consumed in rural areas. (Source: Interview with local dealers).

  - Foreign made imported products: According to local dealers, foreign imported products gain approximately 70% the total market shares. Most of them wear Japanese brands but are manufactured and imported from China. Their prices are ranging between USD400 to USD600 per unit. Popular brands include Bridgestone, Yamaha, Honda, Giant. Chinese brands (Nishiki, Geobikes, DK Bikes, Sukaiki, Emoto) are much less popular and are not preferred because people worried about their quality. Recently HKBikes (branded Zinger and Color), which is said to be imported from Hong Kong, provided electric bikes that can carry up to 150 and 180㎏, using Lithium battery. According to local dealers, people prefer electric bikes wearing Japanese brands like Bridgestone, Yamaha, Honda although they are manufactured and imported from China because the prices of these products are similar to locally made or other Chinese products but these brands bring more confidence to local consumers about its quality compared with other sources.

  - We also ask for local dealers’ opinions regarding Korean electric bike. Some dealers who had experience with Korean electric bikes before (Thanh Tung-Khanh Hiep Electric Bikes; Dinh Long Co., Ltd, Dao Khoi Co., Ltd) shared the same view that: ① the designs of Korean electric bikes do not suit local people(they didn’t explain in detail whether because of its height or just its out-looking), and ② their prices are too high, much higher than other electric bikes in local market. They also added that if the price of an electric bike cost about US$ 1,000 or more, people would think of purchasing a motorbike instead. Generally, there’s almost no Korean electric bike in local market so far.

 

 

2. Tariff rates

 

□ For the time being, electric bikes under HS Code 8711.99 imported from Korea has to subject to high import tax rate of 65 to 70%. The VAT 10% will be paid by the importer at the custom clearance.

 

 ○ Custom rates

 

Import tariff rates levied on products under HS Code 8711.90

                                     (Unit: %)

HS Code	Item Description	MFN	ATIGA	ACFTA	AKFTA
8711.90	Other
8711.90.51	- Electrically powered motorcycles	70	60	45	70
8711.90.52	- Other, of a cylinder capacity not exceeding 200cc	70	60	45	70
8711.90.53	- Other, of a cylinder capacity exceeding 200cc    but not exceeding 500cc	70	60	45	70
8711.90.54	- Other, of a cylinder capacity exceeding 500cc	70	60	45	70
8711.90.91	- Electrically powered motorcycles	65	60	45	65
8711.90.99	- Other	65	60	45	65

Note:

MFN = Most favorable nations (applied also for imported goods from Korea),

AKFTA = Asean – Korea Free Trade Area (applied for imported goods from Korea),

ACFTA = Asean – China Free Trade Area (Applied for imported goods from China),

CEPT = Asean Free Trade (applied for Asean-member nations)

 

 ○ VAT rates

  - The VAT rate of 10% is applied for commodities under HS Code 8711 according to the Export-Import Tariff and Value Added Tax on Imports.

 

 

3. Retail price trend

 

□ Below is the price list of some popular brands for electric bikes. All of the below prices are retail prices which are inclusive VAT 10%.

 

Electric Bikes	Unit Price (VND/unit)
Hitasa (Locally-made products of Hiep Tan Hitasa Manufacturing Trading Co., Ltd)
Hitasa Atmeni Color: Silver, Tire diameter: 22 inches, Battery: 48-350W	8,050,000 (US$ 385.1)
Hitasa Atmeni Color: Blue, Tire diameter: 22 inches, Battery: 48-350W	8,050,000 (US$ 385.1)
Hitasa Atmeni Color: Red, Tire diameter: 22 inches, Battery: 48-350W	8,050,000 (US$ 385.1)
Hitasa Kawa 2 Color: White, Tire diameter: 18 inches, Battery: 48-350W	8,450,000 (US$ 404.3)
Hitasa Kawa 2 Color: Red, Tire diameter: 18 inches, Battery: 48-350W	8,450,000 (US$ 404.3)
Hitasa Kawa 2 Color: Brass, Tire diameter: 18 inches, Battery: 48-350W	8,450,000 (US$ 404.3)
Hitasa Kawa Zin Color: Red, Tire diameter: 18 inches, Battery: 48-350W	8,700,000 (US$ 416.2)
Hitasa Kawa Zin Color: Bue,Tire diameter: 18 inches, Battery: 48-350W	8,700,000 (US$ 416.2)
Hitasa Kawa Zin Color: Yellow, Tire diameter: 18 inches, Battery: 48-350W	8,700,000 (US$ 416.2)
Hitasa Min Color: Red, Tire diameter: 22 inches, Battery: 48-350W	7,550,000 (US$ 361.2)
Hitasa Min Color: Red, Tire diameter: 22 inches, Battery: 48-350W	7,900,000 (US$ 377.9)
Asama (Locally-made products of M.A.R.T.I.N 107 Co., Ltd)
Asama ASF 22” Speed Max: 30㎞/h, Weight Max: 47㎏, Battery: 48V	8,150,000 (US$ 389.9)
Asama ASG 22” Speed Max: 30㎞/h, Weight Max: 47㎏, Battery: 48V	9,550,000 (US$ 456.9)
Asama ASH 18” Speed Max: 30㎞/h, Weight Max: 40㎏, Battery: 48V 12AH	8,750,000 (US$ 419.6)
Asama ASD Speed Max: 30㎞/h, Weight Max: 15.5㎏, Battery: 18V 10AH	10,750,000 (US$ 514.3)
Honda (Imported from China)
Honda Cool	10,000,000 (US$ 478.4)
Honda Harricane	12,000,000 (US$ 574.1)
Yamaha (Imported from China)
ICATS N2	11,000,000 (US$ 526.3)
ICATS H7	10,900,000 (US$ 521.5)
ICATS H6	10,200,000 (US$ 488)
ICATS H5	10,600,000 (US$ 507.1)
ICATS H4	10,400,000 (US$ 497.6)
ICATS H3	11,200,000 (US$ 538.8)
ICATS H1	10,500,000 (US$ 502.3)
Nishiki (Imported from China)
Nishiki 18	9,500,000 (US$ 454.5)
Nishiki 22	9,700,000 (US$ 464.1)
Nishiki 26inh	12,500,000 (US$ 598)
Nishiki 26”	11,500,000 (US$ 550.2)
Yamazuki (Local assembling products of Trieu Quoc Corp.)
Yamazuki – Spaty - Speed Max: 30㎞/h	7,000,000 (US$ 334.9)
Bridgestone (imported from China)
Battery: Lithiumion – Speed Max: 30㎞, Weight Max: 120㎏	13,100,000 (US$ 626.7)
Recharger Battery Lithium ion Speed Max: 30㎞, Weight Max: 120㎏	13,700,000 (US$ 655.5)
Recharger Battery Lithium ion Speed Max: 30㎞, Weight Max: 120㎏	18,400,000 (US$ 880.3)
Recharger Battery Lithium ion Speed Max: 30㎞, Weight Max: 120㎏	10,700,000 (US$ 511.9)
Recharger Battery Lithium ion Speed Max: 30㎞, Weight Max: 120㎏	11,700,000 (US$ 559.8)
Recharger Battery Lithium ion Speed Max: 30㎞, Weight Max: 120㎏	11,700,000 (US$ 559.8)
HK Bikes (imported from Hong Kong)
HKBike Zinger – Recharger Battery Lithium (for a distance of 60~80㎞) Max Weight: 180㎏, Guarantee for battery: 2 years	9,800,000 (US$ 468.8)
HKBike Color – Recharger Battery Lithium (for a distance of 60~80㎞) Max Weight: 150㎏, Guarantee for battery: 2 years	9,600,000 (US$ 459.3)

Note: Exchange rate; US$ 1 = VND 20,900 (As of March 29, 2013)

Source:

www.xedapdien365.com (Hitasa); http://nghiahai.vn/vn/Xe-dap-dien.html

(Honda, Yamaha, Nishiki); xedapdienbridgestone.com (Bridgestone);

www.hkbike.com.vn (HK Zinger & HK Color)