Provincial Party Secretary Duong Van An and Provincial People's Committee Chairman Tran Duy Dong visit Honda Vietnam factory

During the meeting, General Director Koji Sugita expressed gratitude to Vinh Phuc province for its continued support and collaboration, which have enabled the company to thrive. He highlighted Honda Vietnam's commitment to shifting its strategy from manufacturing gasoline-engine vehicles to producing hybrid vehicles that combine gasoline and electric technologies.

The leader of Honda Vietnam proposed to the Government, relevant ministries and Vinh Phuc province the exploration of incentives related to the special consumption tax for hybrid vehicles that combine gasoline and electric technologies. He also emphasized the need for timely guidelines on carbon credit registration and a carbon offset mechanism for urban tree planting areas in 2023, as well as the allocation of forest planting areas in the 2024 plan. This would enable the company to comply with carbon credit exchange and offset mechanisms.

During the meeting, Provincial Party Secretary Duong Van An and Provincial People's Committee Chairman Tran Duy Dong recognized Honda Vietnam's contributions to budget revenue, job creation and social security, and its important role in the development of Vinh Phuc province.

The leaders of Vinh Phuc province emphasized the commitment of the Party, State and Government of Vietnam to sustainable economic development, green economy and circular economy. They reaffirmed that Vinh Phuc province is dedicated to supporting the development strategies of enterprises, including Honda Vietnam, particularly in advancing key industrial products aligned with green and circular economy principles. This support extends to facilitating the company’s transition toward producing hybrid vehicles.

The leaders of Vinh Phuc province encouraged Honda Vietnam to explore operating models in the electric vehicle manufacturing sector to develop a strategy that aligns with Vietnam's realities. They affirmed the province's commitment to supporting enterprises, including Honda Vietnam. They acknowledged the company’s concerns regarding the special consumption tax on hybrid vehicles and pledged to relay these recommendations to the National Assembly, Government and relevant ministries.

For matters within the province’s jurisdiction, the provincial leaders tasked relevant departments and branches with coordinating efforts to address the company’s challenges in accordance with legal provisions. They also urged Honda Vietnam to continue its research and production of electric vehicles, motorcycles, and high-end cars at its Vinh Phuc factory, while increasing the localization rate of its products. Furthermore, the province emphasized the importance of collaboration in forecasting human resource needs, supporting training initiatives, and supplying skilled labor for the automobile and motorcycle industries. They also encouraged the promotion of supporting industries for manufacturing and the timely completion of documentation required for the province to facilitate licensing for battery leasing operations.

During the working session, the provincial leaders witnessed the Department of Planning and Investment awarding the 15th adjusted investment certificate to Honda Vietnam.

Currently, Honda Vietnam operates three factories in Vinh Phuc: two for motorcycle production and one for automobiles. These facilities encompass nearly 150,000 m² and have a production capacity of 1.75 million motorcycles and 35,000 automobiles annually. The localization rate for motorcycle production stands at 96%, while the rate for automobiles is 27%.

In the first nine months of 2024, Honda Vietnam reported sales exceeding 1.8 million motorcycles and more than 19,200 cars, contributing nearly VND9,300 billion to the State budget. In addition to its production and business activities, the company is actively engaged in social initiatives, including safe driving training, educational support, environmental protection and community assistance.