VietNamNet Bridge – The number of registered motorcycles had surpassed 43 million as of last December, around seven million units higher than the figure envisioned in the master zoning plan for the sector until 2020.

A motorcycle traffic jam is seen in this file photo. The number of registered motorcycles had surpassed 43 million as of last December nationwide

The number was unveiled at the signing ceremony for a cooperation agreement on traffic safety between the Vietnam Association of Motorcycle Manufacturers (VAMM) and the National Traffic Safety Committee on Wednesday.

Compared to the master zoning plan approved by the Government in February 2013, the number of registered motorcycles has beaten the target of around 36 million units by 2020. However, there have been no statistics on the exact number of motorcycles on the nation’s roads.

The master zoning plan also sets a limit to the volume of motorcycles by administrative, economic and technical measures, and this means of transportation will be mainly used in rural areas where public transportation is not available.

In the past years, Vietnam has become a lucrative market for many motorcycle manufacturers while many big cities worldwide have started to restrict motorcycles.

However, motorcycle sales have declined in recent years. According to Vietnam Register, the number of registered motorcycles dropped to 2.92 million units last year compared to 3.27 million units in 2013, 3.28 million units in 2012 and 3.67 million units in 2011.

The declines make industry insiders believe that Vietnam’s motorcycle market has been saturated while the combined capacity of motorcycle producers in Vietnam is 4.5-5 million units per year.

Experts forecast there will be at least 18 million more motorcycles in circulation towards 2020. According to many organizations, Vietnam is the world’s fourth biggest motorcycle market after China, India and Indonesia.

According to VAMM and the National Traffic Safety Committee, more than 70% of traffic accidents last year involved motorcycles.

To help reduce traffic accidents, VAMM and the committee inked a cooperation agreement on a program responding to the Traffic Safety Year 2015. The program aims to raise people’s awareness of complying with road traffic rules to gradually form safe riding habits.

Under the program, VAMM will carry out activities to promote road traffic safety that the committee and some members of VAMM have implemented in the past time, and establish a fund to assist scientists in conducting research to propose motorcycle development solutions and policies. VAMM will contribute VND1.7 billion to the fund this year.

VAMM, which is headed by Honda Vietnam general director Minoru Kato, consists of five manufacturers, namely Honda Vietnam, Piaggio Vietnam, SYM Vietnam, Suzuki Vietnam and Yamaha Motor Vietnam.

SGT