Vietnam will remove the prevailing regulation which says no new motorbike production projects should be licensed, according to a local industry agency on Wednesday.

The country's Industry Ministry has proposed the government abolish the regulation to create a fairer playing field for motorbike producers and assemblers in accordance with international commitments regarding its entry to the World Trade Organization, said the Institute for Industry Policy and Strategy under the ministry.

In mid-September, the ministry worked out a national strategy on developing the local motorbike industry by 2025 which encourages all economic sectors to produce motorbike components and spare parts and the local investors to join hands with foreign partners in forming large-scale motorbike producers and distributors.

Under the strategy, the industry will satisfy 90 percent of the domestic demand for motorbikes and to produce over 90 percent of their components and spare parts.

Vietnam is also expected to export 450,000-500,000 motorbikes and the spare parts worth 300 million U.S. dollars between 2006 and 2010 to such markets as Southeast Asia, Latin America, Africa and the Middle East, and establish motorbike research and development centers before 2010.

The country also plans to meet 95 percent of the domestic demand, and manufacture over 95 percent of components and spare parts in 2015. It eyes motorbike export turnovers of some 500 million dollars in 2011-2015 period.

Vietnam will, between 2016 and 2025, manufacture different kinds of motorbikes, including high-grade ones, for domestic consumption and export, and design and produce engines by itself. Meanwhile, the country will make motorbikes powered by clean fuels like bio-fuels.

Local industry insiders estimated that Vietnam consumes 1.2-1.3 million motorbikes each year, and the figure will annually increase by, on average, 9.2-9.9 percent between 2006 and 2010.

Now, Vietnam houses 52 motorbike producers and assemblers, including 22 state-owned, 23 non-state and seven foreign-invested enterprises, with combined annual capacity of 3.13 million units, according to Vietnam's Bicycle and Motorbike Association.

Local producers and assemblers have total annual capacity of some 1.4 million motorbikes, and foreign-invested ones 1.73 million units.

Source: Xinhua