No Chinese Motorcycles In Vietnam

Submitted by: Jerri Lily

Ho Chi Minh City at the crossroads of hope from the past, is the flood see the end of the motorcycle. Vietnam is a true motorcycle kingdom, just then the penetration rate in China, like bicycles, Vietnam is basically every household has a motorbike, some families even more vehicles.

However, I saw a lot also had a doubt, the huge Chinese motorcycle flow does not seem to figure cars are basically manufacturing countries, China’s motorcycle enterprises do not even see the huge business opportunities neighboring motorcycle market, no reason to give up this market?

Not China’s motorcycle enterprises did not find business opportunities in China 10 years ago was once occupied by the Vietnamese motorcycle most of the market, but because of the quality and after-sales and other reasons, not a few years was forced to quit.

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Around 1995, the Vietnamese motorcycle market, mainly dominated by Japanese cars since 1996, China’s motorcycle began to enter the Vietnamese market, compared to Japanese cars, China’s motorcycle hit a major low-cost cards, with low prices, was occupied more than 70% of the market. But gradually, the Chinese cars have begun to expose the deficiencies, low-cost associated with the performance of instability. Found that many Vietnamese, the Chinese motorcycle opened after a period of time, often out of this or that problem, but maintenance is very troublesome. In this case, the Vietnamese people would rather spend twice as much to buy a stable of Japanese cars, but also do not want to buy cheap Chinese cars, once hot-selling motorcycle began to decline in China and eventually pulled out of Vietnam basic . Is to be a sentence, “its also Bo Xing Yan, Yan suddenly and Dying.”

Defeat in Vietnam, the Chinese motorcycle market, the reasons may be very complex, but the eyes of the Vietnamese tour guide with the performance of low-cost strategy for unstable and one of the reasons is really important. Vietnam now has eight million people, almost every household to buy a motorcycle, if stable then some of China’s car, it will be a much larger market. And now we rich countries have begun to buy a car, but the main road to open the German cars, Japanese cars and American cars, the Chinese car is now very difficult to Vietnamese identity. As a Chinese, I heard these words can not help but shame.

Chinese motorcycles from Vietnam did not matter, can not help but think of two problems. First of all, easy to trigger price war blindly problems. In the competitive market, price wars are more often than the means used by low-cost strategy, businesses can quickly capture the market share, open sales space. Price war to make consumers enjoy lower prices of products and services, so to some extent, the price war is beneficial to consumers. However, there are a prerequisite, must be cheap and high quality, discount price, while the quality of products and services can not be discounted, or, once consumers to low-cost and low quality link, even if it is already occupied the market will soon be lost.

Second, the reasonable and orderly manner to open up overseas markets. According to standard economic assumptions, the main game select the most favorable strategy for the individual, but often brings a non-Pareto optimal outcome, that or the social level in the overall failure to achieve optimal effectiveness. Chinese motorcycle is an example of defeat in Vietnam, for a single motorcycle business in China, the price war is undoubtedly the most convenient means to capture the market in the short term, while the product quality and after-sale unstable, it means that the cost decline in prices, while businesses are still able to guarantee a certain profit margin. But for all entering and preparing to enter the Vietnamese motorcycle market, Chinese manufacturers, the disorder is a price war led to the disaster. How to develop the overseas market in the process, to avoid disorderly and vicious competition, undoubtedly worthy of careful consideration later ones.

China’s reform and opening up has gone through 30 years, China’s products and services, more and more out of the country, to the world. Hope that the Vietnamese motorcycle is just an example of a business growing pains, the future more countries can safely use Chinese products, Chinese products will become synonymous with high quality.

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