Motorcycles, scooters, and mopeds are synonymous in Vietnam (in Vietnamese: xe máy). The motorcycle industry in Vietnam has been boosted in the 1990s due largely to foreign investment. Currently, Vietnam is considered the center of the motorcycle industry in Asia, with average annual sales of motorcycles in Vietnam reach 3 million units. The key players in the motorcycle industry include foreign brands: Honda, Yamaha, Piaggio, Suzuki, and SYM, and local producers of e-motorbikes: VinFast.
In recent years, the domestic motorcycle industry in Vietnam has faced challenges from the government's intention to reduce the number of motorcycles on the streets, the growing market of environmentally-friendly e-motorbikes, and expanding car ownership. The slowdown trends in the local motorcycle market growth have appeared. Under this trend, many motorcycle manufacturers turn to use Vietnam as a base of motorcycle production for exporting to other countries in and beyond the Asian region. In turn, the export industry has been particularly vulnerable to the COVID-19 induced lockdown and global economic decline.
At the same time, the motorcycle industry in Vietnam has drawn concerns from the public, the authority, and the academia. The most common worry is that motorcycle emission can worsen air quality and accelerate climate change. Studies have also shown that the persisting motorcycle dominance in transport could slow down the upgrading of urban facilities in accommodating four-wheel vehicles. Finally, the motorcycle taxi, one of the many occupations associating with the motorcycle industry, is seen as incompatible with the state's vision of urban modernity.
History
While motorcycles were very much present in the roads of Vietnam since colonial times, the current motorcycle dominance on Vietnam's street is a relatively recent phenomenon. The motorcycle industry in Vietnam started to develop only after Vietnam embarked on the market reforms known as doi moi in 1986. Doi moi, therefore, marks a turning point in the development of motorcycle industry in Vietnam.
Pre Doi Moi
Up until the 1980s, bicycles remained the dominant form of transport on Vietnam's street. In those days, motorcycles were prohibitively expensive for the average person due to the shipping fee and import tariffs. A majority of these early motorcycles were European products.
1950s
During the 1950s, most of the motorcycles in both the Democratic Republic of Vietnam ("North Vietnam") and the Republic of Vietnam ("South Vietnam") were imported from France.
One of the popular motorcycle brands in Vietnam during this period was the French-made Mobylette (also known as Moby) by the French manufacturer Motobecane. It had the highest speed of 64 km/h. Mobylette's cute exterior won many fans that Moby enthusiasts still remember it to this day.
1960s and 1970s
The 1960s was called the Italian era, or the era of the European wave, with most of the motorcycles from Europe, particularly Italy. The Italian-made Lambrettas and Vespas ruled the streets of the Republic of Vietnam. These were typically European-style classy and functional designs.
The 1960s also saw the rising of Japan-made motorcycles in the Republic of Vietnam. In this period, the importation of Japan-made Honda motorcycles was subsidized by U.S. dollars to aid in the “nation-building efforts” of the Saigon-led government. Honda 67 and Honda Cubs were the most famous modes. These stylish Japanese motorcycles became popular among civil servants due to its affordability. In Saigon back then, Honda motorcycle was a sign of social status.
1980s
After the end of the Second Indochina War and the Socialist Republic of Vietnam's increasing integration into the COMECON Eastern Economic Bloc, motorcycles from Italy and Japan were joined by motorcycles from the USSR (Minsk), GDR (Simson), and Czechoslovakia (Babetta)/JAWA).