Hanoi (VNA) - The recent launch ofmotorbike models with high-engine displacement has attracted the Vietnamese andstirred the domestic market, even though import prices are 2-3 times higherthan world prices.

The leader in this segment is Honda Vietnam,with the SH 300i imported from Italy. With a price of 248 million VND (10,880USD), nearly the price of a small sedan, the motorbike has seen good sales inurban areas, with an expected volume of 400 units next year.

Kymco, a brand name of Taiwan, introduced thePeople GT300i model in Hanoi in July. This motorbike is seen as a directcompetitor to the Honda SH300i. However, a Kymco representative said theintroduction is just to get an idea of the Vietnamese market before preparingfuture plans.

Meanwhile, Yamaha Vietnam is planning to rollout model X-MAX 300 in the country this year, which is also expected to be arival of the SH300i.

Piaggio, early this year launched two modelswith high engine displacement -- Aprilia and Moto Guzzi -- in the domesticmarket, to mark its 95th anniversary. In addition, the firm has two othermodels -- Beverly 300 i.e and Vespa GTS 300.

A French company, Peugeot recently entered theVietnamese market with models Geopolis 300 and Satelis 300 and appears intentto compete with its rivals for market share.

Insiders said with the country’s increasingeconomic development and transference of customers’ consumption demand,high-engine displacement motorbikes and motor scooters would witness a lot ofopportunities for development by 2020.

Five years ago, it was rare to see a high-enginedisplace motorbike on the streets. But today, the image is common.

The market opened its doors to the vehicle whenthe transport ministry removed its regulation which restricted the number ofcandidates allowed to drive with an A2 licence -- the requirement formotorbikes above 175cc in force since March 1, 2014.

This new adjustment, Honda Vietnam GeneralDirector Minoru Kato told vietnamnet.vn was like "good medicine tostimulate the growth of the high-engine displacement motorbikes market in Vietnam.

However, the selling price remains high due totaxes and fees. Currently, the price of the bike factors in an import tax ofbetween 65 percent and 75 percent, the special consumption tax of 20 percentand value-added tax of 10 percent. Besides this, other fees such as transport,storage and registration fees are also included. On an average, an imported carwill have a price that is two or three times higher than the price in the worldmarket.

According to commitments of tax cuts andreduction from trade agreements that Vietnam has signed, the import tax ofhigh-engine displacement vehicles from ASEAN, Japan, the European Union and theUnited States will be reduced systematically and abolished within the nexteight years, which would lower prices in the future.

Insiders said local motorbike makers had thetendency of producing high-engine motorbike scooters in Vietnam, not only tomeet demand, but also for export. However, there were concerns that when majorcities did not yet have effective measures in place to reduce traffic jams, theincrease of high-engine displacement models on the roads would worsen thesituation. — VNA