National brands

• VEA’s net revenue for 2021 was VND 4,019 bil (+9% yoy), NPAT was VND 5,792 bil (+3% yoy). Profit from Joint venture was VND 5,177 bil, (+1% yoy) but still down 27% compared to pre-covid level . 
• VEA hold 30% share outstanding of Honda Vietnam, 20% share outstanding of Toyota Vietnam and 25% share outstanding of Ford Vietnam. Profit from these joint venture account for almost net profit of VEA, especially Honda Vietnam’s motorbikes business, which account for 90% of Honda profit
• Sale volume will come back to the trend in 2022 and beyond because the Covid-19 pandemic restriction is now behind us. Sale volume of Honda’s motorbike has jump for 5 consecutive months. In 3 months 2022, cumulative sale volume growth 11.2 % yoy. Meanwhile, Honda’s auto sale volume and Toyota’s sale volume jumped 36% yoy 42% respectively
• There will be a bigger wave of under age 25 group is on the way of growing up to move into the older age group, which is allowed to get driver’s license for motorbike, pulling up the demand. This will be the main driver for motorbikes sale growth
• The slow and less developed public infrastructure or public transportation will favor the motorbikes used
• Strong brand will help Honda to remain competitive and raise price to compensate for high inflation
• Registration fee reduce 50% this year will push vehicle sale as Honda and Toyota have highest localization rate in manufacturing.