Danish investor commits $1mn investment to Vietnam’s motorcycle maintenance market
Danish investor commits $1mn investment to Vietnam’s motorcycle maintenance market
Green Tech Aps Denmark, a Danish investor, on Friday signed a partnership agreement with True Moto Care Vietnam JSC, committing an investment of US$1 million to Vietnam’s motorcycle maintenance market, which is valued at billions of U.S. dollars.
Speaking at the signing ceremony, Poul Wiid, CEO of Green Tech Aps Denmark, pointed out that the motorcycle service industry in Vietnam holds significant untapped potential.
According to the Vietnam Association of Motorcycle Manufacturers (VAMM) statistics for the end of 2022, the total number of motorcycles was estimated at 72 million units.
On average, Vietnamese people spend approximately VND800,000 ($34) to VND1 million ($42) per motorcycle annually for repair and maintenance, resulting in an estimated value of VND58-72 trillion ($2.4-3 billion).
The scenario has enticed numerous businesses to get involved.
The current market is predominantly characterized by makeshift, small-scale motorcycle repair and maintenance shops, according to Mai Xuan Huy, general director of True Moto Care Vietnam JSC.
In addition, there has been a prevalent presence of substandard spare parts, and counterfeit and imitation products, causing distress among motorcyclists.
Therefore, by investing $1 million in True Moto Care Vietnam, Green Tech Aps Denmark, which conducts consulting engineering activities, aims to establish standardized services for motorcycle maintenance and repair.
The Danish investor will collaborate to provide True Moto Care Vietnam with management support and enhance service quality at their chain stores, dispatch experts to train personnel, and foster partnerships with European lubricant and spare part manufacturers.
True Moto Care Vietnam, on the other hand, stated that they are in the process of developing an app that allows customers to conveniently book motorcycle repair appointments directly on their phones.
At present, the company is collaborating with renowned brands like Shell engine oils and lubricants, GS batteries, IRC motorcycle tires, and NGK spark plugs.
