Hino Motors Vietnam, Ltd (Vietnam)

The company was established in 1996 as a joint venture between two Japanese partners (HINO MOTORS LIMITED; SUMITOMO CORPORATION) and a Vietnamese partner (VIETNAM MOTORS INDUSTRY CORPORATION - JOINT STOCK COMPANY). It is engaged in manufacturing and assembling medium-heavy trucks under the HINO brand, including series 300, 500, and 700. In addition, it also trades spare parts for trucks. The company imports equipment, parts of motor vehicles, and spare parts from Japan, Malaysia, China, Thailand, the USA… The output products only serve the local market through a network of agents nationwide. After having a sudden revenue depression in the FYE 31 Mar 2019 due to the new regulations on emission standards of cars effective in Mar 2019, the subject's annual net revenue increased continuously recently with a compounded annual growth rate of 25.2% during the period of FYE 31 Mar 2019 - FYE 31 Mar 2022. According to Ms. Nguyen Thu Huong, the chief accountant, the Covid Pandemic had trivial effects on the subject's business. For FYE 31 Mar 2023, it is estimated to achieve a revenue growth rate of 15% compared to the previous period, she added.It is noticeable that the subject's operation was normal till the end of Jun 2023. According to a female administration staff, its manufacturing and assembling activity has been mostly suspended since July because it is transferring the production line to comply with the European emission standards Euro 5, which will better control and reduce the amount of emission from vehicles, including both gasoline and diesel engine vehicles. As planned, it will organize the manufacture and assembly from 03 days to 05 days monthly, applying from July to December 2023, she added. The company will take time to propose the license and prepare machines and components for this technology transfer, which is expected to be completed in the second quarter of next year. The administration staff revealed that the subject has not yet had any plan for cutting the labor force up to now. Employees in the manufacturing and assembling sector are currently on leave temporarily, waiting for the completion of the technology transfer to Euro 5 in accordance with the regulation of the Decision of the Prime Minister. The office staff is working normally now. In this case, periodic monitoring is advised in any credit transactions with it.