Honda's plant in Vietnam

TOKYO (UPI): Asian Honda Motor Co. Ltd. announced yesterday it has signed a joint venture agreement for the manufacture and sale of motorcycle parts in Vietnam.

The new joint venture, which will employ about 200 people, is expected to produce motorcycle mufflers, shift pedals, rims and brake pedals, Yo Harada, a spokesman for Honda Motor Co. in Tokyo, said.

Asia Honda Motor Co. and partners Goshi Giken Co. Ltd., Thang Long Auto Parts Co. and Honda Trading Corp. plan to invest a total of $13.8 million in the new joint venture company, with production slated to begin by late next year.

The company initially plans to produce parts for 200,000 motorcycles, which are to be manufactured starting in 1998 by a Honda Vietnam plant currently under construction.