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Helmet market in Vietnam: HJC far surpasses competitors with impressive revenue and profit

According to a study, the global motorcycle helmet market is forecasted to grow significantly, expected to reach $2,849.11 million in 2023 with a CAGR of 5.38%, and is projected to reach an astonishing level of $4,117.31 million by 2030.


According to the Southeast Asia Motorcycle Helmet Industry Research Report 2023-2032, the motorcycle helmet industry shows different levels of development in various Southeast Asian countries. In particular, Vietnam stands out with a large and rapidly growing market. In 2022 alone, motorcycle sales in Vietnam exceeded 3,38 million units, achieving an impressive growth rate of 18.1% compared to the same period last year. With each motorcycle purchase usually accompanied by at least one helmet purchase, Vietnam's motorcycle helmet sales in 2022 are expected to exceed 3,38 million units.





Since November 2007, wearing a helmet while riding a motorcycle has become mandatory in Vietnam. According to statistics, there are more than 30,000 road traffic accidents in Vietnam each year, causing about 11,000 deaths and more than 38,000 injuries. Of these, over 60% are accidents involving motorcycles, and up to 30% of brain injuries lead to death.


Wearing a quality helmet is very necessary for motorcyclists. Along with the mandatory regulation of wearing quality helmets and the enhancement of public awareness, the quality helmet market has become vibrant and people have started to seek quality helmet stores to buy satisfactory products. A series of big names in the quality helmet market can be mentioned such as Andes, Asia, Nón Sơn, Royal, etc.



Popular types of helmets
Popular types of helmets

HJC


HJC, a renowned helmet manufacturer from South Korea, was established in 1971. Currently, HJC owns three helmet-manufacturing factories in South Korea and Vietnam. It is one of the few helmet companies that have a wind tunnel testing system to check air circulation, ventilation, and noise for helmets.


After a period of construction and development, HJC Vina Co., Ltd. has expanded its factory scale to 50,000 m2, with a capacity of 1,000,000 units per year. 90% of the output is exported to 60 countries around the world, mainly Europe and the United States. The number of company staff and workers has also increased to over 1,000 people, becoming the largest helmet-manufacturing factory of the HJC Group and in the Asia region. With top reputation and quality, HJC has become a sustainable partner with large corporations such as Samsung, Honda, Yamaha, Suzuki, BIDV, Posco, MUJI, and many more in Vietnam.


From 2020 to 2022, HJC’s net revenue maintained a stable growth trend, with an impressive figure of nearly 1,6 trillion VND in 2022, an increase of more than 60% compared to 2020. However, HJC’s after-tax profit showed a significant decrease, only reaching over 26 billion VND in 2022, a decrease of nearly 40% compared to the same period last year.


Non Son


Non Son is a famous and reputable helmet brand in Vietnam, established by Mr. Tran Anh Son in 1996. This brand is not only famous for providing high-quality helmets, but also known for its fashionable and sophisticated design. Each Non Son helmet is crafted from durable ABS plastic, combined with a smart design that includes ventilation holes, providing comfort for the wearer. Non Son is recognized for its optimal protection and effective impact resistance. Although the price is slightly high and the models are not too diverse, Non Son always pays attention to every small detail, bringing the best possible products to customers. From fabric to screws and dye colors, all are imported and go through a strict manufacturing process.


In addition, Non Son not only trades helmet products but also provides many other hat models such as: leather hats, woven hats, Jacket hats, brimmed hats, hand-knitted hats, felt hats, children’s hats, etc., and has received trust and choice from Vietnamese consumers.


The year 2022 witnessed a resurgence in the business performance of Non Son when both net revenue and after-tax profit grew strongly compared to previous years. Specifically, Non Son’s net revenue in 2022 increased nearly 90% compared to the previous year, reaching nearly 260 billion VND. As for after-tax profit, after recording a slight decrease at the end of 2021, in 2022, Non Son’s net profit showed improvement, increasing more than 65% compared to the previous year, reaching over 3 billion VND.


Asia


Asia helmets are a product of Asia Technical Trade Manufacturing Co., Ltd., established in 2008. On September 18, 2020, Asia Company began constructing a leading motorcycle helmet manufacturing factory in Southeast Asia at Hai Son Industrial Cluster, Duc Hoa Dong, Long An. Currently, Asia is distributing four main lines of helmets to the market: full-face helmets, 3/4 helmets, half-head helmets, and children’s helmets. With its reputation and position affirmed, the Asia helmet brand is trusted and chosen by many labels, companies, and large corporations such as VietinBank, VietcomBank, Sacombank, and many more as a partner to produce helmets for employees, as gifts for customers, contributing to effectively promoting the brand.


The business situation of Asia shows that the company is struggling as the company’s net revenue in 2021 showed signs of stagnation and then slightly decreased by 10% to just over 100 billion VND compared to the same period last year. Not only that, the company’s net profit also recorded a large loss in 2021 with a figure of over 3 billion VND and ended 2022 with the profit continuing to be negative.



Net revenue of helmet manufacturing enterprises in Vietnam
Net revenue of helmet manufacturing enterprises in Vietnam

Protec


Protec is a brand of Vietnam Safety Equipment and Products Co., Ltd., a project of the Asia Injury Prevention Foundation. Established in 1999, Protec began manufacturing its first helmets in 2001. This is the world’s first non-profit helmet company, with the goal of not only doing business but also propagating and helping many generations of Vietnamese people raise awareness about traffic safety responsibilities.


Protec has a helmet manufacturing factory in Hanoi, with a system of product distribution stores nationwide and a store in Cambodia. With advanced technology lines and imported machinery systems, Protec’s factory currently has the capacity to produce 5 million helmets each year. Protec company currently has about 300 employees, of which 200 workers work directly at the factory, and 1/3 of them are disabled workers working in the assembly stage.


Similar to Non Son, Protec also recorded a significant improvement in its business situation. Specifically, after the decrease in net revenue in 2021, Protec regained growth momentum in 2022 when net revenue reached nearly 90 billion VND, an increase of nearly 35% compared to the same period last year. Notably, after several consecutive years of losses, by 2022, Protec had made a strong comeback by recording a positive net profit of nearly 5 billion VND.


Royal


Royal helmets are a reputable brand from Vietnam, a product of MAFA VN Manufacturing and Trading Co., Ltd., established in 2015. With the goal of creating the highest quality helmets to meet the increasing demand of consumers, Royal has built a system of more than 2000 agents and is present in most leading retail supermarkets in Vietnam. Not only that, Royal also reaches out to the international market with many large export orders from countries such as the US, EU, Japan, Australia, India, and many others.


The year 2022 was perhaps a successful year for Royal as both the company’s net revenue and after-tax profit recorded remarkable growth. Specifically, Royal ended 2022 with a net revenue increase of over 150%, reaching nearly 90 billion VND compared to the same period in 2021. The company’s after-tax profit also grew impressively, witnessing a net profit of over 4 billion VND, an increase of nearly 140% compared to the previous year.


LS2


LS2 is a renowned motorcycle helmet brand from Spain. After many years of success abroad, LS2 officially launched in Vietnam in 2017 through BBI Import-Export Co., Ltd. By 2020, LS2 Helmets had become an indispensable name in professional motorcycle races in Vietnam. Currently, LS2 Helmet is present in 108 countries worldwide. Some popular product lines include: full-face helmets Ls2 FF805b, Ls2 Valiant II FF900, Ls2 Explorer C MX701, etc.


The net revenue and after-tax profit of LS2 have seen many fluctuations over the years. In 2021, LS2’s net revenue significantly decreased and then regained its recovery momentum, increasing nearly 190%, reaching over 40 billion VND in 2022. On the contrary, the company’s after-tax profit showed negative signs when 2022 recorded a larger loss than the previous year, nearly 460 million VND.


Andes


The helmet brand Andes, produced by Long Huei Vietnam Co., Ltd., officially entered the Vietnamese market in 2001. With over 20 years of experience, Andes has become one of the leading brands in terms of quality and is trusted by consumers. Andes helmets are produced with high-quality criteria, innovative, convenient, and luxurious designs. By 2019, Andes had 15 stores in districts across Ho Chi Minh City and one store in Can Tho. The average output of Andes is 250,000 products per month, of which 30% are consumed domestically and 70% are exported. Andes has become a reputable partner of many organizations, businesses, and big brands such as Suzuki, Yamaha, SYM, Ha Tien cement, etc.


Andes’ net revenue has seen a steady decline over the years, ending 2022 with net revenue of just over 22 billion VND, a decrease of more than 35% compared to 2020. Along with that, Andes’ after-tax profit has not shown signs of recovery as 2022 continues to record a net loss.



Profit after taxes of helmet manufacturing enterprises in Vietnam
Profit after taxes of helmet manufacturing enterprises in Vietnam

Thang Loi


Thang Loi helmet manufacturing company is a leading provider in Vietnam for quality advertising helmets. The company owns a manufacturing factory with an area of up to 1000 m2, using advanced technology and modern machinery. Thang Loi’s helmet products comply with the National Technical Regulation QCVN 2:2008/BKHCN and are licensed to use the CR Conformity mark. Up to now, Thang Loi has been cooperating with many big brands such as Vivo smartphone, OCB Bank, GoViet, and many more to create gift products with high advertising value.


However, although the use of helmets has been improved, the quality of motorcycle helmets is another issue. The Vietnam Consumer Safety Association found that about 80% of helmets on the market do not meet national standards. Motorcyclists often choose cheap helmets, suitable for their fashion style while trying to reduce costs.


The year 2022 saw growth in the net revenue of Thang Loi, however, the company’s after-tax profit showed a contrary trend with a significant decrease. Specifically, Thang Loi showed an improvement in net revenue in 2022, reaching nearly 17 billion VND. However, Thang Loi’s net profit continued to record a loss, with a loss of nearly 900 million VND.


GRS


GRS helmet brand was founded in 1998 by DING LI XING company in Taiwan. GRS not only operates in Taiwan but also expands its distribution network to many other countries, including Vietnam. In Vietnam, GRS established HOANG QUAN Co., Ltd. in Ho Chi Minh City in 2007. GRS distributes its products through a widespread system, from Hanoi to Ho Chi Minh City, and delivers nationwide. The main products of GRS include professional motorcycle helmets and various safety glasses. GRS is especially famous for its half-head helmets, full-head helmets, and helmets with glasses.


GRS’s net revenue in 2021 saw a decrease and then improved back to nearly 15 billion VND in 2022, an increase of more than 36% compared to the same period last year. Along with the improved net revenue, the company’s after-tax profit also grew to over 550 million VND by the end of 2022.


However, despite the improved use of helmets, the quality of motorcycle helmets is another issue. The Vietnam Consumer Safety Association found that about 80% of helmets on the market do not meet national standards. Motorcyclists often choose cheap helmets that suit their fashion style while trying to reduce costs. A state-certified helmet usually costs more than a fake, low-quality helmet that costs only a fraction. Low-quality helmets cannot protect the head in case of a collision. However, the government can have very little impact because the regulations on helmet standards have not yet been included in the current helmet law.


Therefore, considering the inclusion of helmet standard regulations in the current helmet law is also an important step forward. This not only helps protect users but also creates a fair business environment for quality helmet manufacturers. In the future, it is hoped that the quality of helmets will be improved, helping to reduce the number of traffic accidents and save more lives.


Source: Vietdata's 2022 Helmet Market Report.


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