Honda Vietnam on July 25 announced its plan to build the third motorcycle plant in the Southeast Asian country to expand its annual capacity by 500,000 motorcycles.

The production expansion is aimed at accommodating consistent and rapidly growing demand of the motorcycle market in Vietnam .

The 120-million USD factory will be build in the Red river delta province of Ha Nam and is expected to open in the second half of next year.

Honda has so far reached a total capacity of 2 million motorbikes this year from its two existing plants in Vinh Phuc province, northwest of the capital city of Hanoi .

Honda Vietnam Co. Ltd. began production in 1997. Japan 's Honda Motor has a 42 percent stake in the firm./.