Vmoto stock up on Vietnam deal

Shares in Perth-based Vmoto have closed higher after the company announced it has inked a distribution deal for its electric scooters in Vietnam.

Vmoto said it has signed an exclusive distribution agreement with green vehicle supplier Euro Ebike Company.

The initial contract is for a minimum of 1,200 units to be ordered by August 2015.

Vietnam has the fourth-largest motorcycle market in the world, behind China, India and Indonesia.

About 37 million motorcycles are registered in the country, compared to about 2 million cars.

Vmoto is hopeful electric scooters will become more more popular and acceptable to Vietnamese consumers.

The company has recently made similar inroads into China and Indonesia as it looks to capitalise on growing interest in scooters in those markets.

Vmoto meanwhile announced it is developing a new, super-light scooter which it says could be easily stored at home or the workplace.

The Vmoto 1 scooter will weigh about 48 kilograms, can be folded in 30 seconds and is able to be connected to an Apple iPhone.

Vmoto managing director Charles Chen said he was confident the new model would generate significant interest in the Chinese market.

The company's shares closed the day's trade 13 per cent higher at 5.2 cents.