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Minister of Industry and Trade Vu Huy Hoang (right) and his Russian counterpart Denis Manturov at the signing ceremony of intergovernmental protocol in Moscow. — Photo vov
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HA NOI (Biz Hub) — Viet Nam and Russia signed an intergovernmental protocol on supporting the production of motor vehicles in the Southeast Asian country.
The protocol was signed by Minister of Industry and Trade Vu Huy Hoang and his Russian counterpart Denis Manturov in Moscow on March 21.
The document was negotiated and signed based on the priority clauses of investment projects under the free trade agreements between Viet Nam and the Eurasian Economic Union (EAEU). Its contents show that Russian vehicle manufacturers such as KAMAZ, GAZ and UAZ will co-operate with their Vietnamese partners to set up several joint ventures to manufacture and assemble trucks, cars with 10 seats and above, crossover utility vehicles (CUV) and a number of special-use vehicles.
The two sides have pledged to assemble cars under Viet Nam's planning on automobile industry development by 2020, with a vision towards 2030. Of this, the local supply rate will be 25 per cent for the special-use vehicles, 30 per cent for trucks and CUVs and 35 per cent for cars with 10 seats and above by 2020.
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The two sides have pledged to assemble cars under Viet Nam's planning on automobile industry development by 2020, with a vision towards 2030. — Photo vietq.vn
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By 2025, the local supply rate is set to reach 40 per cent for special-use vehicles and CUVs, and 45 per cent for trucks and cars with 10 seats and above.
Speaking at the signing ceremony, Minister Manturov said the protocol was seen as the first bilateral project to develop the free trade agreement (FTA) between Viet Nam and EAEU, thus helping to increase the trade turnover between the two countries in industrial investment and production.
He said the signing of the protocol would create more jobs for Vietnamese workers, not only helping Viet Nam to manufacture automobiles but also to export cars to other countries.
Minister Hoang said Viet Nam had long hoped to manufacture automobiles in the country with a significant amount of local supplies.
The establishment of joint-venture projects on assembling and manufacturing automobiles in Viet Nam forms part of the FTA signed with the EAEU in May 2015, and the automobile industry's planning strategy, he said.
Hoang said if the project was successfully carried out under this commitment, Russia would transfer its technology to Viet Nam. After a short period, the rate of local supply was expected to reach 40 per cent and wouldl regularly increase over the next few years.
The Vietnamese minister had a working session with EAEU Minister in charge of Trade Veronika Nikishina on the same day.
The minister had led a Vietnamese delegation on a visit to Russia from March 20 to 22. He was scheduled to visit Belarus on March 23. — VNS