09:43 | 26/03/2016 Cooperation
Việt Nam and Russia signed an inter-governmental protocol on supporting the production of motor vehicles in the Southeast Asian country.
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
The protocol was signed between Minister of Industry and Trade Vũ Huy Hoàng and his Russian counterpart Denis Manturov during Hoàng’s visit to Russia which concluded on Tuesday.
The document was negotiated and signed based on the priority clauses of investment projects under the free trade agreements between Việt Nam and the Eurasian Economic Union (EAEU). Under the agreement, 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 Việt 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.
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 Việt Nam and EAEU, thus helping 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 Việt Nam manufacture automobiles but also to export cars to other countries.
Minister Hoàng said Việt Nam had long hoped to manufacture automobiles in the country with a significant amount of local supplies.
The establishment of a joint-venture project on assembling and manufacturing automobiles in Việt Nam forms part of the FTA signed with the EAEU in May 2015, and the automobile industry’s planning strategy, he said.
Hoàng said if the project was successfully carried out under this commitment, Russia would transfer its technology to Việt Nam. After a short period, the rate of local supply will reach 40 per cent and will regularly increase over the next few years./.