Russian truck manufacturers to open joint ventures to drive business in Vietnam

Russian automobile manufacturers specializing in trucks and off-road vehicles have set their sights on establishing joint ventures to expand their production in Vietnam.

The joint ventures are expected to create partnerships with major Russian producers such as Kamaz, Gaz and Uaz to develop Vietnam’s automobile industry and expand its supply to the 640-million strong Southeast Asian market, according to an agreement signed by Vietnam’s trade ministry and the Russian embassy in Hanoi on Wednesday.

They will be allowed to import 2,550 automobiles, mostly trucks, off-road vehicles and cars of 10 seats or more, and 13,500 sets of assembly parts tariff-free between 2018 and 2022 to test the market's capacity.

Trade Minister Tran Tuan Anh said the tax exemption will allow the joint ventures to use Russian expertise and technology at a low cost.

Vietnam and Russia’s trade revenue reached more than $3.2 billion in the first 11 months of this year, up 27 percent from a year ago, but still far below the countries’ target of $10 billion set for 2020.