VN successfully negotiates automobile agreements with Russia, Belarus
VN successfully negotiates automobile agreements with Russia, Belarus
Viet Nam has completed negotiations on bilateral agreements on automobile manufacturing and assembling with Russia and Belarus, according to the Ministry of Industry and Trade.
A protocol on automobile production co-operation was initialled by the officials from the negotiating teams of the two countries in Minsk, Belarus, on January 20.
On January 15, Viet Nam also initialled the protocol with Russia in Moscow.
The ministry said the protocols would be negotiated and signed based on the priority clauses of investment projects under the free trade agreement between Viet Nam and the Eurasia Economic Union (VN-EAEU FTA).
After initialling the above-mentioned protocols, Russia and Belarus have both informed that they would immediately conduct procedures to pass the VN-EAEU FTA and put the protocols on automobile co-operation into effect at the same time.
The protocols include co-operation between Russian and Belarusian automakers and their Vietnamese partners in establishing several joint ventures for manufacturing and assembling of trucks, and vehicles with ten seats and more, pick-ups and some special-use vehicles, in Viet Nam.
The vehicles assembled in Viet Nam will be suitable for the Viet Nam Automobile Industry Development Plan by 2020 and in the vision for 2030, which requires a localisation rate of 25 per cent for special-use vehicles, 30 per cent for trucks and pick-ups, and 35 per cent for vehicles with 10 seats and more, by 2020.
By 2025, the localisation rate will be 40 per cent for special-use vehicles and pick-ups, 45 per cent for trucks and vehicles with ten seats and more.
Besides the domestic market, the joint ventures have been oriented to export cars to a third country, which are Southeast Asian nations where the cars with 40 per cent localisation rate from Viet Nam will enjoy import tax exemption.
To reach the above target, Viet Nam will allow the joint ventures to import free-of-duty a number of completely built up units for exploratory selling in the Vietnamese market. They will also enjoy a concrete tax exemption quota for the import of auto components and parts for domestic assembling in five years, which is the period before the import tax on auto components and parts is cut to zero per cent under the VN-EAEU FTA agreement.
The protocols are expected to officially be signed by the end of January or early March this year.
