GAZ Group presents its new designs at the 2015 Construction Equipment and Technologies Exhibition. (Photo: sputniknews.com)
Russian automakers Gaz, Kamaz and Sollers will establish a plant to assemble and produce cars in Vietnam, under a deal recently signed between Hanoi and Moscow, Russian government-run RT reported.
The Vietnamese plant will churn out buses, trucks, specialized vehicles, light commercial vehicles and passenger cars.
According to the Russian Ministry of Industry and Trade, automakers from Russia will be given an import quota of automobiles and car parts duty-free into Vietnam.
“That will allow increasing exports of vehicles and open new markets for Russian products with the prospect of entering the ASEAN market,” said the ministry.
The localization ratio could reach 40%-50% by 2025. Russia will be able export 800 motor vehicles to Vietnam duty-free this year, said the ministry.
The agreement is the first joint project as part of a free trade agreement signed last year between the Eurasian Economic Union and Vietnam.