Vietnam and Russian have inked an agreement to allow Russian export automobiles and car kits into Vietnam.
As per the agreement, three Russian producers, GAZ Group, KAMAZ and Sollers, will be eligible for duty-free import of automobiles and car kits into the country.
The total quota for the import of cars into Vietnam will be 2,550 units over three years and 13,500 car kits over five years. The localization of production is set to be between 40 and 50 percent by 2025.
The agreement is the first cooperation project in the framework of the free trade agreement (FTA) negotiations signed in 2015 by Eurasian Economic Union and Vietnam.
By the end of this year, Russia will be able to transport 800 units free of duty to Vietnam.
The Russian Ministry of Industry and Commercial said that the agreement not only helps increasing commercial exchange between Russia and the Southeast Asian country but also allows exports of vehicle parts and open a new market for Russian commodities to enter the Asian market.
