Vietnam and Belarus to set up car manufacturing joint venturesStaff writer ▼ | March 26, 2016
Belarussian car maker MAZ and Vietnamese partners will establish joint ventures to manufacture and assemble trucks and ten-seater cars in Vietnam.
Auto industry Vietnam will grant duty-free import of parts
The protocol was signed by Vietnamese Minister of Industry and Trade Vu Huy Hoang and Belarusian Minister of Industry Vitali Mikhailovich Vovk, the Department of European Markets announced on March 24.
The Belarussian side pledged that automobiles manufactured by the joint ventures will have domestic content rates of 40% in 2020 and 60% in 2026. Their licences will be provoked if they fail to meet these set targets.
Aside from the Vietnamese market, the joint ventures will also make vehicles for export available to a third country, with countries in Southeast Asia as the first preference.
In order to achieve these targets, Vietnam will allow the joint ventures to import a number of completely assembled cars free of duties in order to further explore the market.
Vietnam will also grant duty-free import of components and accessories for a period of five years before the tax rate is eliminated under the Vietnam-Eurasian Economic Union (VN-EAEU) Free Trade Agreement. ■