Guidance for Viet Nam-Russia joint ventures for motor vehicle production
VGP – Deputy Prime Minister Bui Thanh Son has signed a decision guiding the implementation of the Protocol between the Governments of Viet Nam and Russia on supporting the production of motor vehicles in Viet Nam.
All motor vehicles manufactured by joint ventures for use in the territory of the Socialist Republic of Viet Nam must meet technical requirements according to Vietnamese law.
Each authorized enterprise of Russia shall only be allowed to establish a joint venture in Viet Nam.
The volume of capital contributed by Vietnamese enterprises shall be at least 50% of the total charter capital of the joint venture.
All joint ventures must be established and operate at least 10 years and no more than 30 years.
All authorized enterprises from Russia shall not be allowed to transfer capital in joint ventures to any third party of a third country.
The decision also specifies the ratio of localization for each type of joint ventures by 2025 as follows:
- 40 percent for SUV cars
- 50 percent for vehicles with 10 seats and more, including driving seat.
- 45 percent for trucks.
- 40 percent for specialized vehicles./.
