Russian car priced at 300 million VND is about to be sold in Vietnam

With tax incentives, UAZ off-road vehicles, Kamaz or Gaz commercial vehicles with cheap prices will create a new breeze for the Vietnamese automobile market.

On March 21, the Russian and Vietnamese governments signed an automobile protocol paving the way for Russian automakers such as Kamaz, Gaz, and UAZ to join Vietnamese partners in establishing joint ventures to manufacture and assemble trucks, vehicles with 10 seats or more, off-road vehicles, and some specialized vehicles in Vietnam.

In particular, in the initial period, Vietnam will allow joint ventures to import a number of complete cars tax-free to test market demand. In addition, auto parts and components will also enjoy a tax-free quota for 5 years. The protocol will officially take effect from mid-2016.

The UAZ Patriot model costs about 589,000 rubles in Russia.

In the Russian market, UAZ off-road models are priced from 609,000 to 809,000 rubles, equivalent to about 200 to 276 million VND. If imported into Vietnam, with import tax exemption, it is estimated that the selling price for these models in Vietnam will fluctuate around 300 million VND. This is a cheap price compared to the domestic automobile market.

Talking to Zing.vn about whether cheap Russian cars will gain a foothold in Vietnam in the near future, Mr. Tran Ngoc Quan - Deputy Director of the European Market Department, Ministry of Industry and Trade said that the Protocol creates conditions for Russian car joint ventures to be established, however, the business and selling prices of car models are entirely decided by the businesses.

According to economic expert Ngo Tri Long, in the current era of integration, opportunities for Russian car companies in Vietnam depend on their competitiveness in terms of price, marketing ability as well as product quality. According to the expert, although creating preferential policies, state agencies need to monitor the implementation of policies to develop Vietnam's automobile technology as well as create jobs and ensure a safe environment for workers of Russian partners.

As people who have lived in Russia for many years, Mr. Nguyen Danh Son and Nguyen Vinh (Hanoi) said that Russian trucks and specialized vehicles entering Vietnam will sell well and overwhelm Chinese vehicles thanks to their superior quality. Meanwhile, UAZ off-road vehicles can be sold because people are nostalgic for this type of vehicle and want to own quite a lot. However, according to many car enthusiasts, the quality of models from Russia is not as good as Japanese cars. Therefore, the popularity of these vehicle lines with Vietnamese users in the future is still unknown.

According to Zing