Business news

MINSK, 23 March (BelTA) – Two joint ventures to produce Belarusian buses and trucks will be set up in Vietnam to supply the products to the Vietnamese and ASEAN markets. It is stipulated in the intergovernmental protocol on the production of motor transport vehicles that was signed in the Industry Ministry of Belarus on 23 March, BelTA has learned.

The document was signed by Belarus’ Industry Minister Vitaly Vovk and Minister of Industry and Trade of Vietnam Vu Huy Hoang. The protocol made part of the free trade agreement between Vietnam and the Eurasian Economic Union.

According to Vitaly Vovk, the protocol spelled out quotas on assembling organization. “I am confident we will be able to reach 40% of localization of the production by 2020. This will help our products enter the market of all ASEAN member states,” he said.

The signing of the protocol is the first step that will help Belarusian companies gain a stronger footing on the market of Southeast Asia. Such cooperation is sought by many industrial companies, including Minsk Automobile Plant, Minsk Motor Plant, Minsk Tractor Works, Gomselmash, Bobruiskagromash. Belarus is ready not only to offer its series-produced products but also design new products for the concrete market, stressed Vitaly Vovk.

In turn, Vu Huy Hoang noted that Vietnam knows well the advantages of the Belarusian equipment and has a rich experience in its exploitation. The signed protocol will become the next step in making the industries of the two countries closer to each other, satisfying Vietnam’s needs in buses and trucks and promoting the local industrial potential.

The heads of the ministries also discussed the issues related to the development of bilateral relations between the two countries, prospects of their strengthening and raising mutual trade. Belarus and Vietnam plan to reach $500 million in bilateral trade in the near future. Industry will play its role in it as well. In 2015 the export of the Industry Ministry to Vietnam exceeded $16.8 million and increased by more than 2.5 times in 2014. The main exports of the ministry are rock haulers and diesel engines, tractors and bearings.

The Vietnamese delegation led by the Minister of Industry and Trade is in Belarus on a working visit on 22-24 March. The delegation includes representatives of the ministries of industry and trade, planning and investment, finance, justice, transport, science and technology. On 23 March the Vietnamese delegation is expected to visit Minsk Motor Plant to get familiar with the production of diesel engines and new products of the company.