This was according to a Protocol on supporting Russia's production of motor vehicles in Vietnamese territory signed between Vietnamese Minister of Industry and Trade Vu Huy Hoang and Russian Minister of Industry and Trade Denis Manturov in Russia on March 21.

Minister Manturov said that the signed document is the first project of bilateral co-operation aiming to develop the free trade agreement between Vietnam and Eurasian Economic Union (EAEU).

The document also aims to consolidate the trade and industry relations between the two countries, increasing the revenue of industry and investment products, the Russian Minister added.

Under the Protocol, 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 localisation rate of production will be 40-50% by 2025.

Russian manufacturers will enjoy free duties for the import of cars and car kits into Vietnam which will help increase the export of Russian automobiles and open opportunities for Russian firms to penetrate ASEAN countries.

Vietnamese Minister Hoang said Vietnam is looking to produce made-in-Vietnam automobile products with a high rate of localisation. The establishment of joint-venture projects on the manufacturing and assembly of vehicles in Vietnam is of strategic significance to the Vietnam's automobile industry, he noted.