Business news

MINSK, 22 June (BelTA) - The first stage of the MAZ-Asia plant in Vietnam will go operational in September 2018, Director General of MAZ, the managing company of Belavtomaz Holding Company Dmitry Katerinich told the media ahead of the 14th meeting of the Belarusian-Vietnamese intergovernmental commission on trade, economic, and sci-tech cooperation on 22 June, BelTA has learned.

“World engineering markets are protected by high customs duties. Therefore, the EAEU and Vietnam concluded an agreement that envisaged a new joint venture and a quota of duty-free deliveries of our trucks, buses and vehicle sets to Vietnam. We launched duty-free shipments to Vietnam, concluded several contracts worth more than $18 million. In September 2018, the first stage of the joint truck producing plant MAZ-Asia will go online,” said Dmitry Katerinich.

When asked about the production capacity of the first stage of the plant, he said: “If it is necessary, the plant will work in two or three shifts. While visiting Vietnam, the Belarusian delegation concluded contracts on the delivery of more than 1,100 vehicles.”

As for the plans for the second stage of the joint venture, he noted that preliminary agreements were reached on a transition period of 18 months. “Vietnam has changed its legislation. During today’s meeting we are going to consider the issue of granting a transition period. The legislation has significantly increased the requirements for localization and technological operations. Additional investments are needed in order to comply with the new rules. The government has agreed to meet us halfway and provide a transition period for the joint venture MAZ-Asia,” the MAZ general director said.

The plant will sell its products to the Vietnamese market, and also to Cambodia, Laos, Malaysia, Indonesia and other countries of the region.

Another project is under consideration to set up a joint venture to produce passenger vehicles. “We are currently considering the possibility of setting up a joint venture with the participation of Belarusian capital. It is possible that buses will be assembled at the joint venture MAZ-Asia,” said Dmitry Katerinich. “The first batches of MAZ buses have already been delivered to Vietnam and tested there. Vietnamese partners are satisfied with the product,” he added.