Russia’s major automobile brand AvtoVAZ seeks to enter Vietnam

AvtoVAZ, the biggest automobile producer in Russia, is sending nine automobile models to Vietnam for inspection and licensing, in order to export the cars to Vietnam, Russian Embassy to Vietnam said at press conference on Thursday.

The move is part of AvtoVAZ’s approach to the Vietnamese market, said Viacheslav Kharinov, chief commercial representative of Russia in Vietnam.

Founded in late 1960s, AvtoVAZ is well known for its Lada brand. At the end of September 2024, the company announced its electric vehicle (EV) model Lada e-Largus had entered commercial production.

The production has a localization rate of over 50%, the highest in Russia at the moment. Lada e-Largus will come in two versions: passenger and commercial, with a range of 320 to 420 kilometers.

The chief representative also highlighted Russia’s localization of production in Vietnam, with a notable example of two governments helping the GAZ car assembly plant in Vietnam’s Da Nang city from 2019.

"Over the past five years, GAZ products have gradually strengthened their position in the Vietnamese market and expanded towards exports to regional countries," Kharinov said.

Russian Ambassador to Vietnam G.S. Bezdetko said that since the production line was launched at the end of 2020, the company has assembled and sold around 2,500 units in Vietnam.

The diplomat also highlighted pharmacy-healthcare and information-technology (IT) as two other sectors with significant potential for Vietnam-Russia cooperation.

However, Russian medicines face limited access in Vietnam due to the pharmaceutical management regulations in Vietnam. A solution is to facilitate Russian manufacturers to localize production in Vietnam.

Additionally, Bezdetko highlighted the growing economic-trade ties between the two nations despite sanctions against Russia. The two countries are drafting a comprehensive cooperation plan towards 2030, focusing on trade, investment, industry, energy, transportation, IT, science, and education.

Viacheslav Kharinov pointed out that the strong partnership and the highest political trust are facilitating business ties between Vietnam and Russia.

In the first 11 months of this year, bilateral trade reached $4.15 billion, with Vietnam earning $2.12 billion from exporting to Russia and spending $2.03 billion on importing from Russia.

Russia's main exports to Vietnam include coal, fertilizers, seafood, wheat, and chemicals. Vietnam exports to Russia primarily fabrics, textiles, machinery and equipment, coffee, seafood, and vegetables.