Vietnam dreams of developing auto industry, with Russia’s support
Russia once helped Vietnam manufacture weapons and now may transfer automobile technology to Vietnam, experts say.
Bui Danh Lien, chair of the Hanoi Transport Association, puts high hope on the Vietnam-Russia automobile joint ventures to be set up in the future, saying that the cooperation will bring benefits to both parties.
Vietnam hopes the joint ventures would help it develop the automobile industry. Russia can find in Vietnam a large market where consumers think Russian products are durable and have reasonable selling prices.
However, some analysts still doubt the Vietnam-Russia joint ventures will help.
Lien said Vietnam now can make tyres, electrical wires and many other things. However, it still cannot make engines. If Russia helps Vietnam make engines, the biggest problem of Vietnam’s automobile industry will be settled.
Vinaxuki, a 100 percent Vietnamese automobile enterprise, had to shut down because it focused on making chassis and other items, while it could not make engines. It had to import engines at high prices.
“If Russia helps Vietnam make engines and develop mechanical engineering, developing supporting industries will not be an overly difficult task for Vietnam,” Lien said.
A question has been raised if Russia would transfer the technology of making engines to Vietnam. Japanese, South Korean and European automobile manufacturers did not transfer technologies to Vietnam because the technologies are know-how they must protect.
However, Lien believes that Russian manufacturers will transfer technologies.
“Russia is a loyal partner of Vietnam. The two sides have confidence in each other,” he explained.
He believes that the joint ventures between Vietnam and Russia would succeed, because Russia has reasons to develop cooperation with Vietnam.
It hopes Vietnam could serve as the bridge that helps it expand business with South East Asian countries and enjoy preferences from the TPP (Trans Pacific Partnership Agreement) of which Vietnam is a member.
Nguyen Van Nam, a renowned trade expert, agreeing with Lien, said Russia and Belarus have goodwill when cooperating with Vietnam and that they do not just run after profits like other investors.
Nam noted that Russia once helped Vietnam set up some mechanical engineering factories in Vietnam.
Vietnam hopes the joint ventures would help it develop the automobile industry. Russia can find in Vietnam a large market where consumers think Russian products are durable and have reasonable selling prices.
However, some analysts still doubt the Vietnam-Russia joint ventures will help.
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In fact, Vietnam once put high hopes on the joint ventures with the US, Japan and the Republic of Korea. However, it still failed to develop the automobile industry.
Therefore, they have reasons to warn that the same thing will happen with the joint ventures with Russia.Lien said Vietnam now can make tyres, electrical wires and many other things. However, it still cannot make engines. If Russia helps Vietnam make engines, the biggest problem of Vietnam’s automobile industry will be settled.
Vinaxuki, a 100 percent Vietnamese automobile enterprise, had to shut down because it focused on making chassis and other items, while it could not make engines. It had to import engines at high prices.
“If Russia helps Vietnam make engines and develop mechanical engineering, developing supporting industries will not be an overly difficult task for Vietnam,” Lien said.
A question has been raised if Russia would transfer the technology of making engines to Vietnam. Japanese, South Korean and European automobile manufacturers did not transfer technologies to Vietnam because the technologies are know-how they must protect.
However, Lien believes that Russian manufacturers will transfer technologies.
“Russia is a loyal partner of Vietnam. The two sides have confidence in each other,” he explained.
He believes that the joint ventures between Vietnam and Russia would succeed, because Russia has reasons to develop cooperation with Vietnam.
It hopes Vietnam could serve as the bridge that helps it expand business with South East Asian countries and enjoy preferences from the TPP (Trans Pacific Partnership Agreement) of which Vietnam is a member.
Nguyen Van Nam, a renowned trade expert, agreeing with Lien, said Russia and Belarus have goodwill when cooperating with Vietnam and that they do not just run after profits like other investors.
Nam noted that Russia once helped Vietnam set up some mechanical engineering factories in Vietnam.
The factories have been abandoned by Vietnam over many years. Now if Russia returns to revive the factories, it may help improve the current situation in Vietnam.
