Vietnamese Manufacturer Of Old BMWs Wants Not Only To Sell Them In Russia, But Also To Produce

The first Vietnamese car manufacturer VinFast plans to enter the Russian market. The company wants to start deliveries of cars already in 2020, and later intends to organize production in Russia, Kommersant reports.

• The Ministry of Industry and Trade asserts that "no specific proposals for the model range, let alone localization of production, have been received." However, in the summer of 2019, the company already tried to establish cooperation with the GAZ group, but due to sanctions imposed on the Russian manufacturer, negotiations were suspended.
• VinFast produces cars based on the platform of old BMW models. These are the Lux A2.0 sedan and the Lux SA2.0 crossover, built on the basis of the BMW 5-series (F10) and BMW X5 (F15), respectively. Their design has already been patented in Russia.

• The company's first factory opened in June 2019 in Haiphong City. Its design capacity is 250 thousand vehicles per year. Also in the home market, VinFast is the exclusive distributor of the Chevrolet brand and owns a General Motors plant in Hanoi. In addition to the flagship models, the company produces a redesigned version of the Opel Karl hatchback called VinFast Fadil.

Pham Nyat Vyong, head of the Vingroup holding (which includes VinFast), studied in Moscow and was also involved in the instant noodle business in Ukraine in the 90s. The Russian market is of interest to the manufacturer, also because there is an agreement on a free trade zone between Vietnam and the Eurasian Economic Union, which includes Russia - it gives some preferences in trade relations.