Vietnam-EAEU FTA gives boost to economic, trade ties

Export potentials 15:33 16/10/2017
The Vietnam-Eurasian Economic Union Free Trade Agreement (VN-EAEU FTA) has created a strong momentum for economic and trade ties among the signatories, said EAEU diplomats.

The ambassadors of the EAEU member countries, namely Russia, Belarus, Kazakhstan and Armenia, shared the view at a press conference in Hanoi on October 5 to mark one year since the pact took effect.

Belarusian Ambassador to Vietnam Vladimir Goshin said that Vietnam’s exported 37 million USD worth of products to Belarus in the first eight months of 2017, the same amount as Belarus’s exports to the Southeast Asian nation.

This is the first time the two countries have seen a balanced trade turnover as Belarus had previously run a trade surplus with Vietnam, he said, stressing that Vietnamese businesses have been making the most of advantages offered by the deal to boost exports.

Kazakh Ambassador Beketzhan Zhumakhanov said among the EAEU countries, Kazakhstan has experienced the biggest trade growth with Vietnam, with two-way trade reaching 364.7 million USD in the January-August period, nearly equivalent to the figure of 366.2 million USD for the whole 2016.

Russian Ambassador Konstantin Vnukov told participants that between October 2016 and April 2017, the export-import turnover between the EAEU and Vietnam rose by 28 percent.

The reduction of import tariffs has facilitated the export of wheat flour, corn, fertilizers and metals from the EAEU countries to Vietnam, he added.

Dang Hoang Hai, Director of the European Market Department under the Ministry of Industry and Trade, said the deal has created an impulse for cooperation between Vietnam and the countries across fields.

He noted his hope that through the agreement, Vietnam and the EAEU will increase the types of commodities exported to each other’s markets.

The ambassadors held that to uphold the positive results, the countries should enhance dialogues and cooperation with businesses by increasing the exchange of visits and participation in fairs and exhibitions.

The Vietnam-EAEU  FTA was inked in Burabay, Kazakhstan, on May 29, 2015 and took effect on October 5, 2016.

Under the agreement, Vietnam will remove import tariffs on 59 percent of the total tax lines on goods from the EAEU, including meat products, wheat flour, alcohol, mechanical equipment and steel products. The tariffs on another 30 percent of goods will be gradually reduced to 0 percent in the transitional period.

The average level of Vietnam’s duties on EAEU goods will drop from 10 percent to 1 percent, while EAEU’s average import tariffs on Vietnam’s goods will be reduced from 9.7 percent to 2 percent in 2025.

The tax removal is expected to spur the EAEU’s export of agricultural and industrial products to Vietnam, and vice versa, Vietnam’s farm produce, garment, bags and electrical devices will have better access to the EAEU market.

At the same time, businesspeople of both sides will have opportunities to take part in joint projects in the EAEU countries and Vietnam.

Source: VNA

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