December 18, 2017 10:06

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Vietnam-Eurasian Economic Union FTA helps spur economic growth

20:41 | 06/10/2017

Ambassadors of the the Eurasian Economic Union member countries,including Russia, Belarus, Kazakhstan, and Armenia gathered on October at a press conference marking the 1st year enforcement of the Vietnam-Eurasian Economic Union Free Trade Agreement (VN-EAEU FTA).

vietnam eurasian economic union fta helps spur economic growth

In his speech, Kazakh Ambassador Beketzhan Zhumakhanov said among the EAEU countries, Kazakhstan has enjoyed the biggest trade growth with Vietnam, with two-way trade hitting US$364.7 million in the January-August period.

Belarusian Ambassador to Vietnam Vladimir Goshin stated that Vietnam exported US$37 million 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 recorded a balanced trade turnover as Belarus had previously run a trade surplus with Vietnam, he said, noting that Vietnamese businesses have availed themselves of advantages presented by the deal to bolster exports.

Meanwhile, Russian diplomat Konstantin Vnukov said between October 2016 and April 2017, the export-import turnover between the EAEU and Vietnam soared by 28%.

The reduction of import tariffs has offered more favourable conditions for the export of wheat flour, corn, fertilizers and metals from the EAEU countries to Vietnam, he said.

The EAEU diplomats underlined the need for the countries to promote dialogues and cooperation with businesses by intensifying visit exchange and participation in fairs and exhibitions.

The Vietnam-EAEU FTA was signed in Burabay, Kazakhstan, on May 29, 2015 and came into force on October 5, 2016.

Under the deal, Vietnam will remove import tariffs on 59% 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% of goods will be gradually reduced to zero % in the transitional period.

The average level of Vietnam’s duties on EAEU goods will fall from 10% to 1% while EAEU’s average import tariffs on Vietnam’s goods will go down from 9.7% to 2% in 2025.

The tax removal is expected to boost 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 easier access to the EAEU market.

Dang Hoang Hai, Director of the European Market Department under the Ministry of Industry and Trade, said the deal has added impetus to cooperation between Vietnam and the countries in multiple fields. Through the deal,Vietnam and the EAEU will increase the types of commodities exported to their respective markets, he added.

Source: VOV