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Official Gazette

Wednesday, September 20, 2017

Vietnam, EEU sign free trade agreement

Updated: 15:33’ - 01/06/2015

Prime Minister Nguyen Tan Dung and his counterparts from the Eurasia Economic Union (EEU)’s member states on May 29 inked a free trade agreement (FTA) between Vietnam and the EEU, opening up a new chapter in the cooperation relationship between Vietnam and the Union in general as well as each EEU member state in particular. 

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Prime Minister Nguyen Tan Dung signed the free trade agreement between Vietnam and the Eurasian Economic Union in Kazakhstan on May 29__Photo: VNA

 

Launched in Hanoi on March 28, 2013, the agreement covers chapters relating to trade in goods, rules of origin, trade remedies, trade in services, investment, intellectual property, technical barriers to trade, legality and institution, among others. 

Under the agreement, the EEU will offer opportunities for Vietnam’s export of agricultural products, textiles and garments, leather footwear, woodwork and processed products.

Worthy of note, the agreement says that a zero percent tax rate will apply to all Vietnamese aquatic exports.

The EEU and Vietnam are expected to open markets for their goods accounting for over 90 percent of their two-way trade turnover. Once the agreement becomes effective, the bilateral import-export turnover is expected to reach USD 10-12 billion by 2020, a surge from USD 4 billion in 2014; and Vietnam’s export turnover to the Union is estimated to increase 18-20 percent annually. 

Speaking at the signing ceremony, Prime Minister Dung said Vietnam, as an active member of the ASEAN, would do its best to assist the EEU in extending its relations with the ASEAN Community, a market with over 600 million people and a GDP of about USD 2.5 trillion.

He also noted that Vietnam was speeding up negotiations for FTAs with major partners, which would create favorable conditions for businesses from EEU’s member states to invest in Vietnam and benefit from opportunities to access such markets as the US, China, Japan, EU and Australia.

Russian Prime Minister Medvedev emphasized the importance of the agreement, saying it would contribute to the economic development of each country, enhance bilateral trade, service and investment relations and expand regional cooperation.-

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