EAEU – Vietnam FTA achieves positive outcomes

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Vietnamese Ambassador to Russia Ngo Duc Manh

The seminar aims to review the enforcement of the agreement since it came into effect on October 5, 2016 and to assess both opportunities and challenges on each side in order to increase its effectiveness in the coming years.

Addressing the seminar, Vietnamese Ambassador to Russia Ngo Duc Manh affirmed that signing the agreement is a historic event as Vietnam became the first international partner to sign the FTA with the Union. This agreement creates a motive for each country to boost its economic development, enhance trade, increase the exchange of services, forge deeper bilateral investment and expand regional cooperation ties. Participants at the seminar focused their discussions on trade cooperation between Vietnam and the EAEU within the framework of the agreement, the role of the agreement in enhancing trade cooperation between Vietnam and EAEU nations, particularly Russia, and challenges and difficulties for Vietnamese businesses when entering the EAEU markets. In addition, they proposed measures to remove obstacles during the process and evaluated prospects of further trading ties between the two sides.

Those from each side of the trade agreement believe that both sides have made some important achievements, evidence for this being in an increase in two-way trade value. According to the statistics of the Vietnam Customs, bilateral trade value between Vietnam and the EAEU increased from US$3.04 billion in 2016 to US$3.9 billion in 2017.

Delegates also pointed out some obstacles that hindered closer economic cooperation such as bilateral payment in domestic currencies, long geographic distances, a lack of information about investment, as well as business and market policies.

Participants at the seminar

To further boost bilateral trade ties, participants suggested more special measures, for example it is imperative for governments and businesses from both sides to take full advantage of the EAEU – Vietnam FTA, whilst businesses must improve the quality of their products to increase competitive edges. In addition, the two sides should accelerate the signing of big projects and contracts to make further breakthroughs in bilateral investment and trade cooperation ties.

The seminar took place on the threshold of the 21st meeting of the Vietnam-Inter-Governmental Committee for Economic-Commercial and Scientific-Technological Cooperation.