ECONOMYTRADE - SERVICE

One year after signing Vietnam – EEU FTA: Driving force for economic growth

Updated at Tuesday, 07 Nov 2017, 08:20
The Hanoitimes - One year after the Vietnam – Eurasia Economic Union Free Trade Agreement (Vietnam – EEU FTA) came into effect on October 2016, both two sides have achieved positive results.
As such, in Quarter I 2017, trade value between Vietnam and EEU has increased 29.4% compared to Quarter I 2016. In the first 8 months of 2017, Vietnam export to member countries in EEU has increased 37%, while EEU export to Vietnam also increased 32%. In which, agricultural export increased 9-folds, metal export increased 48%. Vietnam’s supply of positional devices to EEU increased 900-fold. 


EEU has remove import tariffs for 43% of total Vietnamese goods under a common single tariff of EEU, which is mainly chemical products, mineral resources and leather products. Other goods and products are applied with 0% import tariffs. 

Russia currently stands at 17th among countries investing in Vietnam, in which 20 projects of Vietnam being implemented in Russia. As such, TH True Milk of Vietnam has invested 3 billion USD into projects of producing and processing milk in the suburb area of Moscow, Kaluga province and the eastern province of Russia. TH True Mik also expects to construct a milk producing facility in Russia with capacity of at least 500 tons per day. A Russian – Vietnamese joint venture company Rusvietpetro has also increase its capacity in extracting oil in the far north of Russia. 

Vietnam and Belarus has signed Memorandum of Understandings to allow the automobile company Minks to establish 2 joint ventures in Vietnam, which focus on truck and bus assembling. Moreover, companies from Vietnam and Kazakhstan are working on a transport corridor between the two countries. 

In the future, Vietnam – EEU FTA will bring more benefits and advantages for all parties involved. Another motivation for this prospect is the Asian Pacific Economic Corporation (APEC) Economic Leaders’ Week, which is taking place in Danang, Vietnam from November 6 – 11, 2017. Vietnam and Russia are strategic partners, in reality, this relationship is reflected through both countries’ activities in international ground, including APEC. Both countries have expressed supports for their initiatives toward the economic prosperity and of the Asia – Pacific region. Vietnam and Russia have had big expectation for the APEC meetings. With this being said, many conferences and workshops have been held in both Vietnam and Russia before the APEC Economic Leaders’ Week. 

These conferences have analyzed different aspects in APEC’s activities, current status and prospects for trade – economy of Vietnam and Russia with other countries in Asia – Pacific region. Experts have highly regarded the comprehensive strategic partnership between Vietnam – Russia, as well as positive results and valuable initiatives of both countries in APEC’s framework. APEC has become more and more important for economic growth of countries in region, as well as prospect to improve the strategic partnership between Vietnam and Russia. 

APEC Economic Leaders’ Week 2017 will officially be convened in Da Nang from November 6 - 11, with the participation of leaders from 21 economic members, more than 10,000 representatives from Vietnam and abroad (in the meeting of enterprises there will be 3,000 representatives), along with thousands of reports from all over the world. As such, this will be the biggest foreign affair event in Vietnam in recent years, which marks an important mile stone in the process of Vietnam’s extensive regional and global integration. 
 
Nguyen Tung