Eurasian Economic Union-Vietnam FTA: Creating engine for Vietnam-Russia trade development

14:18 | 28/06/2015 Trade

(VEN) - In a talk with Vietnam Economic News’ Nguyen Huong, Russian Embassy in Vietnam Counselor Igor S. Bayazov said, “The Eurasian Economic Union-Vietnam Free Trade Agreement (EEUV-FTA) will create a breakthrough to promote economic cooperation between Russia and Vietnam in order to drive towards trade turnover of US$10 billion by 2020.”

Eurasian Economic Union-Vietnam FTA: Creating engine for Vietnam-Russia trade development

What cooperation results have Vietnam and Russia achieved?

Since establishing the comprehensive strategic partnership in 2012, Vietnam and Russia have had a series of cooperation mechanisms. We are very pleased to note that cooperation in all areas had positively developed. Trade turnover between the two countries reached US$3.75 billion in 2014 and this figure is expected to stand at US$10 billion by 2020 thanks to the signing of the EEUV-FTA on May 29, 2015.

The two countries have major projects which are being developed in Russia and Vietnam such as Gazprom, Rosneft, Rusvietpetro and Gazpromviet’s oil and gas, power projects. We will try to create favorable conditions for businesses of the two countries to expand operations.

Regarding educational cooperation, nearly 5,000 Vietnamese students have annually studied in Russia and the number of scholarships for Vietnamese students has increased from 200 in 2007 to 800 in 2015, even to 1,000 by 2018.

How will the EEUV-FTA affect trade and economic relations between the two countries?

The EEUV-FTA is a comprehensive agreement, so it will promote its key role. The signing and implementation of the EEUV-FTA is seen as an important step forward, contributing to bringing the Russian-Vietnamese relationship to new heights.

The Eurasian Economic Union (EEU) will immediately exempt Vietnamese key categories of goods from taxes such as agricultural products, seafood, garments and textiles, leather and footwear, furniture and electronics. Vietnam will also open its market with a roadmap for some livestock products, machinery and equipment and vehicles from the EEU. In addition to exports, opportunities will be provided for investment sectors and services, contributing to benefiting the two parties.

Russia wants to create all favorable conditions for the two countries to promote cooperation, improve the business environment and remove complex administrative barriers. In addition, Russia attaches special importance to Vietnamese businesses who would like to expand operations in Russia. Therefore, prospects for cooperation between the two countries remain huge.

What sectors will Russia prioritize to promote cooperation with Vietnam?

The two countries have established close and long-term political relationship. However, economic cooperation results have not been commensurate with potential. The two sides need to perform a series of key tasks to create a breakthrough in economic cooperation. We hope that the signing of the EEUV-FTA will promote the exchange of goods, services, investment, technology and skilled human resources.

To make the most of the opportunities from the EEUV-FTA, Russia is determined to expand cooperation with Vietnam in traditional fields, especially oil, gas and energy. The two sides will cooperate to expand and upgrade the Dung Quat Oil Refinery and work together to construct the Ninh Thuan 1 Nuclear Power Plant. 

In addition to the 17 joint projects with total investment capital of more than US$20 million focusing on engineering, energy, mineral mining and light industry, Russia will foster an increased number of its investment projects in Vietnam which exceeded 100 with total capital of almost US$2 billion in 2014.

The two countries have much potential to promote economic, trade and investment cooperation. We will make greater efforts to bring the Russian-Vietnamese relationship to new heights.

Nguyen Huong