Kazakhstan-Vietnam trade doubles

09:34 | 06/11/2017 Trade

(VEN) - In the year since the Vietnam-Eurasian Economic Union Free Trade Agreement (VN-EAEU FTA) went into effect, trade and investment relations between the two sides have achieved promising results. Trade relations between Vietnam and Kazakhstan have seen the most impressive growth among the five EAEU member states.

kazakhstan vietnam trade doubles

Kazakh Ambassador to Vietnam Beketzhan Zhumakhanov told participants at a press conference in Hanoi on October 5 to mark the pact’s first anniversary that trade turnover between Kazakhstan and Vietnam from October 2016 to July 2017 more than doubled.

According to data he presented, two-way trade reached US$364.7 million in the January-August period, nearly equivalent to US$366.2 million for the whole of 2016. The growth in trade is attributed to increased exports of goods from Kazakhstan to Vietnam. Kazakhstan exported US$192.9 million worth of crude lead and zinc, non-alloy steel to Vietnam and imported US$171.8 million worth of mobile equipment, office and home appliances, garments and textiles, footwear, food and seafood.

According to Beketzhan Zhumakhanov, economic and trade cooperation between Vietnam and Kazakhstan has seen growth, but the results were modest in comparison to the potential.

One of the promising cooperation areas between the two countries is agriculture. “We occupy the top spot in the world for grain and flour production, livestock and dairy products. In the future, Kazakhstan could export to Vietnam a range of agricultural products that cannot be grown in a tropical climate,” the ambassador said.

He added that one of the tools for commercial development is the establishment and development of transportation and logistics. Kazakhstan is modernizing its transport infrastructure and attaches great importance to the development of routes linking Kazakhstan and Southeast Asian countries. In this context, Vietnam and Kazakhstan could work together to create a mutually beneficial transport corridor, both by rail and sea.

To promote trade, the Embassy of Kazakhstan has proposed two goods transportation options to Vietnam’s Ministry of Transport. Cargo could be transported between Vietnam and EAEU nations via China’s railway stations near Vietnam. Alternatively, goods could be shipped to a Chinese port where a Kazakh railway company holds a 49-percent stake before it is transported to Kazakhstan and other member states of the union.

Kazakh Ambassador to Vietnam Beketzhan Zhumakhanov said trade turnover between Vietnam and EAEU countries increased by 11.8 percent from October 2016 to June 2017. Kazakhstan and the other EAEU countries - Russia, Armenia, Kyrgyzstan and Belarus - are trying to develop economic and trade cooperation with Vietnam further.

Huong Nguyen