Vietnam, EAEU mull how to boost trade exchange

09:27 | 21/02/2020 Cooperation

(VEN) - Representatives of the Eurasian Economic Union (EAEU) met with Vietnamese officials recently at the Kazakhstan Embassy in Hanoi to iron out wrinkles in implementing the Vietnam-EAEU Free Trade Agreement and discuss ways of enhancing its benefits for all sides. 

vietnam eaeu mull how to boost trade exchange
Discussion held in Hanoi on promoting cooperation and taking opportunities offered by the Vietnam-EAEU Free Trade Agreement

According to Russian Ambassador to Vietnam Konstantin Vnukov, Russian companies are keen to do business with Vietnam but need a more transparent system to provide them with relevant information about the Vietnamese market. Armenian Ambassador to Vietnam Vagram Kajoyan and Belarusian Ambassador Vladimir Goshin agreed that Vietnam and the EAEU need to remove existing non-tariff barriers, digitize administrative procedures, implement mutual recognition of origin in the field of agriculture, and set up food inspection mechanisms and issue food safety certificates for EAEU products.

Former Vietnamese Deputy Prime Minister Vu Khoan, who spent many years at the Vietnamese Embassy in Russia, pointed to difficulties that the two countries are facing in increasing bilateral trade value. These include geographic distance, fierce competition for EAEU goods in Vietnam, and Vietnamese consumers’ poor information about EAEU markets. The transport of goods between Vietnam and some EAEU countries without a coastal borderline remains difficult and suffers from high logistics costs, he added.

According to a Ministry of Industry and Trade representative, during the third session of the joint committee on the Vietnam-EAEU FTA held in Hanoi, Vietnam proposed that both sides aim to abolish Technical Barriers To Trade (TBTs), attempt to implement the recognition of the equivalence of sanitary and phytosanitary measures, and amend rules of origin articles.

The government, the Ministry of Industry and Trade, and Vietnamese trade offices in foreign countries plan to strengthen Vietnamese market information, connect businesses, hold meetings with businesses and inform enterprises of trade remedies.

Enterprises need to carefully research the VN-EAEU FTA, including its tax cut roadmap, origin regulations, and EAEU country laws to prepare the best strategies to penetrate those markets.

Three years since the implementation of the Vietnam-Eurasian Economic Union Free Trade Agreement (VN-EAEU FTA), both sides are confident it has made an important contribution to the trade growth between Vietnam and EAEU member states. In the first nine months of 2019, trade between Vietnam and the EAEU reached US$3.7 billion, with Russia making up the majority - 92 percent, followed by the Republic of Kazakhstan with 5.5 percent, and the Republic of Belarus with two percent.

Thu Hang