Vietnam, Eurasia Economic Union sign free trade agreement

11:07 | 30/05/2015 Trade

The free trade agreement between Vietnam and the Eurasia Economic Union (EAEU) was signed in Burabai, Kazakhstan on May 29 after more than two years of negotiation, opening up a new chapter in the partnership between Vietnam and the union as well as each EAEU member in particular.

Vietnam, Eurasia Economic Union sign free trade agreement

Prime Minister Nguyen Tan Dung (R) signs the free trade agreement between Vietnam and the Eurasia Economic Union. Photo: VNA

The deal was inked by Prime Minister Nguyen Tan Dung and leaders from EAEU members – Russia, Belarus, Kazakhstan, Armenia, and Kyrgyzstan – as well as the Chairman of the Board of the Eurasia Economic Commission.

Launched in Vietnam on March 28, 2013, the comprehensive and highly-committed agreement regulates issues related to goods trading, origin principle, trade remedies, investment, intellectual property, legality and institution, among others.

Once it becomes effective, two-way trade between Vietnam and the EAEU is expected to reach up to 12 billion USD in 2020, a surge from 4 billion USD in 2014. Vietnam ’s exports to the union are estimated to rise between 18-20 percent per year.

With total population of about 175 million and a GDP of 2.5 trillion USD, the EAEU plays an important role in the growth of a number of former Soviet Union states towards a uniformed economic space.

Speaking to the media after the signing ceremony, Prime Minister Nguyen Tan Dung lauded efforts of negotiation teams of both sides during the past over two years.

He highlighted the sound traditional friendship and collaboration between Vietnam and EAEU member countries over the past years.

The FTA makes Vietnam the first international partner to sign such deal with the union, he noted, adding that the agreement also manifests a strategic vision of the union on developing ties with the dynamic Asia-Pacific region.

The Vietnamese leader held that the FTA will greatly help boost economic growth in each country, fostering bilateral trade, service and investment relations and expanding regional cooperation.

As an active member of the ASEAN, Vietnam will do its best to assist the EAEU in extending its affiliation with the ASEAN Community, a 600 million-strong single market with a GDP of about 2.5 trillion USD, he stated.

The PM also noted that Vietnam is speeding up negotiations for FTAs with many large partners, which will create favourable conditions for enterprises from EAEU’s member countries to invest in Vietnam and benefit from opportunities to access various huge markets such as the US, China, Japan, EU and Australia.

Meanwhile, Chairman of the Board of the Eurasia Economic Commission Viktor Khristenko expressed his delight at the signing of the deal, saying that it is a historical event of the EAEU as Vietnam is the first partner to sign the document with the union.

Vietnam has also been a strategic partner of the union in Southeast Asia throughout decades, he said.

The balanced agreement which takes into account common interest marks a new period in the partnership between both sides, he declared, adding that the setting up of a free trade mechanism between EAEU and Vietnam will open new opportunities for all involved parties.

At the same time, in his speech, Kazakhstan PM Karim Masimov said the signing of the deal is an important part of the union’s persification of cooperation channels.

PM Nguyen Tan Dung said he believes Vietnam and EAEU member countries will promptly finalise internal approval procedures for the deal, so that it will become effective soon and bring about great benefit to enterprises and peoples of both sides.

Source VNA