Vietnam-EAEU FTA produces positive outcomes
Officials of Vietnam and the Eurasian Economic Union (EAEU) lauded the upbeat outcomes brought about by the EAEU – Vietnam free trade agreement (EAEU – Vietnam FTA) in more than one year and a half since it took effect.
Minister of Industry and Trade Tran Tuan Anh (centre, in stripped suit) at the working session. (Photo: VNA)
The enforcement of the FTA was reviewed at a working session between Vietnam’s Minister of Industry and Trade Tran Tuan Anh and Minister for Trade of the Eurasian Economic Commission (EEC) Veronika Nikishina, in Moscow on June 18th.
According to statistics of the Vietnam Customs, trade between the two sides hit USD 3.9 billion in 2017, up 31 per cent from 2016. Also in 2017, Vietnam recorded a trade surplus of nearly USD 1 billion with the bloc.
In the first four months of 2018, the bilateral trade was at USD 1.53 billion, an annual increase of 35 per cent.
Key exports of Vietnam to EAEU were phones – components, computers – electronic devices, apparel, footwear, fruit – vegetables, coffee, cashew nut, and seafood. It mainly imported petrol, oil, steel, fertilizers, and machinery from the EAEU. Commodities of the sides supplement each other, thus limiting the disadvantages usually seen with other FTAs.
However, the two ministers took note of the low use of incentives brought by the agreement, particularly the Certificate of Origin Form EAV.
They urged more joint efforts to clear hurdles for Vietnamese and EAEU businesses so that they can capitalize on favourable conditions created by the bilateral FTA and bolster bilateral trade towards a value of USD 10 billion in 2020.
Tuan Anh voiced his concern over the EEC’s safeguard duties imposed on Vietnamese underwear and children’s wear products for nine and six months respectively since March 14th, 2018. He noted that Vietnam had repeatedly asked for reconsideration of the duties considering that Vietnamese goods accounted for a low share in the EAEU’s total import of such products, had good quality, and supplemented garment and textile products made by EAEU countries.
The Vietnamese minister asked the EEC to soon lift the duties and make criteria of its safeguard measures more transparent in the future.
Concluding their meeting, the two officials agreed to pour more efforts to effectively implement the EAEU – Vietnam FTA and create maximum favourable conditions for bilateral trade of agro-forestry-fishery goods.
They reached a consensus on speeding up negotiations to build an electronic origin assessment and certification system following the roadmap committed to by both Vietnam and the bloc.
In an interview with the Vietnam News Agency, Minister Tuan Anh said the FTA is a strong catalyst for trade with Russia, the important comprehensive strategic partner of Vietnam in EAEU. Trade value with Russia currently accounts for about 90 per cent of Vietnam’s total trade with the bloc.
He said the EAEU is intensifying its trade and investment with the ASEAN Community in its strategy to expand ties with the Asia-Pacific region, and Vietnam is also building production and distribution chains in this region. Therefore, deeper cooperation with Vietnam will give producers and suppliers in Russia and other EAEU opportunities to join supply chains in the Asia-Pacific./.