The free trade agreement (FTA) between Vietnam and the Eurasian Economic Union (EAEU) represents a turning point and huge mutual benefit, said Nguyen Thi Thu Trang, Director of the World Trade Organisation Centre under the Vietnam Chamber of Commerce and Industry (VCCI). 

She made the statement during a workshop held in Hanoi on July 7 to present and discuss the FTA signed on May 29 after more than two years of negotiations . 

The two economies complement each other and Vietnam is currently the only EAEU trade partner, Trang went on to clarify. 

The EAEU encompasses Russia, Belarus, Kazakhstan, and Armenia. Kyrgyzstan is waiting for the union’s approval to become an official member. 

With a total current population of 182 million people, the community posted a combined gross domestic product worth more than 2.2 trillion USD in 2014. It boasts rich mineral resources of oil, coal and iron ore. 

The market major imports phones, electronic devices, apparel, footwear and agricultural produce from Vietnam while its main exports to the country are oil and gas, iron and steel, fertilisers and machinery . 

Dao Thu Huong from the Ministry of Finance's Department of International Cooperation noted there is no direct competition in the Vietnam- EAEU import-export structure, adding that some 53 percent of current tariffs will be zero percent once the pact takes effect. 

According to Huong, the volume of iron and steel products, fertilizers and machinery account for 12 percent, 25 percent, and 9 percent of Vietnam’s total good import from the EAEU, respectively. Those commodities are scheduled to have reduced tariffs.

Source: Vietnam Plus

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