Vietnamese products will have better opportunities to penetrate the market of 175 million people.
The free trade agreement (FTA) between Vietnam and the Eurasian Economic Union will go into effect on October 5, 2016, Vietnam's Government Portal reported August 19.
Vietnam is the first partner to sign an FTA with the Eurasian Economic Union, opening the door for Vietnamese goods to enter a market of 175 million people with an estimated GDP of $2.5 trillion and stable growth.
Under the agreement, tariffs applied to many Vietnamese goods will be reduced, liberalizing multilateral trade. The agreement concerns trade in goods, trade remedies, rules of origin, sanitary and phytosanitary measures, intellectual property and other joint commitments.
The agreement will help Vietnam attract foreign investment in the mining and processing, energy production, machinery and chemistry sectors, which are key strengths in the Eurasion union. In return, the Southeast Asian nation can benefit from this FTA by investing in light industry, petroleum mining and processing.
The FTA will also facilitate exchange of knowledge, experience, experts and labor among member countries. It is expected help improve Vietnam’s investment environment, making it more transparent and efficient.
Negotiations for the FTA between Vietnam and the Eurasian Economic Union, which includes Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russia, kicked off in March 2013. After two years of talks, the deal was finally signed on May 29, 2015, in Burabay, Kazakhstan.