FTA enforcement between Vietnam and EEAU under review

At the meeting, the two ministers agreed that the Vietnam-EAEU FTA has contributed to the strong development of two-way trade between Vietnam and EAEU member countries.

Minister Slepnev provided information on the implementation of the FTA, according to which, in general, the results of the first 5 years of FTA implementation showed a stable growth rate in trade turnover between the EAEU and Vietnam, with an increase 32.2% (from US$5.9 billion in 2017 to US$7.8 billion in 2021, according to EAEU data).

However, the extent of preferential utilization from this agreement is still modest (with an average rate of more than 40%). This shows that bilateral economic - trade cooperation still boasts huge potential, requiring greater efforts to remove obstacles for development.

Minister Nguyen Hong Dien frankly assessed that a number of provisions and commitments of the agreement were no longer relevant to the current context.

Accordingly, it is considered that this is the right time for the EAEU and Vietnam to consider new ideas and upgrade the FTA to jointly exploit new potential and fresh opportunities that remain open.

While dealing with necessary processes and procedures to amend the agreement, the two sides need to find ways to remove current obstacles and difficulties, and promote bilateral trade.

On that basis, Minister Nguyen Hong Dien asked the EAEU to note Vietnam's concerns regarding the limitations of the threshold safeguard measure and the low rice quota.

Regarding the requirements of the EAEU for the possibility of opening the market for some cognac products, increasing the export of wheat, beef and fertilizer to Vietnam.

Vietnam will coordinate and discuss with relevant ministries in the spirit of readiness to open the market and balance the interests of the two sides.

During the meeting, the two ministers also briefed the results of the subcommittee meeting while the EAEU raised the issue of green economic development. This is also an issue that Vietnam is highly interested in.  The Vietnamese side welcomes this content and looks forward to receiving cooperation and experience sharing from the EAEU.

At the end of the meeting, the two ministers signed the minutes of the meeting and agreed to report to both sides’ governments to promote the contents discussed and agreed upon by the two sides.

The EAEU consists of the Russian Federation, the Republic of Belarus, the Republic of Kazakhstan, the Republic of Armenia and the Kyrgyz Republic.

According to data from the General Department of Vietnam Customs, since the FTA took effect (at the end of 2016), that two-way trade turnover reached US$3.04 billion, up 23% compared to 2015.

In the following years, bilateral trade enjoyed a positive growth rate of over 25%. In 2021, despite being affected by the COVID-19 pandemic, bilateral trade still grew by more than 16% to nearly US$6 billion.

In which, Vietnam’s exports to the EAEU hit about US$ 3.5 billion, up 15.3% and import reached US$ 2.4 billion, up 15.7%.