The EAEU, which comprises Russia, Belarus, Kazakhstan, Armenia and Kyrgyzstan, signed the FTA with Vietnam in May 2015. This was the first FTA signed between the EAEU and an external partner. Economic experts have suggested Vietnam thoroughly assess the impacts that the Vietnam-Eurasian Economic Union (EAEU) free trade agreement (FTA) may exert on specific sectors and markets, in a bid to fully enjoy the benefits brought about by the pact.
Dang Hoang Hai, Head of the Ministry of Industry and Trade’s European Market Department said as it is the first FTA signed between the EAEU and an external partner, the deal would offer a huge opportunity for domestic enterprises. The agreement spans a range of fields, from trade to sustainable development and intellectual property, that aims to introduce EAEU member markets and the export opportunities afforded by the deal.
Nguyen Khanh Ngoc, the Department’s Deputy Head, proposed that enterprises set up their own warehouses in order to cut transportation costs, explaining that geographical distance remains a challenge hindering efforts to penetrate these markets. Apart from observing strict regulations prescribed in the agreement, Vietnamese businesses should map out plans to compete with their rivals in the foreign countries fairly, with special attention paid to product price and quality, Ngoc said.
