Prime Minister Nguyen Tan Dung has signed a free trade agreement (FTA) with the Eurasia Economic Union (EAEU) inKazakhstanthat is expected to open up vast opportunities and challenges for the nation over the years to come.
In the run up to the signing ceremony, Dang Hoang Hai, head of the Vietnam Technical Negotiation Delegation in Astana, sat down with a Radio Voice of Vietnam (VOV) reporter to provide his thoughts on the important trade pact.
Following are key translated excerpts from the interview.
Reporter: The negotiation process and preparations for the signing of the FTA between Vietnamand the EAEU are nearly complete. What is your assessment of how the process has gone?
Mr Hai: The negotiation process has transpired rather quickly. Initially, Vietnamwas negotiating with only Russiaand then over the span of two years the other nations of the EAEU joined in.
The agreement has the typical characteristics of other free trade pacts. All of the nations involved in the FTA, have a long standing traditional friendship with Vietnamincluding Russia, Belarus, Kazakhstanand new members like Armeniaand Kyrgyzstan.
These countries have stood shoulder to shoulder with Vietnamin the process of national construction and in the war against USimperialism.
The negotiation process for the agreement was undertaken seriously and as a consequence, both sides have a hammered out a solid agreement that is mutually beneficial not only for Vietnambut all nations of the EAEU.
Reporter: What do you think about the significance of the agreement for Vietnamand member countries of the EAEU?
Mr Hai: I think that it has great significance for all concerned parties. For Vietnam, the EAEU is a great potential market with a consumer market of more than 170 million strong and GDP with purchasing power reaching USD17 trillion.
The figures unequivocally demonstrate this is a promising market. Notably, the agreement has fulfilled our fundamental targets in which all priority export items have achieved favourable conditions.
For example, nearly 100% of the nation’s commodities will be allowed entry into the EAEU free of any import duties. Regarding garments and textiles value added items, we have successfully negotiated for abatement of 80% of the import duties.
Vietnam is one of the first nations to sign a FTA with the EAEU and will enjoy substantial reductions in import tariffs. At the same time we have made significant progress in removing ‘technical barriers’ to trade.
In the negotiations, we placed great emphasis on opening up the EAEU markets for Vietnam’s top commodities such as iron, steel, industrial and agricultural goods. In return, Vietnamhas opened its markets for import of beef, milk, cereal, meat and processed fish.
I think the overall impact of the agreement will be very positive as it should benefit all concerned parties.
Reporter: During the negotiation process, what are assessments of concerned parties towards Vietnamese market when implementing articles in the agreement?
Mr Hai: The EAEU member nations view Vietnamas a great potential market for exports and investment in addition to being a gateway to the ASEAN markets.
Reporter: What obstacles do you foresee in implementing the FTA?
Mr Hai: Although the FTA opens up a lot of opportunities, it poses a number of challenging obstacles. Geographical distance is the number one problem that must be overcome as nations in the EAEU are far from Vietnam.
Secondly, familiarity with the markets is a distinct problem. It is going to take some hard work on the part of the Vietnambusiness community to get up to speed on the EAEU markets and thoroughly understand them.
Thirdly, language barriers, differing laws, customs, all will create their own unique problems that will need to be dealt with effectively. Therefore, the Vietnambusiness community will have its hands full in manoeuvring in the market.
Furthermore, the FTA hasn’t broken down all trade barriers so Vietnamshould expect some push back from specific industries in the EAEU member nations as they attempt to create their own technical barriers.
Vietnam has had some experience exporting to Russia. However, this will be the nation’s first experience with the markets of Armeniaand Kyrgyzstan - so it is apt to be a very demanding and rewarding experience.
Reporter: Thank you very much./.
Source: CPV
Key words: Prospects, the Vietnam-EAEU, free trade agreement
