Vietnam-EAEU meeting strengthens economic ties

The meeting was co-chaired by Vietnamese Minister of Industry and Trade Nguyen Hong Dien and the EAEU’s Minister of Trade Andrey Slepnev.

Vietnamese participants included representatives from the Ministry of Finance, Ministry of Agriculture and Rural Development, Ministry of Natural Resources and Environment, Ministry of Health, Ministry of Transport, Ministry of Planning and Investment, Ministry of Foreign Affairs, Ministry of Industry and Trade, and the Government Office.

Participants from the EAEU included representatives of the Eurasian Economic Commission and ministries and sectors of EAEU member countries, including Russia, Belarus, Kazakhstan, Armenia, and Kyrgyzstan. The ambassadors of Russia, Armenia, Belarus and Kazakhstan to Vietnam also attended the meeting.

Minister Nguyen Hong Dien and Minister Andrey Slepnev agreed that the FTA between Vietnam and the EAEU has contributed significantly to trade between Vietnam and EAEU member countries.

According to data from the EAEU, in the 2017-2021 period, trade value between Vietnam and the EAEU increased strongly from US$5.9 billion in 2017 to US$7.8 billion in 2021. Russia is Vietnam’s largest trading partner among EAEU member countries, accounting for 66 percent of the total value of Vietnam’s exports to the EAEU and 97 percent of its imports from the union.

Due to unfavorable factors as well as difficulties facing the entire global economy, trade between Vietnam and the EAEU decreased sharply in 2022. However, bilateral trade has shown signs of recovery in 2023, reaching about US$3.2 billion in the first nine months of 2023, up one percent year-on-year. The sum included about US$1.8 billion worth of Vietnam’s exports to the EAEU and US$1.4 billion worth of imports from the union.

Businesses of the two sides have taken advantage of the Vietnam-EAEU FTA’s preferences and achieved positive results. Data from the Vietnamese Ministry of Industry and Trade show that in the first seven months of 2023, the use of EAEU-form certificates of origin made up 51 percent of the bilateral trade value, against 38 percent in 2022, 31 percent in 2021, and 28 percent in 2020.

The two ministers agreed to increase investment cooperation between Vietnam and EAEU member countries in order to create a favorable environment and more opportunities for investment.

The two ministers also acknowledged the progress of priority investment projects between Vietnam and EAEU member countries. They agreed to increase support for businesses to help them overcome all problems during the process of implementing priority investment projects in each other’s territories.

Vietnamese Minister of Industry and Trade Nguyen Hong Dien co-chairs the meeting

Minister Nguyen Hong Dien said that in the current context, it is extremely necessary to strengthen and expand multilateral and bilateral economic cooperation in order to prevent supply chain disruptions and promote socioeconomic development in each country.

However, some contents of the Vietnam-EAEU FTA have now become irrelevant to the new situation; therefore, Minister Nguyen Hong Dien said that the two sides should propose new solutions to enhance the agreement’s effect on further efforts to boost economic cooperation and trade between Vietnam and the EAEU. The following specific measures should be considered:

1) The two sides study the feasibility of amending and upgrading the FTA between Vietnam and the EAEU;

2) The two sides continue opening the market, removing trade barriers and difficulties related to payment, transportation and travel between Vietnam and EAEU member countries. EAEU member countries are requested to consider and offer visa exemptions for Vietnamese citizens, similar to Vietnam’s visa policies applied to foreign citizens.

3) The authorities of the two sides explore cooperation possibilities in new fields such as green transformation, energy transition, climate change prevention, circular economy, science and technology, innovation and creativity.

Wrapping up the meeting, the two ministers agreed to continue facilitating goods’ access to each other’s markets and remove trade barriers, especially unnecessary administrative procedures, in order to increase bilateral trade.

At the same time, the two ministers agreed to update each other on changes in import-export policies of each country in order to help businesses implement their production and trade strategies in a more effective manner.

Notably, the two ministers also agreed to create favorable conditions for businesses to participate in trade promotion activities to seek partners and bring into play their advantages to achieve better results. The two officials expressed their willingness to report problems beyond their authority to the governments so that they can be resolved in a timely manner to promote cooperation.