Minister of Industry and Trade Vu Huy Hoang and Trade Minister of theEurasian Economic Commission Andrei A.Slepnhev signed a joint statementon the conclusion of the Vietnam-Custom Union Free Trade Agreement(VCUFTA) on December 15 in the southern province of Kien Giang .
Witnessing the event, Prime Minister Nguyen Tan Dungsaid the signing and implementation of the agreement will be animportant progress to enhance bilateral relations in economy,education-training, science-technology, and culture. He urged the twosides to finalise all necessary procedures to put final touches on theagreement in early 2015.
Vietnam and theCustom Unions kicked off their FTA talks in March 2013. After eightrounds of negotiation and many technical discussions, they haveinitially agreed on contents of the agreement on a wide-ranging scopeand high-level commitments while ensuring mutual benefit in line withinternational practices and regulations of the World Trade Organisation(WTO).
The contents cover trade in goods andservices, investment, rules of origin, trade remedy, customsfacilitation, technical barriers to trade, sanitary and phytosanitarymeasures and legal and institutional issues.
Andrei A.Slepnhev, head of the union’s negotiation delegation, saidthe signing of the pact will boost two-way trade vigorously and promoteinvestment ties among economic members.
From 2015,the Customs Union will be changed into the Eurasian Economic Union withthe admission of Armenia and Kyrgyzstan . This will enableVietnam to become a bridge linking the two economic regions, he said.
Minister Vu Huy Hoang described the union as apromising market. With the VCUFTA, local exports to Russia , Belarusand Kazakhstan could increase by 63 percent, 41 percent and 8percent, respectively, he said.
The union providesVietnam with preferential tariffs to facilitate its export of staplessuch as farm produce, seafood, garments and textiles, footwear and woodfurniture.
Meanwhile, Vietnam agrees to openits market under a set roadmap for several commodities from the union,including husbandry products, machines, equipment and vehicles, whichwill not compete with made-in-Vietnam goods, but help to diversify thedomestic market.
Vietnam is the union’s firstFTA partner, which will make Vietnamese businesses integrate into theunion earlier than others with more preferential conditions. Once theagreement becomes effective, two-way trade is expected to rise by 18-20percent a year, from 4 billion USD in 2014 to 10-12 billion USD in 2020.-VNA