Illustrative image (Source: VNA)

HCM City (VNA) – Vietnamese firms have a chance to enter consumption markets of five nations with over 180 million people and the GDP exceeding 2.5 trillion USD in the Eurasian Economic Union (EAEU) thanks to the Vietnam – EAEU free trade agreement (FTA).

Vietnamese Ambassador to Russia Nguyen Thanh Son made the statement at a workshop in Ho Chi Minh City on August 29.

According to Son, the EAEU has committed to tax cut to zero percent on over 90 percent of tariff lines, which presents a great opportunity for Vietnamese products, especially farm produce, garment-textiles, footwear, wood and processing products.

With the Vietnam – EAEU FTA becoming effective, bilateral trade value between Vietnam and Russia is expected to see an annual increase of 50 percent, according to the diplomat.

Meanwhile, Deputy Director of the municipal Department of Industry and Trade Nguyen Phuong Dong highlighted the city’s incentives to encourage local firms to invest in the Union.

In this October, a Ho Chi Minh City’s Goods Week will be orgnanised in the Hanoi – Moscow Trade Centre, Russia, with the registration for participation of over 40 enterprises, according to Dong.

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.

Russia and Kazakhstan ratified the trade pact, which will lift most tariffs on goods traded among participants.

The deal is expected to increase trade revenue between Vietnam and the EAEU to 10 billion USD by 2020 from the current yearly average of 4 billion USD.-VNA