logo logo

Negotiations on Vietnam-Russia FTA begin

VOV News | 10/11/2010

Negotiations on Vietnam-Russia FTA begin

A bilateral Free Trade Agreement (FTA) between Vietnam, Russia and the Customs Union of Russia-Belarus and Kazakhstan will bring huge economic, trade, services and investment benefit.

The statement was made by Dang Hoang Hai, head of the European Department of the Ministry of Industry and Trade on the sidelines of the first meeting of the joint working group for the Vietnam-Russia FTA in Hanoi on October 11. Hai affirmed this first meeting was an important step towards the beneficial agreement.

Hai said one of reasons that Russia is interested in FTA with Vietnam is that the country can be a strategic partner in helping Russia restore its Asian influence. Russia sees Vietnam as a gateway to access other Asian countries, especially in the ASEAN organisation.

In addition, successful negotiations on a FTA will develop both countries commercial strength. Vietnam can push for exports of agricultural, seafood and garment products to Russia, and vice versa Russia currently exports fertilizer, oil and gas, atomic energy, heavy industry and automobile to Vietnam.

Two-way trade turnover between Vietnam and Russia is estimated to reach US$3 billion in 2011 and US$10 billion in future. This is significant figure as two-way trade turnover between Vietnam and EU is below US$10 billion.

To further promote the strategic partnership between Vietnam and Russia as well as the Customs Union of Russia-Belarus-Kazakhstan, leaders have agreed to sign an FTA in the near future. Negotiations will cover three main issues: customs barriers, services and investment, and intellectual property.

 source: VOV News