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Businesses prepare for the Vietnam– EAEU FTA

Five out of six countries in the Eurasian Economic Union (EAEU) have ratified the Vietnam–EAEU Free Trade Agreement, which will officially take effect this September.

For two years, Russia has been the main export market for Hồ Gươm Garment Joint Stock Company. According to a representative of this company, the agreement will open up new export opportunities to the five countries in the Eurasian Economic Union (EAEU), while at the same time, removing difficulties in payment methods in these markets.

Do Duc Tuan, Ho Guom Garment JSC. said: Our most problematic issue right now is the methods of payment, as many of our Russian customers cannot open a Letter of Credit. Therefore, we really want to find ways to remove these difficulties in order to enter the EAEU market.

Also, according to a representative from Incentra Investment Company, the demand for partners between countries is very high. Therefore, the company decided to take advantages of the EAEU Free Trade Agreement to expand the scale of their trade fairs.

Le Phuong Linh, CEO, Incentra Investment Co. Ltd. said: We’ll organise two trade fairs in Moscow: one for products from Hanoi, and one for goods from Ho Chi Minh City. We decided to break down our fairs by region so that enterprises can find appropriate customers more easily.

Although customers in the five countries covered by the EAEU are not as demanding as in other markets, it still is not easy to conquer a market of over 183 million people. Representatives of the Ministry of Industry and Trade said Vietnamese enterprises needed to be well prepared even in the simplest things.

Dang Hoang Hai, Head of European Market Department, Ministry of Industry and Trade said: Businesses need to find out if their own products are included in the tax cut programme or not; then they need to look at the origin demands and associated customs barriers. Only then can businesses identify if their products can really enjoy the advantages of the Free Trade Agreements.

The Vietnam–EAEU Free Trade Agreement will offer more export opportunities for Vietnamese businesses. The sectors of aquaculture, textiles and footwear will enjoy a 90% tax cut with some tariffs being removed completely./.


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