Vietnam signed a Free Trade Agreement with Eurasian Economic Union. The signing was conducted by Russian Prime Minister Dmitry Medvedev and his Vietnamese counterpart Nguyen Tan Dung on 29 May, after a meeting of the Eurasian Intergovernmental Council in Kazakhstan. “The free trade zone with Vietnam is very important and marking a milestone. I’m confident it will deliver benefits to our countries’ economies and finally to the peoples of those countries,” Medvedev said.
The FTA reduces tariffs on 90% of all goods traded between Vietnam and the EEU nations of Russia, Armenia, Belarus, Kazakhstan and Kyrgyzstan and is expected to boost trade between Vietnam and the EEU to USD 10 billion within the next five years. 2014 trade was USD 4 billion. The implementation of the FTA is expected to save EEU exporters USD 40-60 million, and Vietnamese exporters USD 5-10 million in its first year. The agreement will enter into force within 60 days of being ratified.