Vietnam’s exports to the Eurasian Economic Union (EAEU) are expected to grow by 18 to 20 per cent a year. The union consists of Russia, Belarus, Kazakhstan, Armenia and Kyrgystan. A free trade agreement, which this union has with Vietnam will come into force soon. Vietnam will be the first FTA partner of the union.

The agreement covers a market of almost 183 million people and accounts for 3.2 per cent of global gross domestic product. Vietnam and the union will cut about 90 per cent of their lines of tariff. They will slash the rate for nearly 60 per cent of tariff lines to zero per cent immediately after the agreement becomes effective.

Vietnam will immediately lift import duties for EAEU products such as salmon, which is taxed by 10 per cent, and tilapia and tuna, now seeing tariff rates of 15 to 20 per cent.

The EAEU will apply a zero per cent tariff for Vietnamese products such as uncondensed milk and ice cream with no sugar and sweet substance, which has an import tax of 15 per cent; and fresh chestnut and turkey meat, which are subject to import duties of five per cent and 20 per cent.