Vietnam

FTAs planned with Russia and European Union


Published

Vietnam is working towards two important Free Trade Agreements.

Earlier this week President Vladimir Putin of the Russian Federation visited Vietnam and signed a number of cooperation agreements. Prime Minister Nguyen Tan Dung called on the President to do everything possible to speed up the signing of a Free Trade Agreement (FTA) between Vietnam and the Belarus-Kazakhstan-Russia Customs Union in 2015.

Meanwhile the European Commission Vice President Antonio Tajani also visited Vietnam this week and indicated that the European Union (EU) hopes to sign a free trade agreement (FTA) with Vietnam as early as late 2014.

The two press releases covering the two events as published on the Vietnamese government website are as follows:

“VN is Russia’s key partner in Asia-Pacific

19:22 | 12/11/2013

Mr. Putin made the point while meeting with Vietnamese PM Nguyen Tan Dung on November 12 in Ha Noi.

PM Dung underlined that the Vietnamese Government satisfied with positive progress in the bilateral ties in which the political trust has been further strengthened.

He lauded the outcomes of the latest talks between State President Truong Tan Sang and Russian President Putin.

The Vietnamese Government, said Mr. Dung would spare no effort to cooperate with Russian Government to realize the signed agreements.

According to the host leader, there are wide doors for the two countries to tap in such areas as economics, trade, investment and tourism and the Vietnamese Government promises to roll out red carpets for Russian investors to set footholds in Viet Nam.

PM Dung also proposed Russia speed up the negotiations for early initialling a FTA between Viet Nam and the Belarus-Kazakhstan-Russia Customs Union in 2014 towards the official signing of the document in 2015.

He also suggested Russia closely work with Viet Nam to realize the first nuclear power plant in Viet Nam on schedule.

For his part, President Putin said that the goal of US$ 7 billion two-way trade in 2015 is feasible.

He proposed the two sides do their utmost to support respective business circles to study markets and spur trade linkages.

The two leaders also agreed to boost cooperation in the domains of national defense, exploration and exploitation of oil, gas and energy, minerals and education.

Both sides reached a consensus on further coordination and mutual support at international forums.”

“EU looks to sign FTA with VN by late 2014

16:50 | 13/11/2013

VGP – The European Union (EU) hopes to sign a free trade agreement (FTA) with Viet Nam as early as by late 2014, said European Commission Vice President Antonio Tajani.

Mr. Antonio Tajani made the point on November 13 in Ha Noi while meeting with PM Nguyen Tan Dung during his overseas trip to seek business opportunities with Viet Nam.

Viet Nam, said PM Dung, was delighted at the developments in the bilateral ties in which two-way trade progressed rapidly, reaching over US$ 29 billion in 2012 and is expected to register a 15% rise in 2013. The EU is also one of the largest investors in Viet Nam with total registered capital of US$ 32 billion.

“Viet Nam hopes to shake hands with the EU in all aspects particularly economics, trade, investment, tourism and ODA,” said PM Dung.

According to the host leader, the Vietnamese Government welcomes and promises to support European enterprises and investors including small and medium-sized ones to do long-term and profitable business in Viet Nam.

PM Dung took the occasion to seek the EC’s assistance for the early signing of the Partnership and Cooperation Agreement (PCA) and the Free Trade Agreement (FTA) in 2014. These documents are expected to create a crucial legal framework and provide favorable conditions for businesses to penetrate into respective markets and beef up economic, trade, investment, tourism linkages.

Finally, the Government chief proposed the EU early recognize Viet Nam as a market economy and continue providing ODA for the recipient country at a high level.

Mr. Antonio Tajani revealed that the EC delegation is consisted of 40 leading enterprises which want to promote and expand cooperation with Viet Nam in the areas of trade, investment and tourism.

The EU, said the Vice President, hopes to strengthen linkages among SMEs of the two sides in such areas as agricultural processing, tourism, chemicals, and cosmetics industry in the following years and stands ready to work with Viet Nam in the space field, particularly disaster forecast and warning.”

More detailed briefing on the politics and risk of doing business in this country is available to clients and subscribers. If you would like to know more then please contact enquiries@tradebridgeconsultants.com