Wood production for export to Russian market at the Hiệp Long Company in southern Bình Dương Province. — VNA/VNS Photo Thanh Vũ

HCM CITY — The Việt Nam-Eurasian Economic Union (EAEU) free trade agreement, which took effect on Wednesday, is expected to expand trade between Việt Nam and Russia from the current US$4 billion to $10 billion in the next five to seven years, a Russian official said.

Speaking to the media early this week in HCM City, the Russian consul Alexey Popov, said bilateral trade has been on the rise in recent years.

With this trend and the co-operation between Russia and Việt Nam in the Việt Nam-EAEU FTA, it is quite possible to grow bilateral trade by two to three times and even more, he said.

Ivan Gumnikov of the Russian Trade Office in Việt Nam said after the agreement takes effect, two-thirds of all tariff lines on goods traded between Việt Nam and Russia would be reduced to zero per cent.

The tariffs on the remaining goods would gradually be reduced to zero in the next five to 10 years, he said.

Russia is strong in products like meat, milk, wheat flour, fertilisers, oil and gas, oil-based products, automobiles, steel, and machinery.

Russian automobile manufacturers are actively working to set up joint ventures with Vietnamese firms.

The FTA offers Vietnamese firms the opportunity to boost exports of farm produce, foodstuff, seafood, garment and textile, and footwear to Russia.

According to the Việt Nam Textile and Apparel Association, the FTA will increase Việt Nam’s garment and textile, footwear, and seafood exports to Russia by 30-50 per cent thanks to tariffs falling from 35 per cent (seafood) and 10-18 per cent (garment and textile and footwear) to zero per cent.

Popov said countries involved in the FTA have rapidly simplified their customs clearance processes to facilitate trade.

The EAEU consists of Russia, Belarus, Kazakhstan, Armenia and Kyrgyzstan

Việt Nam and Russia are discussing making payment in their own currencies to better promote investment and trade ties, Popov said.

According to the Ministry of Industry and Trade’s import and export department, 938 Vietnamese firms export goods to the EAEU, with the main items being seafood, coffee, tea, rice, cashew, pepper, garment and textile, timber, and confectionary.

The trade deal was signed in Kazakhstan in May last year following eight rounds of negotiations.

HCM City firms at Russia expo

Nguyễn Phương Đông, deputy director of the HCM City Department of Industry and Trade, said 41 local firms, mostly from the garment and textile, footwear, handicrafts, wood products, and food and foodstuff industries, are taking part in the “Sài Gòn Expo” to be held at the Hà Nộii-Moscow Culture-Trade Complex (Incentra) from October 6 to 14.

The event would be a good chance for them to acquaint Russian consumers with their goods and explore investment opportunities in that market, he said. — VNS