Vietnamese Foreign Minister, Anh Dung, has stated that he wishes to see Vietnam-Russia bilateral trade hit the US$10 billion mark next year, among growing positive results after Vietnam agreed a free trade agreement with the Russian-led Eurasian Economic Union (EAEU) in 2016.
The EAEU is a free trade area that includes Russia in addition to Armenia, Belarus, Kazakhstan and Kyrgyzstan. It effectively sits between the EU and China, and yet has been developing more Asian interest following EU sanctions imposed on Russia.
The impact on Vietnam has been a marked increase in investment from EAEU members and especially from Russia, where the agreement has helped spur investments in Vietnam’s auto and other industries.
The Vietnam-EAEU Free Trade Agreement also provides Russian companies with access to ASEAN markets, which comprise the major Asian economies of Indonesia, Malaysia, Philippines, Singapore, and Thailand along with smaller markets, such as Cambodia, Laos, and Myanmar. Vietnam as a member of ASEAN allows for reduced tariffs with these nations, while ASEAN itself also has an Free Trade Agreement with China and India.