The free trade agreement Viet Nam signed last week with the Eurasian Economic Union (EEU) has significant meaning for local exporters as the trade pact is the first of its kind for both parties involved, industry insiders and experts have said.

The FTA with Viet Nam, closed by the prime ministers of the five EEU member countries and their Vietnamese counterpart, Nguyen Tan Dung, in Kazakhstan on Friday, was the first such deal struck by the Moscow-led body with a third party, according to Reuters.

Russian Prime Minister Dmitry Medvedev (L) and his Vietnamese counterpart Nguyen Tan Dung attend a news conference following a signing ceremony in Burabai, Kazakhstan, May 29, 2015. Reuters

The EEU includes Russia, Armenia, Belarus, Kazakhstan, and Kyrgyzstan.

Vietnamese goods will thus for the first time have the chance to enjoy duties as low as zero percent when entering these markets, according to local experts.

The trade pact with the EEU was the second FTA Viet Nam had signed this year, following the deal with South Korea on May 5.

More tariff lines will be eliminated and the non-tariff barriers will also be reduced.

The FTA will help reduce export duties to zero from 10% and simplify many procedures.

By signing the FTA, the EEU aims to increase its turnover from trade with Viet Nam to at least $10 billion in five years from $4 billion in 2014, Viktor Khristenko, chairman of the Eurasian Economic Commission's board, told reporters after the signing ceremony.

(Source: tuoitrenews)