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EAEU and Vietnam discussed the possibility of expanding trade and economic cooperation

EAEU and Vietnam discussed the possibility of expanding trade and economic cooperation

6/13/2019

On June 11, the Chairman of the Eurasian Economic Commission (EEC) Board Tigran Sargsyan and the delegation of the Vietnamese Bank Association headed by its Secretary General Nguyen Toan Thang discussed at the EEC headquarters some prospects of cooperation in the sphere of financial services. The meeting was also attended by the Minister in charge of Trade of the Commission Veronika Nikishina and the EEC Minister in charge of Economy and Financial Policy Timur Zhaksylykov.
The parties considered the possibility of expanding trade and economic cooperation within the Free Trade Area Agreement between the Eurasian Economic Union (EAEU) and Vietnam.
Opening the meeting, the Chairman of the EEC Board Tigran Sargsyan noted that the Commission attaches great importance to cooperation between the EAEU and Vietnam. “It was Vietnam that became the first country we signed the Free Trade Area Agreement with. It centers around trade in goods. The Agreement proved its effectiveness. Trade and economic relations between our countries began developing at a quicker pace. However, there is a high potential for deepening the cooperation. In particular, in the banking sector”, Tigran Sargsyan said.
The increase in trade amounted to 36% (USD 5.9 bln) already in the first full year of the agreement - 2017. At the same time, exports of the Union countries to Vietnam increased by 40% (from USD 1.6 bln to USD 2.3 bln) and imports of goods from Vietnam increased by 35% (from USD 2.7 bln to USD 3.7 bln).
In turn, the Vietnamese party declared that it wants to achieve the maximum improvement in relations with the EAEU and discuss all possibilities for increasing cooperation.
The EEC Minister in charge of Economy and Financial Policy Timur Zhaksylykov told about the Commission’s activities on establishing a common financial market in 2025 which would eliminate barriers to the free movement of capital and financial services. It is planned that the Concept of Establishing the Common Market will be adopted this year.
“We are working at removing restrictions on the movement of capital in the Union market, admitting brokers and dealers to each other’s exchanges and simplifying the procedure for admission of securities trading. The common financial market will improve the quality, increase the availability of financial services and reduce the cost for consumers”, the EEC Minister said.
According to the EEC Minister in charge of Trade Veronika Nikishina, trade in services has an enormous potential. The Member of the Board stressed that the sphere of tourism services is actively developing now, however financial services which are the basis of any economic transaction need to be developed as well.
“We believe that our meeting will not be concluded with just an acquaintance, but we’ll find opportunities to increase cooperation in the sphere of financial services with the help of contacts we’ll establish today and the powers that we and our countries have”, Veronika Nikishina declared.
Risk management, anti-money laundering, digitalization of banking operations can be the subject of further cooperation. The parties will consider the possibility of creating a working group to intensify cooperation.
For reference
The Free Trade Area Agreement between the Eurasian Economic Union (EAEU) and Vietnam came into force in October 2016. It refers primarily to the mutual abolition of trade duties and trade in goods. Regulation of foreign trade in services and investment is within the national competence of the Union countries.