The GU GAZ project is a direct result of the signing by Russia and EAEU of a free trade agreement with Vietnam two years ago. This has led to more than $10 billion in Russian direct investment in the country. Other ASEAN members, such as Cambodia, Indonesia and Thailand, are also negotiating membership of the EAEU. At the same time, the iran agreement carries some political risks. In September 2019, the United States imposed sanctions on the Central Bank of Iran and 25 Iranian companies. The United States also calls for its allies and the international community to adhere to these sanctions. Sanctions against Tehran are likely to continue to expand. With this agreement, Hanoi expects a sharp increase in foreign trade. Trade with Russia is expected to more than double to $10 billion by 2020.
Vietnam signed the free trade agreement with the EU in 2015, making it the first non-regional country to join the bloc. At the same time, Vietnam wants to expand its trade with the EAEU. In his speech at the Eastern Economic Forum in September 2019, Vietnam`s Deputy Prime Minister, Trenh Dinh Dung, proposed a further reduction of customs barriers to improve opportunities to realize his country`s economic potential. Strengthening trade and economic cooperation with Iran is also beneficial for Russia. Commercial sales between the two countries amounted to $1.741 billion in 2018. Russian exports to Iran are estimated at $1.208 billion, while Iranian exports to Russia totaled $533 million. The Deputy Prime Minister of the Russian Federation, Dmitry Kozak, estimates that the Russian economy will earn an additional $150 million a year if the interim agreement is ratified. Other Eurasian countries are also interested in developing their trade and general economic cooperation with Iran.
With the upcoming signing of the Caspian Sea Transport Cooperation Agreement and the creation of a major transport and logistics centre, trade with Iran could increase further. The second agreement was signed with Iran in May 2018 and came into force on October 27, 2019. This is a limited three-year agreement. One year after it comes into force, the parties will begin discussions on a comprehensive free trade agreement. The agreement is limited due to a low level of liberalization. The reduced tariffs cover only 50% of the total volume of trade between the two countries. As far as products are concerned, this means 502 SH codes for the UNION and 360 SH codes for Iran. 33.
Voprosy i otvety po Soglasheniiu o svobodnoi torgovle mezhdu Evraziiskim ekonomicheskim soiuzom i Sotsialisticheskoi Respublikokoi V`etnam (Questions and answers on the free trade agreement between the Eurasian Economic Union and the Socialist Republic of Vietnam), p. 7/ Evraziiskaia ekonomicheskaia komissiia (Eurasian Economic Commission). Type of access: www.eurasiancommission.org/ru/act/trade/dotp/sogl_torg/Documents/Forms/AllItems.aspx According to Nikishina, EAEU`s trade with Vietnam has increased by 40 per cent since the agreement came into force. « Some feared that our exports would remain the same, that we would not be able to take advantage of the opening of the Vietnamese market; Some feared that we would only open our market in Vietnam. These fears proved to be unfounded: our exports increased by 40%, while imports from Vietnam increased by 34%. By 2025, duty-free imports of Vietnamese products will account for 90% of EAEU`s common tariff lines. Armenian leaders saw the construction of a third high-voltage line between Iran and Armenia, as well as the north-south highway, the Meghri hydroelectric power plant and the Meghri Free Economic Zone as the main incentives for trade relations between Armenia and Iran. But these projects have stopped in recent years for internal economic and political reasons. 25. Tsvetov, A.
Shest` voprosov o ZST EAES-V`etnam (Six questions on the EAEU-Vietnam FTA) / Rossiiskii sovet po mezhdunarodnym delam (Russian Council for International Affairs), 29 June 2015.