(VOVworld) – Vietnam is selected as the first partner of the Customs Union of Russia, Belarus, and Kazakhstan.

The conclusion of negotiations toward signing an official free trade agreement between Vietnam and the Union will create favorable conditions for Vietnamese businesses to increase exports to the market.

Doctor Luu Bich Ho, former director of the Institute for Development Strategy, said the agreement will be a new and comprehensive trade deal covering commodity trading, services, and investment. It will offer more opportunities for the Union to boost relations with other ASEAN members.

Ho noted “Russia itself is a big market. Markets in the Customs Union will help Vietnam export a great volume of goods, particularly agricultural produce. Besides the Union tends to be expanded meaning the market will develop further.”

Once the agreement takes effect, 80% of Vietnamese commodities will be tax free.