The Eurasian economic union and vietnam: prospects for trade and investment cooperation enforsement

Abstract

The article under review continues the topic started in the “Public Administration” Journal (No. 5 for 2016) on possible prospects for investment cooperation development of the Eurasian Economic Union with the Socialist Republic of Vietnam. The initial results are analyzed (after the ratification of Free trade zone agreement between the EEU and Vietnam). The trade structure peculiarities are considered. The author also discusses prospects of development of bilateral investment relations taking into account forecasts of economic growth. Vietnam is demonstrating sustainable successful economic development and will continue doing so in the medium term. Crucially, it also happens against the background of a general slowdown of the global economy and poor performance of investments. The bilateral negotiations with the EEU member-countries actively initiated by Vietnam immediately after signing the agreement demonstrate the intention of the Vietnamese side not to limit itself only to the Russian market. The production and trade orientation of Vietnam is mostly aimed at servicing the global chain of the added value, because, by importing into Vietnam raw materials and components and then exporting finished goods in the form of high-precision equipment, electronics or textiles, trans-national corporations can reduce considerably their costs. As for the agriculture and food industry, Vietnam is an active participant of the global agricultural value chains with a very high proportion of exports.