The Trade Promotion Agency (VIETRADE) under the Ministry of Industry and Trade (MOIT) has advised Vietnamese exporters to proactively adjust their export plans to the Eurasian Economic Union (EAEU) markets, following recent changes to the bloc’s Generalized System of Preferences (GSP).
Starting October 12, 2021, Vietnam will officially no longer benefit from the EAEU’s GSP. The EAEU comprises five member states: Russia, Belarus, Kazakhstan, Armenia, and Kyrgyzstan.
This change will significantly affect enterprises exporting goods that previously enjoyed GSP tariff preferences — particularly those trading with Russia, Vietnam’s largest market within the union.
Transition from GSP to FTA Preferential Tariffs
The Trade Promotion Agency emphasized that businesses must study preferential tariff rates and rules of origin (ROO)under the Vietnam–EAEU Free Trade Agreement (FTA), which will now serve as the main framework for tariff benefits in place of the GSP mechanism.
Earlier, the Vietnamese Embassy in Russia issued a notice (Official Telegram No. 157/SQVN-21) confirming that the EAEU had revised the list of GSP-eligible developing countries.
According to Decision No. 17 dated March 5, 2021, issued by the Eurasian Economic Commission (EEC), 75 developing nations — including Vietnam — and two least developed countries will be removed from the GSP listeffective October 12, 2021.
The GSP is a unilateral import tariff preference system granted by the EAEU to support developing and least developed nations. Although the benefit could have ended once the Vietnam–EAEU FTA came into force in 2016, the EAEU extended Vietnam’s access to GSP preferences for an additional five years as a goodwill gesture.
Vietnam’s Trade with the EAEU
In 2021, the EAEU conducted a full review of eligible countries, removing major economies such as China, South Korea, India, Singapore, Brunei, and Vietnam based on updated development criteria.
Despite the impact of the COVID-19 pandemic, bilateral trade between Vietnam and the EAEU reached USD 5.2 billion in 2020, up 6.5% from 2019.
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Vietnam’s exports to the EAEU: USD 3.1 billion, up 7.2%.
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Imports from the EAEU: USD 2.1 billion, up 5.5%.
Within the EAEU, Russia accounts for nearly 93.7% of Vietnam’s total trade value. The remaining partners contribute modest shares: Kazakhstan (4.6%), Belarus (1.4%), and Armenia and Kyrgyzstan (around 0.12%) combined.
Expert Recommendations
Trade officials warn that Vietnamese exporters must act early to minimize disruptions once GSP preferences end. Key recommendations include:
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Reassessing export product portfolios to identify goods benefiting from FTA tariff schedules.
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Ensuring compliance with EAEU FTA rules of origin to qualify for preferential access.
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Strengthening logistics and certification procedures, particularly for exports to Russia and Kazakhstan.
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Exploring new partnerships and distribution channels within lesser-developed EAEU markets such as Armenia and Kyrgyzstan.
By proactively adjusting strategies and leveraging the Vietnam–EAEU FTA, Vietnamese businesses can maintain competitiveness and expand export opportunities despite the removal from the EAEU’s GSP system.