Vietnam signs free trade deal with four European countries

Vietnam signs free trade deal with four European countries

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Vietnam has signed a free trade agreement with the European Free Trade Association (EFTA), which comprises Norway, Switzerland, Iceland, and Liechtenstein. The deal was announced by the governments of Vietnam and Norway.

The agreement covers trade in goods and services, intellectual property rights, and sustainable development, among other areas. It waives or reduces customs duties, including on imports of industrial, fish, and agricultural products.

According to the Norwegian government, around half of Norway's exports to Vietnam will be tariff-free, with more than 98% to be tariff-free within seven years. The trade value between the EFTA and Vietnam stood at €4.8 billion ($5.4 billion) last year, according to the association.

Vietnam's Trade Ministry stated that the agreement shows the parties' resolve to 'reinforce the rules-based trading system amid continued volatility in the global economy.' It is also expected to help Vietnam 'diversify its import and export markets' and 'integrate more deeply into global value chains.'

The official talks between Vietnam and the EFTA began in 2012, but were interrupted in 2018 and only resumed last year. The agreement is a significant development in Vietnam's trade relations with European countries.