Vietnam and four European countries signed a free trade agreement on Sunday in Hanoi. This agreement was announced by the governments of Vietnam and Norway and includes the European Free Trade Association (EFTA), which consists of Norway, Switzerland, Iceland, and Liechtenstein.
Details of the Agreement
The four European countries are not part of the European Union (EU). Official negotiations between Vietnam and EFTA began in 2012, were halted in 2018, and only resumed last year.
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This agreement, signed between Vietnam, as the fastest-growing economy in Southeast Asia, and the European Free Trade Association, includes exemptions or reductions in tariffs on imports of industrial products, fish, and agricultural products.
Benefits of the Agreement for Vietnam
According to this agreement, about half of Norway's exports to Vietnam will be duty-free, and over 98% of them will be duty-free within seven years. The signing parties stated that this agreement includes trade in goods and services, intellectual property rights, trade measures, and sustainable development.
Last year, the trade value between EFTA and Vietnam reached 4.8 billion euros ($5.4 billion). Vietnam stated that this agreement reflects the parties' determination to strengthen the rules-based trading system amid global economic fluctuations.
The Vietnamese government also predicts that this agreement will help the country diversify its import and export markets and integrate more deeply into global value chains.
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