Vietnam signs free trade deal with four European countries

Vietnam officially signed a free trade agreement with four European countries in Hanoi on Sunday. The deal, announced by Vietnam and Norway, involved the European Free Trade Association (EFTA), consisting of Norway, Switzerland, Iceland, and Liechtenstein. These four European nations are not members of the European Union (EU). Discussions between Vietnam and the EFTA began in 2012, were paused in 2018, and resumed last year.

The agreement, which benefits Vietnam - the fastest-growing economy in Southeast Asia, waives or lowers customs duties on various products, including industrial goods, fish, and agriculture. Under the agreement, approximately half of Norway's exports to Vietnam will be duty-free, with over 98% becoming duty-free within seven years.

The deal covers a wide range of areas, including trade in goods and services, intellectual property rights, trade remedies, and sustainable development. Last year, the combined trade value between the EFTA and Vietnam reached €4.8 billion ($5.4 billion). Vietnam emphasized the agreement's importance in strengthening a rules-based trading system amid global economic volatility and helping Vietnam diversify its markets and integrate deeper into global value chains.