Vietnam signs free trade deal with four European nations
The deal, between Southeast Asia's fastest-growing economy and the European Free Trade Association (EFTA) eliminates or reduces customs duties, including on imports of industrial, fish and agricultural products.
Hanoi, Vietnam witnessed the signing of a free trade agreement on Sunday (Oct 18) between the country and four European nations not part of the European Union. The pact, involving Southeast Asia's fastest-growing economy and the European Free Trade Association (EFTA) comprising Iceland, Liechtenstein, Norway, and Switzerland, aims to broaden market opportunities for all parties involved.
The deal, which eliminates or reduces customs duties on various products, including industrial goods, fish, and agricultural items, was signed in the presence of Vietnam's top leader To Lam and EFTA representatives. Vietnam's government emphasized the agreement's role in strengthening the rules-based trading system amid global economic volatility.
The parties had been negotiating since 2012, with talks resuming in September 2022 after a decade-long hiatus. The agreement is expected to help Vietnam diversify its import and export markets and deepen its integration into global value chains. Experts believe the new deal reflects a shared goal to diversify commercial ties and reduce reliance on major trading partners, particularly in the face of US trade pressure on European countries.
Bilateral trade between the EFTA and Vietnam last year reached 4.8 billion euros, with electrical and mechanical machinery, fish, and pharmaceutical products being the top exports from the EFTA to Vietnam.
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