Vietnam signs free trade deal with four European nations

Vietnam and four European nations outside the EU inked a free trade agreement in Hanoi on Sunday, aiming to broaden their market horizons amid disruptions caused by US tariffs. The pact, between Vietnam's rapidly growing economy and the European Free Trade Association (EFTA), which comprises Iceland, Liechtenstein, Norway, and Switzerland, eliminates or diminishes customs duties on various imports and exports.

The deal was witnessed by Vietnam's top leader To Lam and representatives from EFTA governments, signaling a commitment to bolstering the rules-based trading system amid global economic turbulence, according to a government statement. The agreement, concluded in July after a decade-long negotiation hiatus, is expected to diversify Vietnam's import and export markets and deepen its integration into global value chains.

The move comes as the US under President Donald Trump launched a series of tariff hikes, leaving Vietnam with significant tax implications on its exports to the US. Experts view the new deal as an initiative to foster economic integration and reduce dependence on major trading partners, particularly in the wake of US trade pressure on European countries.

The agreement covers trade in goods and services, intellectual property rights, trade remedies, and sustainable development. In 2022, bilateral trade between the EFTA and Vietnam amounted to 4.8 billion euros, with electrical and mechanical machinery, fish, and pharmaceutical products being the top exports from the EFTA to Vietnam. Machinery, footwear, and apparel were among Vietnam's major exports to the EFTA.