Vietnam signs free trade deal with four European nations

Vietnam and four European nations not part of the European Union inked a free trade agreement in Hanoi on Sunday, aiming to expand their markets as US tariffs disrupt global commerce. Representatives from the European Free Trade Association (EFTA), comprising Iceland, Liechtenstein, Norway, and Switzerland, joined Vietnam's top leader To Lam in signing the deal.

The agreement eliminates or reduces customs duties on industrial, fish, and agricultural imports, benefiting both parties. Vietnam's government highlighted the pact's role in reinforcing a rules-based trading system amid global economic volatility. The deal, which followed over a decade of negotiations, is expected to help Vietnam diversify its import and export markets and deepen integration into global value chains.

Negotiations were reignited in September last year after being stalled since 2018. The new agreement reflects a shared goal to diversify commercial ties and minimize dependence on major trading partners. History and politics scholar Do Dinh Lam Khang noted that the deal supports Vietnam's ambition to shift towards higher-value-added activities and enhances strategic autonomy in the face of US trade pressures on European countries.

Bilateral trade between EFTA and Vietnam last year reached 4.8 billion euros. Key exports included electrical and mechanical machinery, fish, and pharmaceutical products from the EFTA nations, while machinery, footwear, and apparel were Vietnam's primary exports to the group. Established as a counterbalance to the European Economic Community, the EFTA is closely aligned with but not part of the European Union.