Vietnam and four European countries sign free trade deal — Channel NewsAsia

Vietnam and four European countries that are not members of the European Union signed a free trade agreement in Hanoi on October 18. The agreement was concluded between Vietnam and the European Free Trade Association, which includes Iceland, Liechtenstein, Norway and Switzerland.

Tariff reductions

The agreement provides for the elimination or reduction of customs duties, including on imports of industrial products, fish and agricultural goods. The document also covers trade in goods and services, intellectual property rights, trade remedies and sustainable development.

The signing took place in the presence of Vietnam’s top leader To Lam and representatives of the governments of EFTA states. As Channel NewsAsia reports, the Vietnamese government said the agreement demonstrates the parties’ commitment to strengthening a rules-based trading system amid global economic instability.

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Negotiations lasted more than a decade

The parties concluded negotiations in July, although they officially began in 2012. The talks had been suspended since 2018 and resumed in September last year.

Vietnamese authorities expect the agreement to help the country diversify its import and export markets and integrate more deeply into global value chains. According to the association, trade between EFTA and Vietnam amounted to €4.8 billion, or $5.4 billion, last year. EFTA countries mainly supplied Vietnam with electrical and mechanical equipment, fish and pharmaceutical products, while Vietnam exported machinery, footwear and clothing.