Vietnam and four EFTA states sign free trade agreement in Hanoi
The deal removes or lowers customs duties on industrial, fish and agricultural goods, and covers services and intellectual property rights, among other areas.
Vietnam and the four members of the European Free Trade Association (EFTA) have signed a free trade agreement in Hanoi. The signing took place on Sunday (Oct 18). EFTA includes Iceland, Liechtenstein, Norway and Switzerland, none of which belong to the European Union.
The signing ceremony was attended by To Lam, Vietnam's top leader, along with delegates from the governments of the EFTA states.
What the agreement does
Under the deal, customs duties are removed or lowered, with industrial, fish and agricultural goods among the imports covered. Among other fields, the two sides say the pact extends to services trade, trade remedies, sustainable development and intellectual property rights.
A government statement said Vietnam saw the agreement as proof of the parties' determination to "reinforce the rules-based trading system amid continued volatility in the global economy". The government also said it was expected to help Vietnam "diversify its import and export markets" and "integrate more deeply into global value chains".
Trade between the two sides
The association says trade between EFTA and Vietnam last year was worth 4.8 billion euros (US$5.4 billion). Pharmaceutical products, fish and both electrical and mechanical machinery topped the list of what EFTA sent to Vietnam. Vietnam's main exports to EFTA were machinery, footwear and apparel.
A long road to signing
Talks officially began in 2012, and negotiations were concluded in July. They had stalled from 2018 before being relaunched in September last year.
CNA reported that the agreement came after sweeping US tariffs under President Donald Trump disrupted global trade, leaving Vietnam facing a heavy tax on its US exports while talks with Washington continue.
Experts say the deal reflects a shared move to broaden commercial ties and depend less on major trading partners. Scholar Do Dinh Lam Khang, who specialises in history and politics, told AFP that "the agreement is a joint effort to turn economic integration into greater strategic autonomy and to develop alternative commercial relationships rather than relying exclusively on their largest partners". He added that Vietnam's aim of shifting toward activities with higher added value could be helped by deeper economic links with the EFTA countries.
