Vietnam has signed a free-trade agreement with the four members of the European Free Trade Association (EFTA) Norway, Switzerland, Iceland and Liechtenstein the governments of Norway and Vietnam announced on Sunday.
Vietnam’s trade ministry said the agreement was signed in Hanoi with representatives of the EFTA member countries, marking a step towards closer economic cooperation between Southeast Asia and the European market.
Tariff Reductions for Norwegian Exports
Under the agreement, around half of Norway’s exports to Vietnam will become tariff-free when the deal enters into force. The share is expected to rise to more than 98% within seven years, according to a statement from the Norwegian government.
The agreement follows the revival of long-stalled negotiations last year, amid growing global trade tensions over US tariffs. Negotiations were concluded in July.
Key Trade Sectors
Vietnam’s trade ministry said its main exports to the EFTA market include seafood, footwear, textiles, machinery and equipment, electronics and components.
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Vietnam imports industrial machinery and equipment, chemicals, pharmaceuticals and raw materials used in manufacturing from EFTA member countries.
Bilateral trade between Vietnam and the four EFTA countries has averaged approximately $2 billion annually, according to Vietnam’s trade ministry.
The agreement is intended to strengthen trade ties and improve market access between the two sides. Its tariff provisions will take effect once the agreement enters into force.
