Vietnam signs free trade deal with four European countries

Vietnam and four European countries signed a free trade agreement in Hanoi on Sunday.

The deal was announced by the governments of Vietnam and Norway.

Vietnam's Trade Ministry said it signed the deal with the European Free Trade Association (EFTA), which is made up Norway, Switzerland, Iceland and Liechtenstein.

The four European countries are not part of the European Union (EU).

The official talks between Vietnam and the EFTA began in 2012. The talks were interrupted in 2018 and only resumed last year.

How does the deal benefit Vietnam?

The agreement between Vietnam, which is Southeast Asia's fastest-growing economy, and the European Free Trade Association (EFTA) waives or reduces customs duties, including on imports of industrial, fish and agricultural products.

Under the deal, around half of Norway's exports to Vietnam will be tariff-free, with more than 98% to be tariff-free within seven years, the Norwegian government said in a statement.

According to the signing parties, the deal covers trade in goods and services, intellectual property rights, trade remedies and sustainable development, among other areas, both parties say.

Last year, the trade value between the EFTA and Vietnam stood at €4.8 billion ($5.4 billion), according to the association.

Vietnam said the agreement showed the parties' resolve to "reinforce the rules-based trading system amid continued volatility in the global economy," according to a government statement.

It was also expected to help Vietnam "diversify its import and export markets" and "integrate more deeply into global value chains," the government said.