Iceland, Liechtenstein, Norway, and Switzerland, which make up the European Free Trade Association, signed the FTA with Vietnam earlier this month, aiming to reduce tariffs and strengthen trade ties.
According to the Norwegian government, once the deal comes into force, around half of Norwegian exports will enter Vietnam tariff-free, with the proportion projected to surge past 98%within seven years. Meanwhile, Vietnamese exports to the EFTA will benefit from duty-free access or reduced customs duties.
“By eliminating tariffs on nearly all current exports from Iceland, Liechtenstein, Norway, and Switzerland to Vietnam either upon entry into force or within 16 years at most, the Agreement creates new opportunities across a wide range of sectors from seafood and machinery to watches and chocolate,” Asdís Ólafsdóttir, Head of Communications at EFTA Secretariat, told Trade Finance Global.
Vietnam is the sixth country from ASEAN to sign an FTA with EFTA. Trade between Vietnam and EFTA countries has grown fivefold over the past decade.
