Vietnam, EU sign free trade pact

The signing of free trade agreement between Vietnam and the European Union would boost trade as the treaty would remove almost all tariffs for goods traded between Vietnam and the EU's 28 member countries.

Hanoi: Vietnam and the European Union signed a free trade agreement on Sunday, opening opportunities to further boost trade between the euro bloc and one of Southeast Asia's biggest manufacturing nations.

The agreement, which was signed by European Commissioner for Trade Cecilia Malmstrom and Vietnamese Trade Minister Tran Tuan Anh in Hanoi, Vietnam's capital, will eliminate almost all tariffs for goods traded between Vietnam and the EU's 28 member countries.

Vietnamese Prime Minister Nguyen Xuan Phuc called it a special day for relations between Vietnam and the EU.

Once the deal takes effect, the EU will lift 85% of its tariffs on Vietnamese goods, gradually cutting the rest over the following seven years.

Vietnam is the EU's second-largest trading partner in Southeast Asia, with trade turnover of $56 billion last year, according to the national general statistics office.

This is the EU's second free trade agreement in the Southeast Asian region after one with Singapore.

It is viewed as a stepping stone for pursuing a comprehensive deal with ASEAN, a market with a population of 650 million people.