The Norwegian Parliament (Storting) has expressed positive signals regarding the long-awaited free trade agreement (FTA) under negotiation since 2012 between Vietnam and the European Free Trade Association (EFTA), which includes Norway.

From January 20 to 23, a Storting delegation led by Aslaug Sem-Jacobsen of the Centre Party will visit Vietnam.

Comprising representatives from various parties within the Storting, this delegation represents the collective voice of the Norwegian Parliament in the discussions.

In an exclusive interview with Tuoi Tre (Youth) newspaper, Sem-Jacobsen shared insights on two key topics: the progress of FTA negotiations between Vietnam and EFTA, and the Just Energy Transition Partnership (JETP), in which Norway plays an active role.

Ready to quickly ratify FTA with Vietnam

The negotiation period has been quite long but the accord has not been signed yet. What is the Storting's view on this negotiation? What role does the Storting play during this negotiation?

Bilateral trade between Norway and Vietnam has increased steadily over the last 10 years. It currently stands at approximately US$1.35 billion in total, but the potential to grow further is significant. This is why the Norwegian Parliament very much welcomes a comprehensive, modern, and ambitious free trade agreement between EFTA and Vietnam. We hope the negotiations will speed up and be concluded soon.

Vietnam is an important trading partner for Norway and an important partner within ASEAN. The conclusion of a free trade agreement with Vietnam is a priority for our government and for the Norwegian Parliament. When the agreement is concluded and signed, it is the role of our parliament to give its consent before the agreement can enter into force. We foresee a smooth and quick ratification process as soon as an agreement is concluded and signed. The negotiations have the full support of our parliament.

We believe that a free trade agreement will increase the trade potential between Vietnam and Norway, and at the same time create a long-term, stable, and predictable framework for broad economic cooperation. We hope this will open doors to new and fruitful cooperation within the green and blue economy. We believe the focus on the green transition and the blue economy will only increase in the years to come. A free trade agreement would create a win-win situation for both our countries, fostering partnerships where both sides can collaborate and mutually benefit.

We believe that strengthening our parliamentary relations will also contribute positively to this cooperation.

According to Vietnam's Ministry of Industry and Trade, there are three main remaining issues in the Vietnam-EFTA negotiations. Those are market access for trade in goods, intellectual property, and government procurement. In addition, a new issue has arisen, which is renegotiation of the Trade and Sustainable Development Chapter. From the perspective of the Storting, what should Vietnam do to facilitate the progress?

Unfortunately, there seems to have been little progress in the negotiations since negotiators last met for a full round in 2018. From the view of the Norwegian Parliament, we hope that this situation can be turned around and that negotiations can resume very soon.

Norway and EFTA stand ready to resume the process when there is willingness on both sides to move forward with an ambition to conclude a modern and comprehensive free trade agreement. This position has the full support of the Norwegian Parliament.

EFTA has recently concluded an FTA with Thailand and expects to be able to conclude negotiations with Malaysia before summer 2025. Vietnam will then soon be the only ASEAN country with a significant economy without an agreement with EFTA. We hope to see this situation altered with a comprehensive and ambitious trade agreement being concluded also with Vietnam in the near future.

EFTA is giving priority to developing its relations with ASEAN and its member countries. Last year a joint declaration on cooperation between ASEAN and EFTA was adopted. We believe concluding trade agreements with individual ASEAN countries like Vietnam is an important step on the way to broader cooperation with ASEAN as a bloc.

Strategic partnership on energy transition

Norway is one of the international partner groups for JETP in Vietnam. After Vietnam announced its resource mobilization plan to implement JETP, what will Norway do to realize its commitment to Vietnam? Are there any pilot projects to be announced in Vietnam soon?

Through JETP, Norway has committed up to $250 million in investments through the Climate Investment Fund managed by NORFUND, the Norwegian government’s investment fund for developing countries. NORFUND is actively looking for investment opportunities in the renewable energy sector in Vietnam, as well as other projects that could contribute to reducing greenhouse gas emissions. Finalizing relevant energy and investment policy reforms and regulatory frameworks will be important to provide the necessary predictability for investors and hence unlock capital flows.

In addition, Norway is supporting two of the first eight projects under JETP. First, together with UNDP, Norway has supported the Vietnamese Ministry of Natural Resources and Environment’s work to develop a framework for marine spatial planning, which was approved by the National Assembly last year. The marine spatial planning will be critical to enable zoning for offshore wind. Pilot programs in Hai Phong, Quang Ninh, and Khanh Hoa will start this year.

Second, Norway is collaborating with the cement industry to scale up co-processing technology, leveraging expertise from the Norwegian research institute SINTEF.

This could help reduce total GHGs emissions in Vietnam by nearly 20 percent. Co-processing makes it possible to replace coal with non-recyclable plastic as fuel in the cement industry, hence significantly reducing greenhouse gas emissions as well as reducing plastic waste and pollution.

Last year, when the vice-president of Vietnam paid a visit to Norway, the two sides discussed the possibility of establishing a strategic partnership in the field of green energy transition and sustainable ocean economy. From the perspective of the Storting, could you please give some updates on those issues? In addition to the above fields, in which areas can Vietnam and Norway further strengthen cooperation for mutual benefits?

We are very pleased about the decision to establish a strategic partnership in the field of green energy transition, which was reached in a meeting between Vice-President Vo Thi Anh Xuan and Prime Minister Jonas Gahr Støre in Oslo in November 2023. We know that modalities are being discussed between the relevant ministries on both sides, and hope that the partnership can be established soon.

Norway and Vietnam share common interests in addressing climate change and preserving clean, healthy, and productive oceans. A significant portion of our current collaboration focuses on these objectives, both through bilateral initiatives and within multilateral frameworks.

Norway is a global leader in sustainable solutions in renewable energy and green shipping, as well as aquaculture and circular economy. More than 40 Norwegian companies are already engaged in Vietnam, most of them in these sectors. We believe there are further opportunities for business cooperation that brings advanced sustainable solutions and know-how as well as mutual economic benefits. A strategic partnership for green energy transition and sustainable ocean economy would give Norway and Vietnam a platform to enhance our cooperation in these high-priority sectors.

Erna Solberg, former Norwegian prime minister and deputy head of the Storting delegation, shared her thoughts with Tuoi Tre on returning to Vietnam after a decade.

I have very fond memories of my visit to Vietnam as prime minister in 2015. The political meetings that we held back then centred around the UN Sustainable Development Goals. I am pleased to see that the focus on sustainable development remains so strong in Vietnam and I am very impressed by developments since 2015.

I am glad that Norway engages with Vietnam on energy transition through the multilateral JETP and that Norway and Vietnam are now working toward a strategic partnership on energy transition, circular economy, and ocean management. I am sure we will discuss this in our political meetings in Hanoi and Hue during our visit.

I also remember a train journey back in 2015 to the northern part of the country. This left a great impression on me of your beautiful country. I look forward to seeing different parts also this time around.

Finally, I recall the meaningful discussions we had about your efforts to promote diversity in society and uphold the rights of minorities.

In 2015, we also addressed the critical issue of combating human trafficking, particularly the trafficking of women.

I’m eager to learn about the progress that has been made in these areas since then.

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