Japan and Viet Nam on Thursday signed a free trade agreement, promising to cut tariffs on 92% of the goods traded between them.

The deal was signed on Thursday by Japanese Foreign Minister Hirofumi Nakasone and Vietnam’s minister for industry and trade Vu Huy Hoang.

The deal is expected to take at least 10 years to be implemented fully, and it needs to be approved by Japan’s parliament to come into effect.

As per the deal, Viet Nam will get duty-free access to the Japanese market for shrimp, durian, okra and other farm and marine products, while Japan will be allowed to send auto parts, steel and electronic goods duty free to Vietnam for assembly.

“The agreement will strengthen the mutually beneficial economic collaboration between our two countries by facilitating freer flows of goods, services and investments,” the two ministers said in a joint statement.

Thursday’s trade agreement provides for a freer bilateral trade than a wider trade agreement between Japan and the whole of the Association of Southeast Asian Nations, which includes Viet Nam. (RTTNews)