Vietnam and EFTA pen landmark free trade agreement in Hanoi
VOV.VN - Vietnam and the four member states of the European Free Trade Association (EFTA) have signed a free trade agreement, opening new prospects for trade, investment and innovation following 14 years of negotiations.
The signing ceremony was held in Hanoi on October 18 and witnessed by General Secretary of the Communist Party of Vietnam Central Committee and State President To Lam.
Vietnamese Minister of Industry and Trade Le Manh Hung signed the agreement alongside representatives of EFTA’s four member states, namely Switzerland, Norway, Iceland and Liechtenstein.
The signing marks an important milestone in Vietnam’s economic relations with the four European economies and reflects both sides’ commitment to strengthening economic cooperation, promoting free trade and supporting a rules-based international trading system amid continued global uncertainty.
A comprehensive framework for trade and investment
The Vietnam–EFTA Free Trade Agreement, known as VEFTA, covers a broad range of areas, including trade in goods, tariffs, technical barriers to trade, sanitary and phytosanitary measures, customs procedures and trade remedies.
Its provisions also extend to trade in services, investment, intellectual property, government procurement, competition, small and medium-sized enterprises, dispute settlement, and trade and sustainable development.
The agreement is expected to improve market access for businesses on both sides, helping Vietnam diversify its export and import markets while strengthening its participation in global value chains. It could also create further opportunities to attract high-quality investment, advanced technology and management expertise from EFTA economies.
Building on growing economic ties
Economic and trade relations between Vietnam and EFTA have developed steadily, supported by complementary trade structures and business demand on both sides.
In 2025, bilateral trade reached EUR4.8 billion, with Vietnam recording a trade surplus of EUR2.5 billion, according to figures reported by Vietnam’s Ministry of Industry and Trade. The figures exclude Switzerland’s gold trade.
Vietnam’s main exports to EFTA markets include seafood, footwear, textiles and garments, machinery, electronic products and components. In return, Vietnam imports machinery and industrial equipment, chemicals, pharmaceuticals and production inputs from the four countries.
Investment cooperation has also expanded. By the end of 2025, Switzerland had 234 investment projects in Vietnam with registered capital exceeding US$2.4 billion, while Norway had 62 projects worth more than US$201 million.
Businesses and investors from EFTA are active in sectors including industry, food, pharmaceuticals, energy and technology. Further cooperation is being explored in innovation, high technology, logistics and precision engineering.
With its wide-ranging commitments, VEFTA is set to provide a stronger framework for expanding commercial ties, improving business competitiveness and encouraging sustainable economic growth. Its practical benefits will depend on implementation, including the completion of the relevant procedures before the agreement enters into force, as well as businesses’ ability to meet market requirements and make effective use of its commitments.
Vietnam–EFTA trade deal opens new opportunities after 14 years of negotiations
VOV.VN - Vietnam’s free trade agreement with the European Free Trade Association (EFTA) opens up new prospects for exports and investment, with tariff commitments offering wider market access while placing greater demands on businesses to meet high standards.
