Vietnam and EFTA sign a trade agreement after 14 years of talks
Vietnam and the four-country European Free Trade Association signed their free-trade agreement in Hanoi on 18 October. The deal covers goods, services and investment after 14 years of negotiations. Annual trade already averages almost 2 billion dollars. Vietnam’s government expects more diversified markets and higher-quality investment; the signing announcement gives no date for entry into force.
Economics & Markets··Evening
Signing follows a long negotiating process
Vietnam and the European Free Trade Association signed their free-trade agreement in Hanoi on 18 October. The association, known as EFTA, comprises Iceland, Liechtenstein, Norway and Switzerland. Vietnam’s Industry and Trade Minister Lê Mạnh Hùng signed for the country, with Party General Secretary and President Tô Lâm witnessing the ceremony. The agreement covers trade in goods and services, investment and a range of rules governing commercial activity between the partners.[1], [2]
The partners completed 21 formal negotiating rounds over 14 years and announced the conclusion of negotiations in a joint declaration on 2 July. EFTA representatives at the signing included Swiss President Guy Parmelin, Liechtenstein Prime Minister Brigitte Haas, Icelandic Foreign Minister Þorgerður Katrín Gunnarsdóttir and Norwegian Foreign Ministry State Secretary Astrid Bergmål.[2]
Goods rules extend to services and procurement
The goods provisions cover tariffs, technical barriers to trade, sanitary and phytosanitary measures, customs procedures and trade defence. Other chapters cover services, investment, intellectual property, government procurement and competition. Provisions also address small and medium-sized businesses, dispute settlement, and trade and sustainable development. The signing announcement does not give an entry-into-force date or product-by-product tariff reduction schedule.[1], [2]
Vietnam’s government expects the agreement to diversify export and import markets and attract investment and technology. Higher-quality investment, management expertise and stronger participation in global value chains are among the expected benefits described in the coverage. These remain objectives for the agreement rather than trade gains already measured after signing.[1], [2]
Existing trade and investment ties
Annual trade between Vietnam and EFTA members averages almost 2 billion dollars. Vietnam sells seafood, footwear, textiles, machinery, electronic equipment and components to the bloc and imports industrial machinery, chemicals, pharmaceuticals and production inputs. At the end of 2025, Switzerland had 234 Vietnamese investment projects with registered capital above 2.4 billion dollars; Norway had 62 projects exceeding 201 million dollars. EFTA businesses operate in industry, food, pharmaceuticals, energy and technology. Innovation, logistics and precision engineering are also identified as areas of investor interest.[1], [2]
