Vietnam concludes free trade agreement negotiations with EFTA

The EFTA and the Vietnamese government officially announced on July 2 the conclusion of negotiations for the Vietnam-EFTA Free Trade Agreement, according to the Multilateral Trade Policy Department under the Ministry of Industry and Trade.

The agreement is expected to mark a new phase of cooperation, laying the foundation for stronger trade, investment, and broader collaboration between Vietnam and the four EFTA member states Switzerland, Norway, Iceland, and Liechtenstein, the Vietnam News Agency reported.

EFTA told Reuters on July 2 it had successfully concluded negotiations with Vietnam on the free trade agreement as the bloc seeks to diversify its trade ties amid global tariff tensions.

The announcement followed the EFTA Ministerial Meeting in Iceland on June 22, where the two sides concluded the negotiation process after several days of technical talks in Reykjavík. 

The latest round was held from June 17 to June 22.

The agreement covers a wide range of areas, including trade in goods and services, rules of origin, sanitary and phytosanitary measures, technical barriers to trade, investment, intellectual property, trade remedies, government procurement, trade and sustainable development, small- and medium-sized enterprises, as well as cooperation and capacity building.

The agreement aims to strengthen trade ties between Vietnam and the EFTA countries by eliminating or reducing tariffs, facilitating trade, and promoting sustainable development.

Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan said the agreement is particularly significant because it brings together economies with complementary strengths.

He said the EFTA countries are global leaders in innovation, technology, finance, clean energy, and sustainable development, while Vietnam has emerged as one of Asia's most dynamic economies and an increasingly important manufacturing, trade, and investment hub in the region.

Trade between EFTA and Vietnam has grown steadily over the past decade.

Bilateral trade reached 4.8 billion euros (US$5.6 billion) in 2025, with Vietnam posting a trade surplus of 2.5 billion euros ($2.9 billion), up sharply from 500 million euros ($0.6 billion) a decade earlier, excluding Switzerland’s gold trade.

EFTA’s main exports to Vietnam include electrical machinery, seafood, pharmaceuticals, and mechanical machinery, while Vietnam primarily exports electrical machinery, footwear, garments, and mechanical machinery.

All of these product categories have recorded average annual growth of more than 10 percent over the past decade.