Vietnam, EFTA conclude free trade agreement talks

The announcement was made through a joint communiqué issued on July 2 following the EFTA Ministerial Meeting in Reykjavík, Iceland. The agreement concludes months of intensive negotiations between Vietnam and the four EFTA member states - Iceland, Liechtenstein, Norway, and Switzerland.

The ministerial discussions brought together Iceland’s Minister for Foreign Affairs Þorgerður Katrín Gunnarsdóttir, Norway’s Minister of Foreign Affairs Espen Barth Eide, Liechtenstein’s Deputy Prime Minister and Minister of Foreign Affairs Sabine Monauni, Switzerland’s President and Head of the Federal Department of Economic Affairs, Education and Research Guy Parmelin, and Vietnam’s Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan.

Negotiations on the EFTA-Vietnam Free Trade Agreement resumed in Geneva on September 8, 2025, and were completed after five rounds of talks. The agreement is designed as a modern and comprehensive framework covering trade in goods and services, investment, intellectual property rights, government procurement, rules of origin, trade remedies, sustainable development, technical barriers to trade, sanitary and phytosanitary measures, support for small and medium-sized enterprises, and economic cooperation.

The FTA aims to strengthen economic relations by reducing or eliminating tariffs, improving market access, facilitating trade, and encouraging sustainable growth between Vietnam and the EFTA countries.

Speaking at the ministerial meeting, Norway’s Foreign Minister Espen Barth Eide, serving as the EFTA spokesperson for the negotiations, highlighted the importance of deepening partnerships amid global economic uncertainty.

“At a time of global uncertainty, strengthening ties with trusted trade partners is more important than ever. I am pleased that we have reached an ambitious and forward-looking free trade agreement that will significantly improve market access for goods and services, while also strengthening cooperation in areas such as trade and sustainable development and intellectual property rights. By ensuring more predictable conditions, I am confident that the EFTA–Vietnam agreement will open up new commercial opportunities for businesses across the EFTA states and Vietnam.”

Vietnam’s Deputy Minister Nguyen Sinh Nhat Tan described the agreement as a strategic step forward, emphasizing the complementary strengths of both sides.

According to Tan, the agreement brings together the EFTA states, recognized globally for their leadership in innovation, advanced technology, finance, clean energy, and sustainable development, with Vietnam, one of Asia’s fastest-growing economies and an emerging regional manufacturing, trade, and investment hub.

He added that the FTA would establish a stronger foundation for economic cooperation by creating a stable, transparent, and predictable business environment that supports increased trade, investment, technology transfer, and knowledge exchange.

Trade between Vietnam and the EFTA member states has expanded steadily over the past decade. Bilateral trade reached 4.8 billion euros ($5.5 billion) in 2025, according to official figures. Vietnam recorded a trade surplus of 2.5 billion euros, a substantial increase from 500 million euros ten years earlier. Swiss trade statistics exclude gold transactions.

The EFTA countries' leading exports to Vietnam in 2025 included electrical machinery, pharmaceutical products, fish, and mechanical machinery. Vietnam’s primary exports to the EFTA market were electrical machinery, footwear and apparel, and mechanical machinery. These product categories have maintained strong momentum over the past decade, with average annual growth exceeding 10 percent.

The successful conclusion of the negotiations marks the beginning of a new chapter in Vietnam-EFTA relations, providing a robust framework for expanding trade and investment while fostering cooperation across a broad range of strategic sectors.

Earlier, Qazinform reported Vietnam ranks 18th among the world's largest exporting economies in 2025.