Viet Nam, EFTA finalize negotiations on free trade deal

The trade deal is expected to open a new chapter in bilateral cooperation, creating a solid framework for promoting trade and investment, and expanding collaboration across sectors.

Viet Nam and EFTA, comprising Iceland, Liechtenstein, Norway and Switzerland, issued a joint communiqué announcing the conclusion of the talks on July 2.

The communiqué followed the EFTA Ministerial Meeting held in Reykjavík, Iceland, on June 22. Negotiation teams from both Viet Nam and EFTA had held intensive technical talks in Reykjavík in the week leading up to the Ministerial-level discussions.

The Ministerial-level discussions involved Þorgerður Katrín Gunnarsdóttir, Minister for Foreign Affairs of Iceland, Espen Barth Eide, Minister of Foreign Affairs of Norway, Sabine Monauni, Deputy Prime Minister and Minister of Foreign Affairs of Liechtenstein, Guy Parmelin, President and Head of the Federal Department of Economic Affairs, Education and Research of Switzerland, and Nguyen Sinh Nhat Tan, Deputy Minister of Industry and Trade of Viet Nam. Negotiations on the EFTA–Viet Nam FTA were relaunched on September 8, 2025 in Geneva and took place over five rounds.

The FTA is a comprehensive and modern agreement that comprises numerous areas, including trade in goods, trade in services, rules of origin, sanitary and phytosanitary measures, technical barriers to trade, investment, intellectual property rights, trade remedies, government procurement, trade and sustainable development, small and medium-sized enterprises, and cooperation and capacity building.

The agreement aims to enhance trade relations between Viet Nam and the EFTA states by eliminating or reducing customs duties, facilitating trade, and promoting sustainable development.

Over the past decade, trade between Viet Nam and the EFTA states has grown steadily to EUR4.8 billion (US$5.5 billion) in 2025.

Electrical machinery, fish, pharmaceutical products and mechanical machinery were the EFTA states' top exports to Viet Nam in 2025, while electrical machinery, footwear and apparel, and mechanical machinery were the top imports. These import categories recorded particularly strong growth over the last ten years, with annual average growth rates exceeding 10 percent in all cases.

The conclusion of the negotiations will mark the beginning of a new phase of cooperation, laying a solid foundation for the promotion of trade and investment between the two sides, while also expanding collaboration in areas of mutual interest./.