Vietnam and four European nations signed a comprehensive free trade agreement in Hanoi on Sunday, concluding fourteen years of stalled negotiations and opening new pathways for industrial and agricultural trade. The landmark deal brings together Southeast Asia’s fastest-growing economy and the member states of the European Free Trade Association.
Tariff Reductions and Trade Structures Across the EFTA Bloc
The agreement between Vietnam and the European Free Trade Association—comprising Norway, Switzerland, Iceland, and Liechtenstein—establishes a phased roadmap for lowering customs duties on industrial, fish, and agricultural imports. Long-stalled free trade talks were relaunched in 2025 amid global tensions over U.S. tariffs, eventually concluding negotiations in July. Official talks had originally begun in 2012 before being interrupted in 2018 and later resumed.
🔴 Vietnam to sign EFTA trade deal Sunday; US trade pact still stalledVietnam will sign a free trade agreement with the European Free Trade Association (Switzerland, Norway, Iceland, Liechtenstein) on Sunday in Hanoi, with Swiss Economy Minister Guy Parmelin attending.… pic.twitter.com/16UwkH5S9X
Bilateral trade between Vietnam and the EFTA bloc has consistently averaged approximately $2 billion annually, with association figures placing last year’s total trade value at roughly €4.8 billion ($5.4 billion). Under the terms of the accord, approximately half of Norway’s exports to Vietnam will become tariff-free immediately upon entry into force, with that share climbing to more than 98 percent within a seven-year window.
Vietnam primarily exports seafood, footwear, apparel, machinery, and electronics to the EFTA market. In return, the four European nations supply industrial machinery, chemicals, pharmaceuticals, and raw production materials.
Diplomatic Presence and Investment Footprint in Hanoi
The official signing ceremony took place in Hanoi in the presence of Vietnamese President To Lam, Industry and Trade Minister Le Manh Hung, and Swiss President Guy Parmelin, alongside representatives from other EFTA member states.
Major corporations from the EFTA bloc already maintain an active footprint across Vietnam’s industrial, food, pharmaceutical, energy, and technology sectors. By the end of last year, Switzerland held 234 active projects in the country with registered capital exceeding $2.4 billion, while Norway maintained 62 projects totaling over $0.2 billion in registered capital.
Strategic Objectives Amid Global Economic Volatility
Government statements issued after the signing emphasized that the accord demonstrates a shared commitment to keeping international commerce open. Vietnamese officials noted that the agreement reflects the collective resolve of all participating governments to reinforce the rules-based trading system amid continued volatility in the global economy,
while helping Hanoi diversify its import and export markets
and integrate more deeply into global value chains.
Trade Representative Jamieson Greer stated that the United States and Vietnam had made substantial progress and were very close to reaching a final outcome in separate trade discussions, following Vietnam’s earlier free trade agreement signed with the European Union in 2020.
In a more unpredictable world, Norway needs to diversify its trade relations. Since this Government took office, Norway has signed seven new free trade agreements.
Cecilie Myrseth, Minister of Trade and Industry
The pact provides small and medium-sized enterprises in Switzerland and the other EFTA states with enhanced market access, while offering Vietnamese exporters a reliable gateway into complementary European markets as bilateral economic cooperation expands.