Vietnam–EFTA Free Trade Agreement Creates New Trade Opportunities
The Vietnam–EFTA Free Trade Agreement (VEFTA) was officially signed in Hanoi on October 18, 2026, marking an important milestone in economic and trade relations between Vietnam and the four member states of the European Free Trade Association (EFTA). The Agreement is expected to open up new opportunities for trade and investment, promote innovation and sustainable development, and bring tangible benefits to the people and business communities of both sides.
Vietnam–EFTA Free Trade Agreement Officially Signed
Under the witness of General Secretary and State President To Lam, Minister of Industry and Trade Le Manh Hung and representatives of the four member states of the European Free Trade Association (EFTA) officially signed the Vietnam–EFTA Free Trade Agreement (VEFTA).
The EFTA representatives participating in the signing ceremony included Swiss Federal President and Minister of Economic Affairs, Education and Research Guy Parmelin; Liechtenstein Prime Minister and Minister responsible for Government Affairs and Finance Brigitte Haas; Icelandic Minister for Foreign Affairs Þorgerður Katrín Gunnarsdóttir; and Norwegian State Secretary at the Ministry of Foreign Affairs Astrid Bergmål.
The signing of the Agreement marks an important milestone in relations between Vietnam and EFTA, whose member states have strengths in innovation. It also demonstrates the parties’ determination to strengthen economic cooperation, promote free trade and reinforce the rules-based trading system amid continued volatility in the global economy.
Representatives of the EFTA member states officially signed the Vietnam–EFTA Free Trade Agreement (VEFTA).
Comprehensive Commitments Across Key Economic Sectors
The Vietnam–EFTA Free Trade Agreement covers a comprehensive range of commitments across several important areas, including trade in goods (tariffs, technical barriers to trade, sanitary and phytosanitary measures, customs and trade remedies), trade in services, investment, intellectual property, government procurement, competition, small and medium-sized enterprises, dispute settlement, trade and sustainable development.
With its broad scope of commitments and diverse areas of cooperation, the Agreement is expected to create new opportunities for Vietnam to diversify its import and export markets, enhance business competitiveness and participate more deeply in global value chains. It is also expected to attract high-quality investment capital, advanced technologies and management expertise from developed European economies.
Vietnam–EFTA Economic, Trade and Investment Relations Continue to Grow
Economic, trade and investment relations between Vietnam and EFTA member states have continued to develop positively, with bilateral trade averaging nearly USD 2 billion annually.
The structure of goods traded between the two sides is highly complementary, reflecting their respective strengths and needs. Vietnam exports seafood, footwear, textiles and garments, machinery, electronic equipment and components to EFTA markets. In return, Vietnam imports machinery, industrial equipment, chemicals, pharmaceuticals and materials for production from EFTA member states.
The Vietnam–EFTA Free Trade Agreement is expected to open up new opportunities for cooperation.
Expanding Investment Cooperation
Investment cooperation between the two sides has also continued to expand.
As of the end of 2025, Switzerland had 234 active investment projects in Vietnam, with total registered capital exceeding USD 2.4 billion. Norway had 62 projects, with total registered capital exceeding USD 201 million.
Many major EFTA corporations and investors are already present in Vietnam in sectors such as industry, food, pharmaceuticals, energy and technology.
EFTA businesses and investors are also interested in opportunities for cooperation and investment in Vietnam in areas including innovation, high technology, logistics and precision engineering.
Creating New Opportunities for Growth and Sustainable Development
The Vietnam–EFTA Free Trade Agreement is expected to open up new opportunities for cooperation between the two sides and create momentum for economic growth, innovation and sustainable development, thereby bringing tangible benefits to the people and business communities of Vietnam and EFTA member states.
Source: Government News
