On the morning of 18 October 2026 in Hanoi, witnessed by Party General Secretary and State President To Lam, Minister of Industry and Trade Le Manh Hung and representatives of the four European Free Trade Association (EFTA) states, Switzerland, Norway, Iceland and Liechtenstein, signed the Vietnam–EFTA Free Trade Agreement (VEFTA). Talks began in May 2012, stalled in 2018, resumed in September 2025 and concluded on 2 July 2026. It is regarded as Vietnam's 18th FTA.
Main content
- Comprehensive scope: goods, services, investment, intellectual property, government procurement, competition and sustainable development.
- EFTA side: on entry into force, qualifying Vietnamese industrial goods, fish and marine products will be duty-free.
- Vietnam side: phases out duties on most EFTA industrial and seafood products within at most 11 years. For example, about half of Norway's exports to Vietnam become duty-free immediately, rising to over 98% after seven years.
- Current trade: goods trade was about €4.8 billion in 2025, with a Vietnamese surplus of about €2.5 billion (according to EFTA, excluding Swiss gold).
Which sectors benefit?
Vietnam's main exports to EFTA are electrical machinery, footwear, apparel, mechanical machinery, electronics and components, and seafood. With some of the highest incomes in the world, Switzerland and Norway are demanding but high-value markets that push Vietnamese firms to raise quality and branding. In return, machinery, pharmaceuticals and Norwegian salmon will become cheaper, benefiting consumers and domestic processors.
Part of a market diversification strategy
Amid volatile global tariffs, VEFTA helps Vietnam reduce reliance on a few big markets. It complements the EVFTA (27 EU states) and UKVFTA (the UK), completing the European picture. The GoGlobal programme for firms expanding abroad and the goal of attracting high-quality FDI with technology transfer will be supported by capital from Swiss and Norwegian groups strong in pharmaceuticals, energy, maritime and finance.
Impact on Vietnam's economy
- Exports: extra tariff advantages for seafood, apparel and footwear in high-income markets.
- Investment: opens the way for capital and technology in renewable energy, carbon markets, maritime and pharmaceuticals.
- Institutions: commitments on intellectual property, government procurement and sustainability encourage a more transparent business environment.
The road ahead
Signing does not activate tariff preferences immediately; the agreement must be ratified by all parties. The Ministry of Industry and Trade is aiming for entry into force in early 2027. Firms should prepare now by reviewing tariff schedules, rules of origin and product standards so they can benefit from day one.
vietnamii.com view: VEFTA is an important step in Vietnam's integration, bringing it closer to Europe's wealthiest markets. Experience shows that firms that prepare early on origin and standards benefit most.