Vietnam and the Member States of the European Free Trade Association Officially Conclude Free Trade Agreement Negotiations

Vietnam and the member states of the European Free Trade Association have officially concluded negotiations on the Vietnam–EFTA Free Trade Agreement, opening a new phase of cooperation, laying a solid foundation for stronger trade and investment, and expanding collaboration in areas of mutual interest.

The European Free Trade Association comprises four countries: Switzerland, Norway, Iceland and Liechtenstein. The two sides conducted 21 formal negotiating rounds. The most recent round took place in Iceland from 17 to 22 June.

On 22 June, Deputy Minister of Industry and Trade Nguyễn Sinh Nhật Tân led the Vietnamese negotiating delegation to the EFTA Ministerial Meeting in Liechtenstein to discuss the final outstanding issues and conclude the negotiations.

According to the Multilateral Trade Policy Department under the Ministry of Industry and Trade, the two sides issued a joint statement on 2 July announcing the conclusion of negotiations on the Vietnam–EFTA Free Trade Agreement.

The agreement is expected to open a new phase of cooperation, create a solid foundation for promoting trade and investment, and expand collaboration across a broad range of areas between Vietnam and the EFTA countries.

The announcement followed the EFTA Ministerial Meeting held in Reykjavík, Iceland, on 22 June, marking the official completion of the negotiating process. Prior to the meeting, the EFTA and Vietnamese negotiating teams had conducted several days of technical negotiations in Reykjavík in preparation for the ministerial discussions.

The ministerial meeting in Iceland was attended by 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 of the Swiss Confederation and Head of the Federal Department of Economic Affairs, Education and Research; and Nguyễn Sinh Nhật Tân, Deputy Minister of Industry and Trade of Vietnam.

Vietnam and EFTA Successfully Conclude Free Trade Agreement Negotiations
Negotiations on the Vietnam–EFTA Free Trade Agreement resumed on 8 September 2025 in Geneva and proceeded through five negotiating rounds.

The agreement is comprehensive and modern, covering a wide range of 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, cooperation and capacity building.

The agreement aims to strengthen trade relations between Vietnam and the EFTA countries by eliminating or reducing tariffs, facilitating trade and promoting sustainable development.

Speaking at the EFTA Ministerial Meeting, Espen Barth Eide emphasized:
“Against a backdrop of global uncertainty, strengthening relations with reliable trading partners has become even more important. 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 strengthening cooperation in areas such as sustainable development and intellectual property rights. I am confident that this agreement will create many new trade opportunities for businesses in the EFTA countries and Vietnam.”

Deputy Minister Nguyễn Sinh Nhật Tân highlighted the agreement’s particular significance:
“The agreement is especially meaningful because it connects economies with complementary strengths. On one side are the EFTA countries, which possess world-leading capabilities in innovation, technology, finance, clean energy and sustainable development. On the other is Vietnam, one of Asia’s most dynamic economies and an emerging regional centre for manufacturing, trade and investment.

More importantly, the agreement provides a foundation for economic relations between Vietnam and the EFTA countries to enter a new stage of development. With comprehensive and high-standard commitments, it will create a stable, transparent and predictable business environment, thereby further promoting flows of trade, investment, technology and knowledge between the two sides.”

Over the past decade, trade between EFTA and Vietnam has grown steadily.
In 2025, bilateral trade reached EUR 4.8 billion, while Vietnam’s trade surplus amounted to EUR 2.5 billion, a substantial increase from EUR 0.5 billion ten years earlier, excluding Swiss gold trade statistics.

EFTA’s main exports to Vietnam include electrical machinery, seafood, pharmaceuticals and mechanical machinery, while Vietnam primarily exports electrical machinery, footwear, garments and mechanical machinery.

All of these product groups recorded average annual growth rates of more than 10% over the past decade.

The conclusion of negotiations opens a new phase of cooperation, creates a strong foundation for promoting trade and investment between the two sides, and expands collaboration in areas of mutual interest.