Vietnam, EFTA sign free trade agreement after 14 years of negotiations

Vietnam and the European Free Trade Association (EFTA) inked a free trade agreement after 14 years of negotiations, bringing together leaders from several European nations renowned for their innovation. The signing, witnessed by top Vietnamese and EFTA officials, underscores a commitment to deepen economic ties and promote open trade in the face of global economic instability.

The comprehensive pact spans multiple sectors, including goods, services, investment, intellectual property, and sustainable development. It promises to stimulate Vietnam's export diversification, boost business competitiveness, and deepen its participation in global value chains. In turn, the agreement is poised to attract high-quality investment, cutting-edge technology, and management expertise from leading European economies.

Over the past years, economic, trade, and investment relations between Vietnam and EFTA members have flourished, with annual bilateral trade averaging near $2 billion. Notably, Switzerland and Norway have been significant contributors, with Switzerland having invested over $2.4 billion and Norway over $201 million in Vietnam as of late 2025.

Vietnamese exports to EFTA primarily comprise seafood, footwear, textiles, machinery, electronics, and components, while imports include machinery, industrial equipment, chemicals, pharmaceuticals, and production materials. EFTA firms, attracted by Vietnam's robust industries ranging from manufacturing to tech, have established significant operations in the country.

Looking ahead, the Vietnam-EFTA Free Trade Agreement is set to unlock fresh prospects for economic growth, technological advancement, and sustainable development, delivering tangible gains for businesses and citizens alike in Vietnam and across EFTA.