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

PSNews - The Vietnam-EFTA Free Trade Agreement is expected to open up new avenues for cooperation and provide fresh impetus for economic growth, innovation and sustainable development, delivering tangible benefits to people and businesses in Vietnam and EFTA member states.

Vietnam's Minister of Industry and Trade Le Manh Hung and representatives of the member states of the European Free Trade Association (EFTA) officially signed the Vietnam-EFTA Free Trade Agreement (VEFTA) in Hanoi on October 18.

The EFTA representatives were Swiss President and head of Swiss Department of Economic Affairs, Education and Research Guy Parmelin; Liechtenstein Prime Minister and Minister of Government Affairs and Finance Brigitte Haas; Iceland's Minister for Foreign Affairs Þorgerður Katrín Gunnarsdóttir; and Norwegian State Secretary at the Ministry of Foreign Affairs Astrid Bergmål.

1-2618.jpg
The signing was witnessed by General Secretary of the Communist Party of Vietnam Central Committee and President To Lam.

The signing marks an important milestone in relations between Vietnam and EFTA, which comprise some of the world’s leaders in innovation.

It also reflects both sides’ determination to strengthen economic cooperation, promote free trade and reinforce the rules-based trading system amid continued global economic uncertainty.

The comprehensive agreement covers a wide range of key areas, including trade in goods, encompassing 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; and trade and sustainable development.

With its broad scope and diverse areas of cooperation, the deal is expected to create new opportunities for Vietnam to diversify its export and import markets, enhance business competitiveness and participate more deeply in global value chains. It is also expected to attract high-quality investment, advanced technologies and management expertise from leading European economies.

General Secretary of the Communist Party of Vietnam Central Committee and President To Lam (middle) and delegates at the signing ceremony.

General Secretary of the Communist Party of Vietnam Central Committee and President To Lam (middle) and delegates at the signing ceremony.

Economic, trade and investment ties between Vietnam and EFTA member states have continued to grow positively, with bilateral trade averaging nearly 2 billion USD annually. The two sides have highly complementary trade structures, reflecting their respective strengths and needs.

Vietnam’s main exports to EFTA markets include seafood, footwear, textiles and garments, machinery and equipment, electronics and components. Imports from EFTA mainly comprise machinery, industrial equipment, chemicals, pharmaceuticals and production materials.

Investment cooperation has also expanded. As of the end of 2025, Switzerland had 234 investment projects in Vietnam with total registered capital exceeding 2.4 billion USD, while Norway had 62 projects worth more than 201 million USD.

Many major EFTA corporations and investors have established a presence in Vietnam and operated successfully in industries such as manufacturing, food, pharmaceuticals, energy and technology. EFTA businesses and investors are also planning major projects in Vietnam in areas including innovation, high technology, logistics and precision engineering.

The Vietnam-EFTA Free Trade Agreement is expected to open up new avenues for cooperation and provide fresh impetus for economic growth, innovation and sustainable development, delivering tangible benefits to people and businesses in Vietnam and EFTA member states.

en.vietnamplus.vn

Other News

Spouses of Vietnamese, Swiss leaders visit Hanoi University of Pharmacy

Spouses of Vietnamese, Swiss leaders visit Hanoi University of Pharmacy

Hanoi University of Pharmacy holds special significance in bilateral relations as it is closely associated with Alexandre Yersin, a French scientist of Swiss origin born in 1863 in the canton of Vaud, the homeland of President Parmelin. Yersin was the first principal of the Indochina Medical College, the predecessor of today’s Hanoi University of Pharmacy and Hanoi Medical University. He also made important contributions to the development of medicine in Vietnam.

Top Vietnamese leader hosts banquet in honour of Swiss President

Top Vietnamese leader hosts banquet in honour of Swiss President

The General Secretary and President noted that since the establishment of diplomatic relations in 1971, Vietnam and Switzerland have consistently nurtured their friendship, strengthened political trust and expanded cooperation across various fields for the benefit of their people.

Fourteen of 15 key targets for 2026 to be met or exceeded: PM

Fourteen of 15 key targets for 2026 to be met or exceeded: PM

Amid a complex international and regional environment, proactive engagement across the entire political system has yielded major and relatively comprehensive socio-economic achievements, with 14 out of the 15 primary socio-economic targets expected to be met or exceeded.

Swiss President Guy Parmelin arrives in Hanoi, beginning official visit to Vietnam

Swiss President Guy Parmelin arrives in Hanoi, beginning official visit to Vietnam

Over 55 years of trust-building and cooperation, Vietnam and Switzerland have maintained friendly relations while gradually expanding collaboration across a wide range of areas. The elevation of bilateral ties to a Comprehensive Partnership in January 2025 reflected the two sides’ determination to usher their relations into a new phase of development.

Top leader's upcoming trip to lift ties with Denmark, EU, Belgium: Deputy FM

Top leader's upcoming trip to lift ties with Denmark, EU, Belgium: Deputy FM

Party General Secretary and President To Lam’s state visit to Denmark and official visits to the European Union (EU) and Belgium is expected to open new opportunities to strengthen the development capacity and strategic autonomy of Vietnam and its partners, delivering tangible benefits to citizens and businesses and contributing to peace, cooperation and sustainable development in both regions and globally.

Vietnam-EU ties set for new heights with concrete, practical outcomes: Ambassador

Vietnam-EU ties set for new heights with concrete, practical outcomes: Ambassador

The upcoming official visit to the European Union (EU) by General Secretary of the Communist Party of Vietnam (CPV) Central Committee and President To Lam is expected to provide a chance for the two sides to bring bilateral ties to a new height, EU Ambassador to Vietnam Julien Guerrier told the Vietnam News Agency ahead of the visit.

Right policies must translate into tangible development capacity: Top leader

Right policies must translate into tangible development capacity: Top leader

The Party Central Committee’s decisions require changes in thinking and coordinated reforms in Party building, leadership methods and personnel work. Right policies must translate into tangible development capacity, demonstrated through the operational effectiveness of the political system, the economy’s competitiveness and improvements in people’s lives.

Vietnam's top legislator welcomes Standing Member of LPRP Secretariat

Vietnam's top legislator welcomes Standing Member of LPRP Secretariat

NA President Tran Thanh Man proposed maintaining regular exchanges between the two legislative bodies, as well as among their committees, specialised agencies, and parliamentarians, particularly regarding issues emerging during the implementation of each Party’s congress resolutions.

Viet Nam’s top legislator welcomes Standing Member of LPRP Secretariat

Viet Nam’s top legislator welcomes Standing Member of LPRP Secretariat

NA President Tran Thanh Man proposed maintaining regular exchanges between the two legislative bodies, as well as among their committees, specialized agencies, and parliamentarians, particularly regarding issues emerging during the implementation of each Party’s congress resolutions.