Vietnamese 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 in Hanoi on October 18. The ceremony was witnessed by General Secretary of the Communist Party of Vietnam Central Committee and President To Lam.
The EFTA representatives were Swiss President and head of the 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.
The signing marked an important stage in relations between Vietnam and EFTA, whose members include countries that lead in innovation. The agreement reflects the sides' determination to strengthen economic cooperation, promote free trade, and reinforce the rules-based trading system amid continued global economic uncertainty.
What the agreement covers
The agreement covers trade in goods, including tariffs, technical barriers to trade, sanitary and phytosanitary measures, customs and trade remedies. It also covers trade in services, investment, intellectual property, government procurement, competition, small and medium-sized enterprises, dispute settlement, and trade and sustainable development.
The agreement is expected to help Vietnam diversify its export and import markets, improve business competitiveness, and participate more deeply in global value chains. It is also expected to attract investment, advanced technologies, and management expertise from European economies.
Trade and investment
Economic, trade, and investment ties between Vietnam and EFTA member states continue to grow. Bilateral trade averages nearly 2 billion USD annually. The two sides have complementary trade structures that reflect their strengths and needs.
Vietnam's main exports to EFTA markets are seafood, footwear, textiles and garments, machinery and equipment, electronics, and components. Imports from EFTA mainly include machinery, industrial equipment, chemicals, pharmaceuticals, and production materials.
Investment cooperation has also expanded. At 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 operations in Vietnam in manufacturing, food, pharmaceuticals, energy, and technology. EFTA businesses and investors are also planning major projects in Vietnam in innovation, high technology, logistics, and precision engineering.
The free trade agreement is expected to open new avenues for cooperation and provide impetus for economic growth, innovation, and sustainable development in Vietnam and EFTA member states.
Sources: VietnamPlus / Vietnam News Agency
