Vietnam and the member states of the European Free Trade Association (EFTA) have officially concluded negotiations on a bilateral free trade agreement (FTA), paving the way for stronger trade, investment and broader economic cooperation between the two sides.
EFTA comprises four countries—Switzerland, Norway, Iceland and Liechtenstein. The negotiations concluded after 21 formal rounds, with the latest held in Iceland from June 17 to 22, 2026.
According to the Ministry of Industry and Trade's Multilateral Trade Policy Department, the two sides issued a joint declaration on July 2, 2026, announcing the successful conclusion of the negotiations.
Trade between Vietnam and the EFTA bloc has expanded steadily over the past decade. Bilateral trade reached EUR4.8 billion ($5.5 billion) in 2025, with Vietnam posting a trade surplus of EUR2.5 billion, up significantly from EUR500 million 10 years earlier, excluding Switzerland's gold trade.
EFTA's main exports to Vietnam include electrical machinery, seafood, pharmaceuticals and mechanical equipment, while Vietnam primarily exports electrical machinery, footwear, garments and mechanical products. These major product groups have recorded average annual growth of more than 10% over the past decade.
The Ministry of Industry and Trade said the agreement is expected to provide a solid foundation for expanding bilateral trade and investment while deepening cooperation across multiple sectors.
Norwegian seafood producers are expected to be among the key beneficiaries. According to the Norwegian Seafood Council, the FTA will improve the competitiveness of Norwegian seafood in Vietnam. Once the agreement takes effect, Norwegian salmon will enjoy immediate duty-free access to the Vietnamese market, while tariffs on Norwegian mackerel will be phased out over a three-year transition period.
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