Vietnam has signed a free-trade agreement with Norway, Switzerland, Iceland and Liechtenstein to strengthen economic ties. The deal was signed in Hanoi with members of the European Free Trade Association (EFTA). It aims to expand trade between the Southeast Asian country and the four European nations. Negotiations, which had stalled for years, resumed last year amid global tensions over US tariffs.
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The agreement will gradually reduce tariffs on Norwegian exports to Vietnam. Around 50% of Norway’s exports will become tariff-free once the deal takes effect. The Norwegian government expects more than 98% of its exports to enter Vietnam without tariffs within seven years. Negotiations concluded in July, paving the way for the agreement.
Vietnam mainly exports seafood, footwear, textiles, machinery, electronics and components to EFTA markets. In return, it imports industrial machinery, chemicals, pharmaceuticals and raw materials. These products support its manufacturing and industrial sectors. The agreement could help businesses in both regions expand market access and strengthen supply chains.
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Bilateral trade between Vietnam and EFTA member countries averages around $2 billion annually, according to Vietnam’s trade ministry. The agreement seeks to build on these existing commercial ties. It also comes as countries pursue new trading partnerships amid uncertainty over global tariffs. However, the deal’s full impact will depend on its implementation and the growth of trade between the two sides.