| Vietnam and EFTA member states sign free trade agreement. Photo: congthuong.vn |
The agreement was signed on October 18 in the presence of Party General Secretary and State President To Lam, with Minister of Industry and Trade Le Manh Hung and representatives of the European Free Trade Association (EFTA) member states formally signing the Vietnam-EFTA Free Trade Agreement (VEFTA).
The EFTA representatives included Guy Parmelin, President of Switzerland and Head of the Federal Department of Economic Affairs, Education and Research; Brigitte Haas, Prime Minister and Minister of Finance of Liechtenstein; Þorgerður Katrín Gunnarsdóttir, Minister for Foreign Affairs of Iceland; and Astrid Bergmål, State Secretary at Norway's Ministry of Foreign Affairs.
The signing marks an important milestone in relations between Vietnam and EFTA, whose member states are among the world’s leading innovators. 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 VEFTA covers a comprehensive range of commitments across key areas, including trade in goods (covering 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 agreement 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.
Economic, trade, and investment relations between Vietnam and EFTA member states have continued to develop positively, with bilateral trade averaging nearly $2 billion annually. The two sides have highly complementary trade structures, reflecting their respective strengths and needs. Vietnam mainly exports seafood, footwear, textiles and garments, machinery and equipment, electronics, and components to EFTA markets. In return, it imports machinery, industrial equipment, chemicals, pharmaceuticals, and raw materials for production.
Investment cooperation between the two sides has also expanded. By the end of 2025, Switzerland had 234 investment projects in Vietnam, with total registered capital exceeding $2.4 billion, while Norway had 62 projects with total registered capital of more than $201 million.
Several major EFTA corporations and investors have established a presence in Vietnam and are operating effectively in sectors including industry, food, pharmaceuticals, energy, and technology. EFTA businesses and investors are also planning to cooperate on and invest in major projects in Vietnam, particularly in innovation, high technology, logistics, and precision engineering.
The VEFTA 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 business communities in Vietnam and EFTA member states alike.
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