Việtnam, EFTA Sign Free Trade Agreement After 14 Years of Negotiations

Hanoi, The Gulf Observer: Việtnam and the European Free Trade Association (EFTA) officially signed a free trade agreement (FTA) in Hànội on Sunday, marking a significant milestone in economic relations between the two sides after 14 years of negotiations.

The signing ceremony was witnessed by Tô Lâm, General Secretary of the Communist Party of Việt Nam Central Committee and President of Việt Nam, alongside Minister of Industry and Trade Lê Mạnh Hùng and representatives of EFTA member states.

The EFTA delegation included Swiss President and Head of the Federal Department of Economic Affairs Guy Parmelin, Liechtenstein Prime Minister and Finance Minister Brigitte Haas, Icelandic Foreign Minister Þorgerður Katrín Gunnarsdóttir, and Norwegian State Secretary at the Ministry of Foreign Affairs Astrid Bergmål.

The agreement reflects the commitment of both sides to strengthening economic cooperation, promoting free trade and supporting a rules-based international trading system amid ongoing global economic uncertainties. EFTA member states are recognised for their advanced economies and strong capabilities in innovation and technology.

The comprehensive agreement covers trade in goods, tariffs, technical barriers to trade, sanitary and phytosanitary measures, customs procedures, trade remedies, services, investment, intellectual property rights, government procurement, competition, small and medium-sized enterprises, dispute settlement, and trade and sustainable development.

The pact is expected to help Việt Nam diversify its export and import markets, improve the competitiveness of domestic businesses and strengthen their participation in global value chains. It is also expected to facilitate the attraction of high-quality investment, advanced technologies and management expertise from leading European economies.

EFTA is an intergovernmental organisation established to promote free trade and economic integration. Its four member states are Norway, Switzerland, Iceland and Liechtenstein.

Việt Nam and EFTA conducted 21 formal rounds of negotiations, with the latest held in Iceland from June 17 to 22. On June 22, a Vietnamese delegation led by Deputy Minister of Industry and Trade Nguyễn Sinh Nhật Tân attended the EFTA Ministerial Meeting in Iceland to address outstanding issues required to conclude the negotiations.

On July 2, Việtnam and EFTA member states issued a joint statement announcing the conclusion of negotiations on the free trade agreement, paving the way for its formal signing.

Economic, trade and investment relations between Việtnam and EFTA countries have continued to develop, with bilateral trade averaging nearly US$2 billion annually. The two sides have complementary trade structures, creating opportunities for expanded commercial exchanges.

Việt Nam primarily 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 production materials from the four member states.

Investment ties have also expanded. By the end of 2025, Switzerland had 234 investment projects in Việtnam, with total registered capital exceeding US$2.4 billion. Norway had 62 projects valued at more than US$201 million.

Major EFTA corporations and investors have established operations in Việt Nam across several sectors, including manufacturing, food, pharmaceuticals, energy and technology. Businesses and investors from EFTA countries are also planning major projects in Việtnam in areas such as innovation, high technology, logistics and precision engineering.

The signing of the agreement is expected to provide a framework for further strengthening trade and investment ties, broadening market access and creating new opportunities for businesses in Việtnam and EFTA member states.