Vietnam’s Minister of Industry and Trade, Le Manh Hung, and representatives of the four member states of the European Free Trade Association (EFTA) signed the Vietnam-EFTA Free Trade Agreement (VEFTA) in Hanoi on the morning of October 18, in a ceremony witnessed by Party General Secretary and State President To Lam.
Minister of Industry and Trade Le Manh Hung and representatives of EFTA member states sign the Vietnam-EFTA Free Trade Agreement in Hanoi on October 18 (Photo: Ministry of Industry and Trade).
The EFTA representatives were Guy Parmelin, president of the Swiss Confederation and minister for economic affairs, education and research; Brigitte Haas, Liechtenstein’s prime minister and minister responsible for government affairs and finance; Þorgerður Katrín Gunnarsdóttir, Iceland’s foreign minister; and Astrid Bergmål, state secretary at Norway’s Ministry of Foreign Affairs.
The signing marks a milestone in relations between Vietnam and EFTA, whose members have strengths in innovation. It also reflects both sides’ commitment to closer economic cooperation, free trade and a rules-based trading system amid continued global economic uncertainty.
The agreement covers a broad range of areas, including trade in goods, tariffs, technical barriers to trade, sanitary and phytosanitary measures, customs procedures and trade remedies. It also addresses services, investment, intellectual property, government procurement, competition, small and medium-sized enterprises, dispute settlement, and trade and sustainable development.
The deal is expected to help Vietnam diversify its export and import markets, improve business competitiveness and deepen its participation in global value chains. It could also attract high-quality investment, advanced technology and management expertise from developed European economies.
Economic, trade and investment ties between Vietnam and EFTA members have continued to grow, with bilateral trade averaging nearly USD 2 billion a year.
Trade between the two sides is largely complementary. Vietnam exports seafood, footwear, textiles and garments, machinery, electronics and components to EFTA markets. In return, it imports machinery, industrial equipment, chemicals, pharmaceuticals and production materials.
Investment cooperation has also expanded. By the end of 2025, Switzerland had 234 active investment projects in Vietnam with registered capital exceeding USD 2.4 billion, while Norway had 62 projects worth more than USD 201 million.
Major EFTA companies and investors are already operating in Vietnam in industries including manufacturing, food, pharmaceuticals, energy and technology. EFTA businesses have also shown interest in investment and cooperation opportunities in innovation, high technology, logistics and precision engineering.
The agreement is expected to create new opportunities for cooperation and support economic growth, innovation and sustainable development, bringing tangible benefits to people and businesses in Vietnam and EFTA member states.
