Vietnam signs a free trade agreement with Norway, Switzerland, Iceland and Liechtenstein to reduce tariffs, expand market access and diversify trade links amid global economic uncertainty.
Vietnam has signed a free trade agreement with four European countries - Norway, Switzerland, Iceland and Liechtenstein - under the European Free Trade Association (EFTA), marking a step towards expanding trade ties and diversifying international markets amid global tariff uncertainty. The agreement was signed in Hanoi , following the conclusion of negotiations in July.
The agreement aims to reduce or eliminate customs duties and improve market access for goods and services traded between Vietnam and the four EFTA members. It also covers investment, intellectual property rights, competition, trade remedies, government procurement and sustainable development.
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According to Norway’s government, around half of its exports to Vietnam will become tariff-free when the agreement enters into force. More than 98% of Norwegian exports are expected to qualify for tariff-free access within seven years, potentially creating opportunities for businesses in industrial goods and other sectors.
Vietnam exports seafood, footwear, textiles, machinery, equipment, electronics and components to EFTA markets. In return, it imports industrial machinery, chemicals, pharmaceuticals and raw materials used in manufacturing. The agreement is expected to support businesses seeking to expand cross-border trade and strengthen supply-chain links.
Negotiations began in 2012 but stalled in 2018 after 16 rounds of discussions. The two sides restarted negotiations in September 2025 amid growing uncertainty in global trade, and the talks concluded in July 2026 after five additional rounds.
Trade between Vietnam and EFTA member countries has grown over the past decade. The EFTA reported that bilateral trade reached €4.8 billion in 2025, while Vietnam’s trade ministry said annual bilateral trade averaged approximately $2 billion, reflecting differences in the reporting periods or measurements cited by the respective sources.
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The agreement is expected to help Vietnam diversify its export destinations and integrate more deeply into global value chains. For EFTA members, it offers expanded access to a growing Southeast Asian economy and opportunities to strengthen commercial relationships beyond traditional markets. Its implementation will depend on the agreement’s entry-into-force process.