Vietnam signs free trade deal with four European nations
The pact with Norway, Switzerland, Iceland and Liechtenstein cuts duties on industrial, fish and agricultural goods and deepens Vietnam's European ties.
Vietnam and the four member states of the European Free Trade Association (EFTA) — Iceland, Liechtenstein, Norway and Switzerland — signed a free trade agreement in Hanoi on Sunday, 18 October 2026. The deal was signed in the presence of Vietnam's top leader To Lam and representatives of EFTA governments.
The pact, formally named the Vietnam-EFTA Free Trade Agreement (VEFTA), eliminates or reduces customs duties on imports of industrial, fish and agricultural products. It comes as both sides seek to diversify their markets amid US tariffs disrupting global commerce, and it is expected to help Vietnam integrate more deeply into global value chains.
The agreement covers trade in goods and services, intellectual property rights, trade remedies and sustainable development, among other areas, according to both parties. Vietnam said the deal showed the parties' resolve to reinforce the rules-based trading system amid continued volatility in the global economy, and Hanoi added that it was expected to help Vietnam diversify its import and export markets.
Negotiations concluded in July 2026, more than a decade after free trade talks officially began in 2012. The parties relaunched negotiations in September 2025 after the talks had stalled since 2018, amid global tensions over US tariffs.
Bilateral trade between EFTA and Vietnam last year was valued at 4.8 billion euros (US$5.4 billion), according to the association. Electrical and mechanical machinery, fish and pharmaceutical products were the EFTA nations' top exports to Vietnam, while machinery, footwear and apparel were Vietnam's major exports to the EFTA bloc.
The Norwegian government said around half of Norway's exports to Vietnam will be tariff-free when the agreement enters into force, with more than 98% tariff-free within seven years. Vietnam's trade ministry said the country mainly exports seafood, footwear, textiles, machinery and equipment, electronics and components to the EFTA market, and imports industrial machinery and equipment, chemicals, pharmaceuticals, and raw materials for production.
Vietnam's trade ministry also said bilateral trade between Vietnam and EFTA member countries has averaged $2 billion annually. EFTA was created as a counterpart to the European Economic Community, the precursor of the EU, which its four member states are close to but have not joined.
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Sources and context
- Vietnam signs free trade deal with four European nationsCNA
- Vietnam signs free-trade pact with European countries including Norway, SwitzerlandThe Straits Times
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