Free trade agreement between Vietnam and EFTA member countries signed

A free trade agreement between Vietnam and four member countries of the European Free Trade Association (EFTA) was signed in Hanoi on October 18.

The signing  ceremony was witnessed by General Secretary of the Communist Party of Vietnam Central Committee and President To Lam.

Also present at the ceremony were Swiss President and head of Swiss Department of Economic Affairs, Education and Research Guy Parmelin; Liechtenstein Prime Minister and Minister of Government Affairs and Finance Brigitte Haas; Iceland's Minister for Foreign Affairs Þorgerður Katrín Gunnarsdóttir; and Norwegian State Secretary at the Ministry of Foreign Affairs Astrid Bergmål.

The EFTA, which was established in 1960, comprises Iceland, Liechtenstein, Norway and Switzerland.

The new trade deal resulted from 14-year long negotiations between the two sides.

The signing of the new trade deal marks an important milestone in the relations between Vietnam and the four European countries, reflecting their determination in enhancing economic cooperation and promoting free trade amid global economic fluctuations.

The trade deal covers a wide range of important areas such as trade in goods, trade in services, investment, intellectual property, government procurement, competition, small and medium-sized enterprises, dispute settlement, and sustainable development among others.

The agreement is expected to open up new opportunities for Vietnam to diversify export markets, attract high-quality investment, advanced technology, and modern governance expertise from top European economies.

Economic, trade and investment ties between Vietnam and EFTA member states have continued to grow positively, with bilateral trade averaging nearly $2 billion annually. The two sides have highly complementary trade structures, reflecting their respective strengths and needs.

Vietnam’s main exports to EFTA markets include seafood, footwear, textiles and garments, machinery and equipment, electronics and components. Imports from EFTA mainly comprise machinery, industrial equipment, chemicals, pharmaceuticals and production materials.