Negotiations on free trade deal between Vietnam and European Free Trade Association concluded

Vietnam and the European Free Trade Association (EFTA) have concluded negotiations on a free trade agreement (FTA), the Government News quoted  the Vietnamese Ministry of Industry and Trade as reporting on July 3.

The trade deal is expected to open a new chapter in bilateral cooperation, creating a solid framework for promoting trade and investment, and expanding collaboration across sectors.

Vietnam and EFTA, comprising Iceland, Liechtenstein, Norway and Switzerland, issued a joint communiqué announcing the conclusion of the talks on July 2.

The communiqué followed the EFTA Ministerial Meeting held in Reykjavík, Iceland, on June 22. Negotiation teams from both Vietnam and EFTA had held intensive technical talks in Reykjavík in the week leading up to the Ministerial-level discussions.

The FTA is a comprehensive and modern agreement that comprises numerous areas, including trade in goods, trade in services, rules of origin, sanitary and phytosanitary measures, technical barriers to trade, investment, intellectual property rights, trade remedies, government procurement, trade and sustainable development, small and medium-sized enterprises, and cooperation and capacity building.

The agreement aims to enhance trade relations between Vietnam and the EFTA states by eliminating or reducing customs duties, facilitating trade, and promoting sustainable development.

Over the past decade, trade between Vietnam and the EFTA states has grown steadily to EUR4.8 billion ($5.5 billion) in 2025.

Electrical machinery, fish, pharmaceutical products and mechanical machinery were the EFTA states' top exports to Vietnam in 2025, while electrical machinery, footwear and apparel, and mechanical machinery were the top imports. These import categories recorded particularly strong growth over the last ten years, with annual average growth rates exceeding 10 percent in all cases.

The conclusion of the negotiations will mark the beginning of a new phase of cooperation, laying a solid foundation for the promotion of trade and investment between the two sides, while also expanding collaboration in areas of mutual interest.