At a workshop hosted by the Vietnam Chamber of Commerce and Industry (VCCI) on November 11, experts discussed strategies for Vietnamese businesses to utilize the Vietnam-EFTA Free Trade Agreement (VEFTA), which has established a framework for bilateral trade cooperation, since it was signed in Hanoi on October 18, 2026.
The European Free Trade Association (EFTA) consists of Switzerland, Norway, Iceland, and Liechtenstein.
Mr. Dau Anh Tuan, Vice General Secretary of VCCI, stated that market diversification serves as a core strategy to mitigate risks for Vietnam’s open economy. Although EFTA member states maintain independent customs regimes, they feature high per capita incomes and strong purchasing power. Bilateral trade shows structural complementarity, with EFTA exporting high-tech machinery, pharmaceuticals, and precision equipment, while Vietnam exports textiles, footwear, seafood, and consumer electronics.
Customs data indicates two-way trade reached $1.92 billion in 2025, up 29 percent year-on-year. Vietnam imported $1.52 billion in high-tech products and exported $405 million in manufactured goods and agricultural products.
Ms. Nguyen Son Tra from the Ministry of Industry and Trade noted that the $405 million export figure leaves substantial headroom for growth. Adhering to standards in Switzerland or Norway provides Vietnamese exporters with established credibility across global markets.
VEFTA commitments feature high rates of market opening. Ms. Nguyen Phuong Linh from the Ministry of Finance highlighted that VEFTA achieves a degree of trade liberalization comparable to CPTPP and EVFTA.
EFTA members committed to eliminating tariffs on over 90 percent of tax lines immediately upon entry into force, covering 99.5 percent of import value from Vietnam. Industrial goods and seafood receive immediate zero-percent tariffs, alongside preferential rates for key agricultural items including coffee, rice, and fruits.
In return, Vietnam will eliminate tariffs on 86.7 percent of import tax lines from EFTA over a maximum 15-year roadmap, covering nearly 100 percent of import turnover, alongside export tax reductions on 69 strategic mineral and resource lines.
However, tariff reductions do not guarantee immediate market entry. Lessons from EVFTA indicate that roughly one-third of Vietnamese enterprises fail to utilize tariff preferences due to non-compliance with rules of origin or lack of procedural information.
Under VEFTA, technical barriers to trade (TBT), sanitary and phytosanitary (SPS) measures, and sustainability mandates present main operational challenges. Northern European consumers require environmental protection, social responsibility, and transparent traceability.
Furthermore, EFTA is not a single customs union; Switzerland and Liechtenstein share a tariff schedule, while Norway and Iceland maintain distinct import regulations.
VEFTA is expected to take effect 60 days following completion of internal ratification procedures by all parties.
Mr. Dau Anh Tuan recommended that enterprises utilize the interim period to audit supply chains, review self-certification rules of origin, and upgrade production standards. Concurrently, the Ministry of Finance is drafting a Decree on Special Preferential Import-Export Tariffs to ensure immediate legal implementation upon entry into force.
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