Overview of the EFTA-Viet Nam Free Trade Agreement

The European Free Trade Association said on Thursday it has successfully concluded negotiations with Viet Nam on a free trade agreement, as its members seek to diversify commercial relations amid global tensions over tariffs.

Key Members and Scope of the Agreement

EFTA, whose members are Iceland, Liechtenstein, Norway and Switzerland, said the accord also covers areas ranging from rules of origin, investment, intellectual property rights and competition, to trade remedies and government procurement.

Switzerland's Position and Tariff Challenges

Switzerland, the largest economy in EFTA, was last August saddled with the highest U.S. tariffs in Europe after President Donald Trump rolled out a raft of import duties worldwide.

Negotiation Timeline and Process

Negotiations between EFTA on the free trade deal were launched in 2012 but after 16 rounds got stuck in 2018 due to lack of progress. In September 2025, the talks were relaunched, successfully concluding after five more rounds.

Growth in Bilateral Trade

EFTA noted that trade between the bloc and Viet Nam has grown steadily over the past decade. By 2025, bilateral trade between them was worth €4.8 billion ($5.5 billion).

The figures exclude Swiss trade in gold, and show a trade surplus in favour of Viet Nam worth €2.5 billion.

Related Developments

The news was announced as Swiss President Guy Parmelin visits North America on a trip in which he aims to make progress on updating Switzerland's free trade deal with Mexico.

Source: Globalbankingandfinance