Vietnam signs free-trade agreement with four EFTA countries

Vietnam signed a free-trade agreement with Norway, Switzerland, Iceland and Liechtenstein in Hanoi on 18 October 2026, completing negotiations that began in 2012. The four European Free Trade Association members and Vietnam agreed on a framework covering goods, services and other areas of economic cooperation, according to EFTA.¹²³

Tariff reductions and wider coverage

The agreement provides for the removal or reduction of customs duties on industrial goods, fish and agricultural products, CNA reported. EFTA says its scope also includes rules of origin, investment and intellectual property, alongside measures intended to make trade easier and encourage sustainable development.¹³

For Norwegian exporters, around half of shipments to Vietnam will become tariff-free when the agreement takes effect, according to Dunya News. The outlet reported that the proportion would exceed 98% within seven years. Those projections describe the implementation period rather than tariff changes taking effect at the signing.²

Vietnam's top leader, To Lam, attended the signing with representatives of EFTA governments, CNA reported. The four countries maintain close relations with the European Union but are not members, according to the outlet. The agreement is therefore with EFTA states rather than the EU.¹

Negotiations resumed after a pause

EFTA dates the launch of negotiations to July 2012 and says 16 rounds were held through 2018. Talks resumed in September 2025, with five further rounds, before concluding in July 2026. The signing ends a negotiating process extending over more than a decade.¹³

CNA placed the agreement against the backdrop of US tariffs imposed under President Donald Trump that affected Vietnam's exports to the United States. Vietnam's government said the pact demonstrated its commitment to a rules-based trading system during economic instability and would broaden its trading markets and strengthen participation in global value chains.¹

Machinery and consumer goods underpin trade

EFTA valued bilateral goods trade at €4.8 billion in 2025 and put Vietnam's surplus at €2.5 billion, compared with €0.5 billion a decade earlier. That year, EFTA members' top exports to Vietnam were electrical and mechanical machinery, fish and pharmaceutical products.¹³

EFTA said its principal purchases from Vietnam in 2025 comprised electrical equipment, shoes, clothing and machinery. According to its figures, each listed category recorded average annual growth above 10% over the preceding ten years. CNA also reported expert assessments that closer EFTA ties could help Vietnam pursue activities generating greater added value.¹³