Vietnam and EFTA Sign Comprehensive Free Trade Agreement

The Government of Vietnam and the European Free Trade Association (EFTA)—comprising Iceland, Liechtenstein, Norway, and Switzerland—signed a comprehensive free trade agreement in Hanoi on October 18, 2026. The deal concludes 14 years of negotiations that began in 2012, stalled in 2018, and resumed in September 2025 before finishing in July 2026.

The agreement eliminates or reduces customs duties on industrial goods, seafood, and agricultural products. EFTA nations will immediately remove import tariffs on Vietnamese industrial and seafood products, while Vietnam will phase out its tariffs over an 11-year transition period. The pact also addresses intellectual property rights, trade remedies, investment, and sustainable development, specifically targeting growth in renewable energy, the maritime industry, and the circular economy.

Signatories pursued the deal to diversify markets and reinforce a rules-based trading system in response to global economic volatility and trade disruptions caused by U.S. tariffs under Donald Trump. The agreement complements a Green Strategic Partnership between Norway and Vietnam to support Vietnam's goal of net-zero emissions by 2050. Bilateral trade between the parties was valued at approximately 4.8 billion euros last year.