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Vietnam signs free trade deal with Switzerland, Norway, Iceland, and Liechtenstein

Vietnam signs free trade deal with Switzerland, Norway, Iceland, and Liechtenstein

Rule Changes

Pact caps 14 years of negotiations and opens four European markets as US tariffs cloud Vietnam's biggest export destination

Today: Vietnam and EFTA sign the trade pact in Hanoi

Overview

Updated 1 hour ago

Vietnam signed a free trade agreement with Switzerland, Norway, Iceland, and Liechtenstein on October 18, closing 14 years of on-again, off-again negotiations. The pact removes or cuts tariffs on most industrial, agricultural, and fish products — Norwegian salmon goes duty-free the day it takes effect — and covers services, investment, intellectual property, and sustainable development.

Bilateral trade was worth EUR 4.8 billion in 2025, with Vietnam running a surplus of EUR 2.5 billion. The deal gives Vietnamese exporters of seafood, footwear, textiles, and electronics a stable route into four wealthy European markets at a moment when tariffs from the United States, Vietnam's largest customer, have upended global trade.

Why it matters

Vietnam's exporters gain a stable route into four wealthy European markets as US tariffs make their biggest market unpredictable.

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Key Indicators

EUR 4.8B
Bilateral EFTA-Vietnam trade, 2025
Total goods trade between Vietnam and the four EFTA states last year.
EUR 2.5B
Vietnam's trade surplus with EFTA, 2025
Up from EUR 0.5 billion a decade earlier; Swiss figures exclude gold.
98%
Norwegian exports to Vietnam tariff-free within seven years
About half will be duty-free on entry into force; salmon immediately.
14 years
Time from launch to signing of negotiations
Talks began July 2012, stalled in 2018, and were relaunched in September 2025.

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Timeline

July 2012 October 2026

6 events Latest: Today
Tap a bar to jump to that date
  1. Vietnam and EFTA sign the trade pact in Hanoi

    Today Signing

    Vietnam and the four EFTA states sign the free trade agreement in the presence of top leader To Lam.

  2. EFTA and Vietnam announce agreement conclusion

    Announcement

    The two sides announce a comprehensive free trade deal after more than a decade of talks.

  3. EFTA ministerial meeting concludes negotiations

    Negotiation

    EFTA ministers meet in Reykjavik, marking the conclusion of the negotiating process.

  4. Negotiations relaunched

    Negotiation

    Vietnam and EFTA restart talks, adding five more rounds of negotiation.

  5. Talks stall after 16 rounds

    Negotiation

    Negotiations slow to a crawl following the sixteenth round, leaving the deal unresolved.

  6. EFTA-Vietnam negotiations launch in Hanoi

    Negotiation

    Talks begin toward a comprehensive free trade agreement between Vietnam and the four EFTA states.

Scenarios

1

Vietnam-EFTA agreement enters into force

Likely Resolves by End of 2028

Discussed by: EFTA officials and Vietnam's Ministry of Industry and Trade

Ratification moves through Vietnam's National Assembly and the parliaments of all four EFTA states. The EU-Vietnam pact took about a year from signature to effect, and officials expect something similar here, putting entry into force in late 2027 or 2028.

2

Ratification stalls, delaying entry into force past 2028

Possible Resolves by End of 2029

Discussed by: Trade analysts noting Switzerland's historically slow ratification process

Switzerland, the largest EFTA economy, has taken longer than its partners to ratify past agreements. A delay in any one EFTA state pushes the start date back, keeping the deal's tariff cuts out of reach for exporters.

3

Vietnam-EFTA trade climbs past EUR 6 billion

Possible Resolves by End of 2031

Discussed by: VASEP and trade economists

With Norwegian salmon duty-free from day one and most tariffs gone within seven years, bilateral trade rises well above its 2025 level of EUR 4.8 billion. Seafood processing, importing Norwegian and Icelandic raw fish to process in Vietnam, is one projected growth channel.

Historical Context

2 moments from history that rhyme with this story — and how they unfolded.

June 2019 - August 2020

EU-Vietnam Free Trade Agreement (2019-2020)

The European Union and Vietnam signed their free trade agreement on June 30, 2019, after a decade of talks. It took effect on August 1, 2020, eliminating more than 99% of customs duties between the two sides over a 10-year schedule.

Then

Vietnam became the second Southeast Asian state after Singapore to hold an FTA with the EU, opening its largest single trading partner.

Now

The deal became the template for Vietnam's European trade strategy and showed its willingness to accept labor and environmental standards.

Why this matters now

The EFTA pact extends the same tariff-free access to the four EU-outsider European states, completing Vietnam's European trade network. Its ratification path mirrors the EU deal's roughly 13-month gap between signing and entry into force.

March 2018 - January 2019

CPTPP Comes Into Force for Vietnam (2019)

Vietnam was among 11 countries that signed the Comprehensive and Progressive Agreement for Trans-Pacific Partnership in March 2018, after the United States withdrew. The pact took effect for Vietnam on January 14, 2019.

Then

Vietnam gained preferential access to Australia, Japan, Canada, Mexico, and five other Pacific economies.

Now

The CPTPP helped cement Vietnam's model of signing onto rule-based trade agreements to anchor its export-driven growth.

Why this matters now

The EFTA deal follows the same playbook, diversifying export markets at a time when the United States, Vietnam's top customer, has upended tariff arrangements.

Sources

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