The European Free Trade Association (EFTA) and Vietnam have concluded negotiations on a free trade agreement, Reuters reports. The decision is the ending of more than a decade of talks and paves the way for closer trade between Vietnam and the four EFTA states: Iceland, Liechtenstein, Norway and Switzerland.
The breakthrough was announced on 2 July after ministers from the four EFTA countries and Vietnam met in Reykjavík, Iceland.
Negotiations were first launched in 2012 but stalled in 2018 after 16 rounds of talks. They resumed in September 2025 and were completed after five further negotiating rounds.
Once signed and ratified, the agreement will reduce trade barriers and improve market access for businesses on both sides. It also covers services, investment, intellectual property rights, government procurement and sustainable development.
In a statement, EFTA said the agreement comes at a time of growing global economic uncertainty and will provide businesses with more predictable conditions for trade and investment.
Vietnam’s Deputy Minister of Industry and Trade, Nguyen Sinh Nhat Tan, said the agreement would strengthen economic cooperation by increasing the flow of trade, investment, technology and knowledge between Vietnam and the EFTA states.
Trade between EFTA and Vietnam has grown steadily over the past decade. In 2025, bilateral trade reached €4.8 billion, with Vietnam exporting electrical machinery, footwear and clothing to the EFTA countries, while EFTA’s main exports included electrical machinery, fish, pharmaceuticals and industrial machinery.
The agreement will now move to the signing and ratification process before it can enter into force.
