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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, with officials targeting early 2027 and Vietnam already pressing Iceland and Liechtenstein to ratify quickly

October 18th, 2026: Vietnam and EFTA sign the trade pact in Hanoi

Overview

Updated Oct 28

Vietnam and the four European Free Trade Association (EFTA) states signed a free trade agreement in Hanoi on October 18, ending 14 years of talks. The pact covers goods, services, investment, intellectual property and digital trade. Both sides aim for it to take effect in early 2027, and Vietnam's trade ministry says it will send the agreement for government approval and issue an implementation plan.

Trade figures vary by source. Swiss statistics put two-way trade with Vietnam at about $3.5 billion in 2025, while Vietnamese officials put total EFTA-Vietnam trade at nearly $2 billion a year. Norwegian salmon, taxed at up to 15% today, becomes duty-free when the deal takes effect. Ratification by all four EFTA parliaments is still pending.

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.
$3.5B
Vietnam-Switzerland goods trade, 2025
Swiss statistics; up nearly 26% on 2024 and about 806.2 million USD in the first nine months of 2026.
98%
Norwegian exports to Vietnam tariff-free within seven years
About half will be duty-free on entry into force; salmon immediately, mackerel over three years.
247
Swiss investment projects in Vietnam
About 2.5 billion USD in registered capital as of September 30, 2026, ranking Switzerland 20th among investors.
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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People Involved

Tô Lâm
Tô Lâm
General Secretary of the Communist Party of Vietnam and State President
Presided over the signing ceremony in Hanoi
 Lê Minh Hưng
Lê Minh Hưng
Prime Minister of Vietnam
Met Liechtenstein Prime Minister Brigitte Haas in Hanoi on October 18; both agreed to ratify the trade deal soon
 Guy Parmelin
Guy Parmelin
President of the Swiss Confederation and head of the Federal Department of Economic Affairs, Education, and Research
Attended the Hanoi signing and pledged to promote Swiss ratification of the agreement
 Lê Mạnh Hùng
Lê Mạnh Hùng
Minister of Industry and Trade of Vietnam
Signed the agreement for Vietnam, met Switzerland's president the same day, and pressed EFTA members to finish ratification for early 2027

Organizations Involved

European Free Trade Association (EFTA)
European Free Trade Association (EFTA)
Intergovernmental trade bloc
Signed the free trade agreement with Vietnam; all four member states must now ratify

The trade bloc of Iceland, Liechtenstein, Norway, and Switzerland.
Russian Ministry of Industry and Trade
Russian Ministry of Industry and Trade
Federal Ministry
Led negotiations and signed for Vietnam

Vietnam's commerce ministry, which led the decade-plus negotiation.
Vietnam Association of Seafood Exporters and Producers (VASEP)
Vietnam Association of Seafood Exporters and Producers (VASEP)
Trade association
Seafood exporter group analyzing the deal's opportunities

Represents Vietnam's seafood exporters and processors.
VM
Vietnam Ministry of Industry and Trade
Government ministry
Signed the agreement on October 18, said it would submit it for government approval, and asked Iceland for implementation support

Vietnam's trade ministry, which led the EFTA negotiations and signed the pact.

Timeline

July 2012 October 2026

10 events Latest: October 18th, 2026 · 3 weeks ago
Tap a bar to jump to that date

  1. Vietnam and EFTA sign the trade pact in Hanoi

    Latest Signing

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

  2. Vietnam and Switzerland discuss early implementation

    Diplomacy

    Trade Minister Le Manh Hung met Swiss President Guy Parmelin in Hanoi. Vietnam said it would submit the pact for government approval and urged EFTA members to ratify so it can take effect in early 2027.

  3. Vietnam and Liechtenstein agree to speed ratification

    Diplomacy

    Prime Minister Le Minh Hung and Liechtenstein Prime Minister Brigitte Haas agreed to ratify the trade deal soon and implement it once it takes effect.

  4. Vietnam and Liechtenstein sign double taxation agreement

    Signing

    The tax pact was signed during Prime Minister Brigitte Haas's visit, alongside the trade agreement. She and Prime Minister Le Minh Hung agreed to ratify the trade deal soon.

  5. Vietnam asks Iceland to speed ratification

    Diplomacy

    A Vietnamese deputy trade minister asked Iceland to finish its procedures so the pact can take effect in 2027 and to fund a technical assistance programme for businesses. The two sides also discussed geothermal energy and seafood processing.

  6. EFTA and Vietnam announce agreement conclusion

    Announcement

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

  7. EFTA ministerial meeting concludes negotiations

    Negotiation

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

  8. Negotiations relaunched

    Negotiation

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

  9. Talks stall after 16 rounds

    Negotiation

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

  10. 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.

4

Vietnam-EFTA trade agreement enters into force in early 2027

Likely Resolves by Q2 2027

Discussed by: Vietnam's Ministry of Industry and Trade and Swiss President Guy Parmelin

Vietnam's trade ministry said it would submit the agreement for government approval and urged EFTA members to finish their procedures. Swiss President Guy Parmelin pledged to promote ratification. Entry into force requires completion of procedures on both sides.

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

(15)
+9
Ministry of Industry and Trade (Vietnam) AFP EFTA Norwegian Government Voice of Vietnam VietnamPlus Reuters via StreetInsider Vietnam News Digital Watch Vietnam.vn Norwegian Government VietnamPlus VietnamPlus Ministry of Industry and Trade (Vietnam) Vietnam News