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Vietnam Signs Major Free-Trade Pact with European EFTA Nations
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CNBC TV18•18-10-2026, 15:30
Vietnam Signs Major Free-Trade Pact with European EFTA Nations
- •Vietnam and the four member states of the European Free Trade Association including Norway, Switzerland, Iceland, and Liechtenstein signed a free-trade agreement in Hanoi.
- •Negotiations for the deal were relaunched in 2025 following years of stalls, driven by global trade tensions and US tariff policies, and were completed in July.
- •Norway announced that half of its exports to Vietnam will be tariff-free immediately upon implementation, with over 98% gaining tariff-free access within seven years.
- •Vietnam primarily exports seafood, footwear, textiles, and electronics to EFTA countries while importing industrial machinery, chemicals, and pharmaceuticals.
- •Bilateral trade between Vietnam and the four EFTA member states has averaged approximately 2 billion dollars annually.
Key Questions Answered
The EFTA member states that signed the free-trade agreement with Vietnam comprise Norway, Switzerland, Iceland, and Liechtenstein.
Vietnam primarily exports seafood, footwear, textiles, machinery and equipment, and electronics and components to the EFTA countries.
More than 98% of Norwegian exports are expected to enjoy tariff-free access to Vietnam within seven years of the agreement entering into force.
