Vietnam signs EFTA trade pact as tariff pressure disrupts commerce
Vietnam and the European Free Trade Association’s four members—Iceland, Liechtenstein, Norway and Switzerland—signed a free trade agreement in Hanoi on 18 October, cutting or reducing duties on a range of goods. Vietnam’s government says the pact will help diversify trade and deepen integration into global supply chains, as US tariffs on Vietnamese exports remain under negotiation with Washington.
Bottom line — EFTA says bilateral trade with Vietnam was worth €4.8 billion last year; Norway expects more than 98% of its exports to be tariff-free within seven years.
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The agreement covers goods and services, intellectual property, trade remedies and sustainable development, according to the parties.
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Talks began in 2012, stalled in 2018 and resumed in September 2025; negotiations concluded in July, AFP reports.
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EFTA’s main exports to Vietnam include machinery, fish and pharmaceuticals; Vietnam mainly exports machinery, footwear and apparel, according to AFP.
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Norway’s government says around half its exports to Vietnam will be tariff-free when the agreement takes effect, rising to more than 98% within seven years.
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Vietnam’s trade ministry says trade with EFTA members has averaged about €1.8 billion annually ($2 billion).