On 02 July 2026, Viet Nam and the European Free Trade Association (EFTA), comprising four Member States - Switzerland, Norway, Iceland and Liechtenstein officially announced the conclusion of negotiations on the Viet Nam – EFTA Free Trade Agreement. Launched in July 2012, this is one of the longest-negotiated free trade agreements in Viet Nam’s history.

The Free Trade Agreement between EFTA and Viet Nam (EFTA–Viet Nam FTA) is a comprehensive and high-standard free trade agreement, covering a wide range of areas such as trade in goods and services, rules of origin, investment, intellectual property rights, competition, trade remedies, government procurement, as well as trade and sustainable development. In addition, the Agreement also includes provisions on small and medium-sized enterprises (SMEs), cooperation and capacity building, with a view to supporting the Parties in effectively taking advantage of the opportunities arising from the Agreement.

General information:

• Name of the Agreement: Viet Nam – EFTA Free Trade Agreement (VN–EFTA FTA)
• Parties: Viet Nam and the European Free Trade Association (EFTA), comprising Iceland, Liechtenstein, Norway and Switzerland
• Conclusion of negotiations: 02 July 2026
• Nature of the Agreement: A new-generation, comprehensive and high-standard free trade agreement.

Contents of the Agreement

The Agreement consists of 14 main areas:

Trade in Goods

For industrial goods and fishery products, the EFTA States commit to continuing the complete elimination of import duties on products originating from Viet Nam as soon as the Agreement enters into force. On Viet Nam’s side, most import duties on industrial goods and fishery products from EFTA will be reduced and eliminated within a maximum period of 11 years.

For agricultural products, the Parties apply market-opening schedules that are consistent with their respective trade interests and levels of sensitivity. A number of key export products from EFTA, such as cheese, coffee, chocolate, infant food and food supplements, will enjoy a 0% tariff when entering the Vietnamese market under a tariff elimination schedule of up to 16 years. At the same time, EFTA also grants Viet Nam preferences equivalent to those provided under its recently concluded FTAs.

Rules of Origin

The Agreement provides a comprehensive system of rules of origin to ensure that goods benefiting from preferential tariff treatment genuinely originate from the Parties. A notable feature is the mechanism for cumulation of origin among EFTA Member States and Viet Nam. The Agreement also allows extended cumulation for non-agricultural materials originating from ASEAN or EU countries, provided that those countries have a preferential trade agreement with EFTA. It further sets out product-specific origin criteria, methods of origin certification, and provisions on processing and manufacturing operations.

Trade Facilitation

The Parties commit to simplifying and modernizing customs procedures, enhancing transparency, applying international standards, and fully implementing their commitments under the WTO Trade Facilitation Agreement.

Trade Remedies

The Agreement reaffirms the rights and obligations of the Parties under WTO agreements on anti-dumping, countervailing measures and safeguards. At the same time, the Parties commit to enhancing transparency, conducting consultations before applying trade remedy measures, and working towards limiting the use of anti-dumping measures among the Parties. In addition, the Agreement establishes a bilateral safeguard mechanism to address cases where increased imports cause serious injury to the domestic industry.

Sanitary and Phytosanitary Measures and Technical Barriers to Trade

The Agreement establishes cooperation mechanisms to minimize technical barriers and sanitary and phytosanitary obstacles in trade. The Parties commit to enhancing transparency, exchanging information, designating contact points, and promoting the development of technical regulations based on scientific evidence and international standards.

Trade in Services

The chapter on trade in services is built on the foundation of the WTO General Agreement on Trade in Services (GATS), but provides for a deeper level of commitments. The Agreement includes provisions on national treatment, transparency in regulation, payments and transfers, and contains specific annexes on financial services, telecommunications, international maritime transport, and the movement of natural persons. The two sides commit to opening their markets at a level equivalent to or higher than their existing WTO commitments in many service sectors.

Investment

The Agreement provides for the principle of national treatment for investors of the Parties in various non-service sectors under a “positive list” approach. Sectors such as agriculture, mining, and manufacturing are opened to investment, subject to certain exceptions relating to land-use rights or investment screening. At the same time, the Agreement affirms each country’s right to adopt policies aimed at protecting public health, the environment, and responding to climate change.

Intellectual Property Rights

The Agreement includes comprehensive provisions on the protection and enforcement of intellectual property rights, including copyright, trademarks, patents, industrial designs, geographical indications, trade secrets, and border control measures. The Parties reaffirm their full implementation of the WTO TRIPS Agreement and encourage participation in additional international treaties related to intellectual property.

Government Procurement

The government procurement chapter aims to enhance transparency, promote the use of electronic procurement, and strengthen cooperation among the Parties. The Agreement also lays the foundation for further negotiations on the opening of government procurement markets and emphasizes the role of public procurement in sustainable development as well as in supporting small and medium-sized enterprises.

Competition

The Parties agree to establish a fair competitive environment by preventing anti-competitive practices such as exclusive agreements or the abuse of a dominant market position. The Agreement also establishes cooperation and consultation mechanisms through the Joint Committee to address issues arising during implementation.

Trade and Sustainable Development

The Agreement dedicates a separate chapter to sustainable development, under which the Parties commit to fully implementing international treaties on labour and the environment. On labour, the Parties reaffirm the implementation of the Conventions of the International Labour Organization (ILO), and promote gender equality and non-discrimination. On the environment, the Parties commit to implementing the Paris Agreement on climate change, conserving biodiversity, and sustainably managing natural resources.

Cooperation and Capacity Building

The Agreement establishes a framework for technical cooperation to help the Parties better take advantage of the opportunities created by the FTA, through capacity-building activities, experience sharing, and technical assistance. Cooperation activities will be reviewed periodically by the Joint Committee.

Small and Medium-sized Enterprises (SMEs)

The Agreement emphasizes support for small and medium-sized enterprises in accessing information on markets, trade regulations and business opportunities through publicly available online portals in English. The Parties also strengthen cooperation and exchange experience in developing policies to help SMEs effectively benefit from the Agreement.

Institutions and Dispute Settlement

The Agreement establishes a Joint Committee composed of representatives of all Parties to supervise implementation and promote the further development of the Agreement. For disputes arising during implementation, the Agreement provides mechanisms for consultation, mediation and arbitration. If no resolution is reached through consultations, the dispute will be settled by an arbitral tribunal composed of three arbitrators in accordance with the procedures set out in the Agreement.

The conclusion of negotiations (English) is attached below:

• Viet Nam - EFTA Factsheet

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