EFTA and Vietnam sign free trade agreement

President Parmelin took part in high-level discussions during the negotiations, which took place in Geneva. Keystone-SDA

A new free trade agreement, described as “ambitious” by its stakeholders, has been signed between the European Free Trade Association (EFTA), of which Switzerland is a member, and Vietnam. The agreement, announced on Thursday in Reykjavik, Iceland, aims to eliminate customs duties and facilitate trade.

The agreement is seen as a modern and comprehensive text, said the Federal Department of Economic Affairs, Education and Research. It covers a wide range of areas, including trade in goods and services, rules of origin, sanitary and phytosanitary measures, technical barriers to trade, investment, intellectual property rights and public procurement.

The Swiss President, Guy Parmelin, who is also the economics minister, represented Switzerland during the ministerial discussions. Negotiations for this agreement resumed in September 2025 in Geneva and took place over five rounds.

‘Trusted partners’

Speaking as the EFTA spokesperson for these negotiations, the Norwegian Minister for Foreign Affairs, Espen Barth Eide, welcomed the agreement. “In times of global uncertainty, it is more important than ever to strengthen ties with trusted trading partners,” he said. He expressed his “conviction that the agreement between EFTA and Vietnam will open up new trade opportunities for businesses”.

The four member states of EFTA are Switzerland, Norway, Iceland and Liechtenstein.

For his part, Vietnam’s Deputy Minister of Industry and Trade, Nguyen Sinh Nhat Tan, emphasised the importance of this treaty for his country.

“The agreement is of particular importance, as it links economies with highly complementary strengths,” he said. He highlighted the role of the EFTA states as “world leaders in innovation, technology and finance” and that of Vietnam as “one of Asia’s most dynamic economies”. In his view, the agreement “will help to create a stable, transparent and predictable trading environment”.

Growing trade

Bilateral trade between the EFTA states and Vietnam has grown steadily over the last decade. In 2025, it reached €4.8 billion (CHF4.4 billion). Vietnam’s trade surplus stood at €2.5 billion, compared with €0.5 billion ten years earlier. It should be noted that the Swiss figures exclude trade in gold.

+ Switzerland set to forge closer ties with Vietnam

The main products exported by EFTA countries to Vietnam in 2025 were electrical machinery, fish, pharmaceuticals and mechanical machinery. Conversely, the most significant imports were electrical machinery, footwear and clothing.

Translated from French/sub-editing gw