Vietnam and the European Free Trade Association (EFTA‑Iceland, Liechtenstein, Norway, Switzerland) formally concluded negotiations for a comprehensive Free‑Trade Agreement (FTA) on 2 July 2026 in Reykjavik, Iceland, marking the end of a 14‑year negotiation journey. The text now moves toward formal signature and domestic ratification, paving the way for preferential market access for Vietnamese goods into four high‑income European economies.
Launched in Hanoi on 2 July 2012, talks ran for 16 rounds until 2018 before hitting an impasse. Negotiations were relaunched on 8 September 2025, and five further rounds of technical discussions led to the final breakthrough at the EFTA Ministerial Meeting in late June 2026. In total, 21 official negotiation sessions were held between the two sides.
The comprehensive FTA covers trade in goods and services, rules of origin, investment, intellectual‑property rights, government procurement, competition, sustainable development and SME cooperation. Under the tariff roadmap, EFTA will eliminate duties immediately on most Vietnamese industrial goods and seafood upon entry‑into‑force. Vietnam will phase out tariffs on EFTA manufactured goods over up to 11 years, with longer transition periods (up to 16 years) for sensitive agricultural products.
Official EFTA statistics, excluding Swiss gold trade, show robust bilateral expansion: total two‑way trade reached €4.8 billion in 2025, with Vietnam recording a €2.5 billion trade surplus, a five‑fold increase from just €0.5 billion ten years ago. Top Vietnamese exports to EFTA include electrical machinery, footwear, apparel and seafood, while EFTA mainly exports pharmaceuticals, machinery and fishery products to Vietnam.
Economists view the EFTA‑Vietnam deal as a key complement to the EU‑Vietnam FTA (EVFTA). Once ratified, it is expected to boost Vietnamese exports, attract high‑tech European investment and strengthen Vietnam’s diversification strategy amid rising global trade uncertainty.