Vietnam Signs Free Trade Agreement with EFTA, Opening New Trade Opportunities
The agreement aims to boost market access, attract European investment and strengthen Vietnam’s role in global value chains, including footwear, textiles and manufacturing.
LW Desk
Vietnam has signed a free trade agreement with the European Free Trade Association (EFTA), marking a significant step towards strengthening economic ties with European markets and expanding international trade opportunities.
The agreement was officially signed on October 18 in Hanoi by Vietnam’s Minister of Industry and Trade, Le Manh Hung, and representatives of EFTA member countries, in the presence of General Secretary and President To Lam.
The Vietnam-EFTA Free Trade Agreement (VEFTA) covers a broad range of areas, including trade in goods and services, investment, intellectual property, government procurement, competition, customs procedures and sustainable development. It also addresses technical barriers to trade, sanitary and phytosanitary measures, and dispute settlement.
The agreement is expected to help Vietnam diversify its export markets, improve business competitiveness and attract investment, advanced technologies and management expertise from leading European economies.
Footwear and textiles among key export sectors
Footwear and textiles are among Vietnam’s major exports to EFTA markets, alongside seafood, machinery, electronics and components. Vietnam also imports industrial machinery, chemicals, pharmaceuticals and production materials from EFTA countries, reflecting the complementary nature of bilateral trade.
Trade between Vietnam and EFTA member countries has averaged nearly US$2 billion annually. The new agreement is expected to strengthen these commercial links and create additional opportunities for businesses on both sides.
Investment cooperation is another important aspect of the relationship. By the end of 2025, Switzerland had 234 investment projects in Vietnam, with registered capital exceeding US$2.4 billion. Norway had 62 projects, representing more than US$201 million in registered investment.
EFTA companies are already active in Vietnam across industries including manufacturing, food, pharmaceuticals, energy and technology. Further investment opportunities are emerging in high technology, innovation, logistics and precision engineering.
A step towards deeper economic integration
The VEFTA is expected to support stronger business partnerships, encourage sustainable development and improve Vietnam’s access to European markets. For the footwear and textile industries, the agreement could provide a framework for expanding trade relationships and exploring new commercial opportunities.
Its long term impact will depend on the agreement’s implementation and the specific market access commitments available to businesses. Nevertheless, the deal represents an important step towards closer economic cooperation between Vietnam and EFTA member countries.
