Iceland, Liechtenstein, Norway and Switzerland have signed a free trade agreement with Vietnam that will progressively remove tariffs on almost all their existing exports to the country, Trade Finance Global reported. The four European Free Trade Association (EFTA) members signed the accord in Hanoi on 18 October, following negotiations that began in 2012 and resumed in September 2025 after a pause.
The tariff reductions will take effect over different periods. Citing the Norwegian government, Trade Finance Global said roughly half of Norway’s exports would qualify for tariff-free entry when the agreement takes effect, rising to more than 98% within seven years. Vietnamese goods entering EFTA markets will receive either duty-free treatment or lower customs duties. The report did not specify when the agreement would enter into force.
Asdís Ólafsdóttir, head of communications at the EFTA Secretariat, told the outlet that tariffs on nearly all current exports from the four countries to Vietnam would disappear either immediately upon implementation or within a maximum of 16 years. She identified opportunities across seafood, machinery, watches and chocolate. The agreement also encompasses services, investment, intellectual property and sustainable development, alongside trade in goods.
Bilateral trade between Vietnam and EFTA totalled €4.8 billion in 2025, excluding Swiss gold trade, according to Trade Finance Global. Vietnam recorded a €2.5 billion surplus. The outlet also reported substantial growth in EFTA shipments of electrical machinery and fish to Vietnam. Ólafsdóttir said lower trading costs, simpler customs processes and improved transparency would be particularly valuable for small and medium-sized businesses.
The agreement is separate from Vietnam’s trade arrangements with the European Union, whose own free trade deal with the country has been in place since 2020. EFTA’s members are outside the EU and conduct their trade negotiations independently. Vietnam becomes the sixth Association of Southeast Asian Nations member to sign an EFTA free trade agreement. The deal comes as Vietnam seeks a broader range of trading partners and deeper participation in international supply chains amid uncertainty over global tariffs and trade relations.