Vietnam signs free trade pact with four EFTA states Oct 18
Tariffs on over 98% of Norway’s exports to Vietnam are to be removed within seven years of the new trade agreement taking effect.
- Vietnam signed a free trade agreement on October 18 with the four members of the European Free Trade Association (EFTA): Norway, Switzerland, Iceland, and Liechtenstein.
- The pact follows the revival of long-stalled negotiations, which were spurred by global trade tensions and US tariffs.
- The agreement will provide phased tariff relief, with over 98% of Norway's exports to Vietnam set to become duty-free within seven years of implementation.
- Trade between Vietnam and the EFTA countries currently averages approximately US$2 billion annually.
Vietnam signed a free trade agreement with the four members of the European Free Trade Association (EFTA) in Hanoi on Sunday (October 18, 2026), following the revival of long-stalled negotiations amid global trade tensions and US tariffs.
Vietnam’s Ministry of Industry and Trade said the agreement with Norway, Switzerland, Iceland and Liechtenstein followed negotiations that concluded in July 2026.
Talks on the Vietnam–EFTA agreement resumed in 2025 after a prolonged stalemate. The renewed negotiations came as US tariff measures encouraged countries to broaden their trading partnerships and reduce their exposure to economic risks.
Norway’s exports to gain phased tariff relief
Around half of Norway’s exports to Vietnam will become tariff-free when the agreement enters into force, according to the Norwegian government. The proportion receiving duty-free access is set to exceed 98% within seven years of implementation.
The Norwegian tariff concessions are therefore tied to the agreement taking effect, rather than becoming available immediately upon signing.
Vietnam–EFTA trade averages US$2 billion annually
Trade between Vietnam and the EFTA countries averages approximately US$2 billion a year, according to Vietnam’s trade ministry.
Vietnam’s main exports to EFTA markets include seafood, footwear, textiles, machinery and equipment, and electronic components, the Vietnamese trade ministry said.
Vietnam primarily imports industrial machinery and equipment, chemicals, pharmaceuticals and raw materials for manufacturing from EFTA countries, according to Vietnam’s trade ministry.
