EFTA and Vietnam Strike Milestone Free Trade Agreement

The European Free Trade Association has finalized a free trade agreement with Vietnam to enhance commercial ties amid global tariff conflicts. This accord, which includes multiple economic sectors, marks the conclusion of negotiations that began in 2012, following a brief stalemate, and reflects the substantial growth of trade in recent years.

The European Free Trade Association (EFTA) announced Thursday the successful conclusion of negotiations on a free trade agreement with Vietnam. This pivotal accord aims to diversify commercial relations and mitigate the impact of global trade tensions, notably around tariffs.

EFTA, comprising Iceland, Liechtenstein, Norway, and Switzerland, highlights that the agreement encompasses a variety of economic areas, including investment, intellectual property, and trade remedies. Switzerland, EFTA's largest economy, had previously been heavily impacted by U.S. tariffs.

Initiated in 2012, the negotiations saw a stalemate in 2018 but were resumed in 2025, culminating in this agreement. The trade between the EFTA bloc and Vietnam has consistently increased over the last decade, reaching a value of 4.8 billion euros by 2025.