Hanoi (VNA) – According to UK-based Trade Finance Global, the four member states of the European Free Trade Association (EFTA), namely Iceland, Liechtenstein, Norway and Switzerland, believe that a free trade agreement (FTA) with Vietnam will expand market access opportunities, reduce trade costs and provide a more stable and transparent framework for business and investment.
Regarding market access and trade benefits, the EFTA countries expect the agreement to gradually eliminate tariffs on almost all goods exported by the four countries to Vietnam, either upon its entry into force or within a maximum period of 16 years.
Asdis Olafsdottir, Head of Communications at the EFTA Secretariat, said the agreement will open up new opportunities across a range of sectors, from seafood and machinery to watches and chocolate.
According to the Norwegian Government, around 50% of Norwegian goods exports will be exempt from tariffs upon entering Vietnam, with the proportion expected to exceed 98% within seven years. In return, Vietnamese exports to EFTA countries will also benefit from tariff exemptions or reductions.
On facilitating business operations, EFTA representatives said lower trade costs, simplified customs procedures and greater transparency will particularly benefit small and medium-sized enterprises (SMEs), which are considered the backbone of the member states’ economies.
The agreement covers goods, services, investment, intellectual property, sustainable development and other areas, thereby providing a predictable framework for trade and investment activities.
Bilateral trade with Vietnam has increased fivefold compared with a decade ago. EFTA exports to Vietnam, particularly electrical machinery and fish, have also recorded significant growth. Vietnam is the sixth ASEAN member state to sign an FTA with EFTA.
The agreement comes as Vietnam seeks to diversify its trading partners and supply chains amid global trade tensions and uncertainty. Meanwhile, the European Union (EU) upgraded its relations with Vietnam to a comprehensive strategic partnership in January 2026 and is seeking to strengthen access to Vietnam’s critical mineral resources./.
