Vietnam and European Free Trade Association (EFTA) sign free trade agreement
The agreement is pending completion of the parties’ ratification procedures.
November 5, 2026
Vietnam and the European Free Trade Association (EFTA) states of Iceland, Liechtenstein, Norway, and Switzerland, on October 18, 2026, signed the Vietnam-EFTA free trade agreement (VEFTA). The agreement is pending completion of the parties’ ratification procedures.
Key provisions of the VEFTA include:
- Import duties: The EFTA states would eliminate import duties on nonagricultural products originating in Vietnam in accordance with their respective commitments and provide preferential treatment for agricultural products. Vietnam would eliminate or reduce import duties on goods originating in the EFTA states under product-specific schedules of up to 16 years
- Rules of origin: Goods that satisfy applicable origin criteria would qualify for preferential treatment. The agreement allows accumulation of origin between Vietnam and the EFTA states and, subject to certain requirements, accumulation for nonagricultural materials originating in the EU or an ASEAN member state having an applicable preferential trade agreement
- Trade facilitation: The parties commit to simplifying and modernizing customs procedures, enhancing transparency, applying international standards, and fully implementing their commitments under the World Trade Organization (WTO) agreement on trade facilitation
- Trade remedies: The agreement reaffirms rights and obligations under relevant WTO agreements and establishes a bilateral safeguard mechanism when preferential imports cause serious injury to domestic industries
- Sustainable development: The parties commit to implementing international agreements concerning labor and the environment, including matters related to gender equality and non-discrimination, climate change, biological diversity, and sustainable management of natural resources
Read a November 2026 report prepared by the KPMG member firm in Vietnam