However, to turn tariff preferences into a competitive advantage, businesses need to meet strict requirements on quality, traceability, and sustainable development.

Expanding market space

The Viet Nam-EFTA Free Trade Agreement connects two groups of highly complementary economies. EFTA countries, namely Switzerland, Norway, Iceland, and Liechtenstein, have leading strengths in technology, innovation, finance, clean energy, and sustainable development, while Viet Nam is one of Asia's most dynamic economies and is emerging as an important manufacturing, trade, and investment hub in the region.

Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan said the agreement provides a foundation for bringing economic relations between Viet Nam and the EFTA countries into a new phase of development. With comprehensive and high-standard commitments, the agreement will create a stable, transparent, and predictable business environment, thereby further promoting flows of trade, investment, technology, and knowledge between the two sides.

The EFTA bloc has a population of around 15 million and is considered not to be a particularly large market. However, its appeal lies in its strong purchasing power and stable demand for high-quality products. With GDP per capita exceeding 100,000 USD in 2025, several times higher than the European Union average, the EFTA is a highly promising import market for Vietnamese products in areas of strength such as seafood, agricultural products, wooden furniture, and electronics. In 2025, bilateral trade revenue reached 4.8 billion EUR, with Viet Nam recording a trade surplus of 2.5 billion EUR (excluding Switzerland's gold trade).

Currently, Viet Nam's seafood export revenue to the EFTA bloc remains very small, concentrated mainly in Switzerland and Norway. Although trade volumes are still modest, EFTA markets have considerable room for growth in the premium product segment. Economic experts say that the new generation of FTAs is shifting its focus from trade liberalisation towards improving institutional quality and business competitiveness. Once Vietnamese seafood businesses succeed in meeting EFTA's most stringent standards, the door to other developed markets will also open wider.

Regarding opportunities for two-way cooperation, Norway and Iceland have major strengths in the seafood sector, particularly in marine aquaculture, fishing, deep processing, and logistics. Norway is the world's second-largest seafood exporter, standing just ahead of Viet Nam, which ranks third. Therefore, the FTA will not only create export opportunities but also promote cooperation in technology, supply chain management, and the development of new seafood products. For Vietnamese businesses with strong processing capabilities, high-quality seafood raw materials from EFTA could support the development of products for the modern retail market or for re-export.

Enhancing competitiveness

However, as with many other new-generation FTAs, tariff preferences will only become a genuine competitive advantage when businesses meet strict standards on quality, origin, and sustainable development. Nguyen Van Minh, Director of Nghi Son Food Group Joint Stock Company, said Switzerland, Norway, and Iceland all have very high standards. As import duties fall, technical barriers and requirements relating to traceability, product quality, and social responsibility will become stricter.

The period from now until the agreement is signed, which is expected to take place in the fourth quarter of this year, is a “golden period” for businesses to urgently review their capabilities, complete compliance documentation, and prepare market access strategies in order to maximise the benefits of the FTA. Phung Thi Kim Thu, a market expert of the Viet Nam Association of Seafood Exporters and Producers (VASEP), said that businesses seeking to effectively tap into the EFTA market need to make comprehensive preparations from production areas, fishing vessels, sources of raw materials, and processing plants to traceability and sustainable development certifications.

Many Vietnamese seafood products use some imported raw materials or undergo many stages of processing. Therefore, businesses should carefully study the commitments and rules of origin applicable to each product code, cumulation mechanisms, and procedures for certifying origin to avoid missing out on the benefits of the agreement.

Nguyen Thi Hoang Thuy, Vietnamese Trade Counsellor in Sweden concurrently accredited to Denmark, Norway, Iceland, and Latvia, said the EFTA market requires high standards, but this is in line with Viet Nam's new development direction of increasing value, improving the quality of growth, and participating more deeply in sustainable and responsible supply chains.

“Businesses should start preparing immediately. They should focus on investing in quality, innovation, green transformation, and early engagement with import partners. In the new phase, businesses that move ahead on standards will move ahead in the market,” Hoang Thuy said.