The Vietnam-EFTA Free Trade Agreement (VEFTA) was signed in Hanoi on Sunday in the presence of Vietnamese Party Chief and President To Lam and representatives of the participating countries.

The deal is Vietnam’s 18th free trade agreement (FTA) with foreign countries and trading blocs.

EFTA is an intergovernmental organization comprising Switzerland, Iceland, Norway and Liechtenstein, with strengths in innovation and advanced industries. The agreement aims to strengthen economic ties, promote free trade, and reinforce a rules-based trading system amid global economic uncertainty.

VEFTA covers trade in goods, including tariffs, technical barriers, customs procedures and trade remedies, as well as services, investment, intellectual property, dispute settlement, trade and sustainable development.

For Vietnam, the agreement is expected to diversify export and import markets, improve business competitiveness, and help domestic companies integrate more deeply into global value chains.

It could also create opportunities to attract higher-quality investment, advanced technology and management expertise from developed European economies.

According to the Ministry of Industry and Trade, annual trade between Vietnam and EFTA members currently averages around $2 billion. Vietnam mainly exports seafood, footwear, textiles and garments and electronic equipment to the bloc, while importing machinery, industrial equipment, chemicals and pharmaceuticals.

As of the end of 2025, Switzerland had 234 valid projects in Vietnam, with registered investment of $2.4 billion. Norway had 62 projects with registered capital of over $200 million.

Swiss President Guy Parmelin welcomed the signing of VEFTA during a meeting with Vietnamese Prime Minister Le Minh Hung in Hanoi last Saturday, held as part of his official visit to Vietnam.

Parmelin said the agreement would create opportunities to expand trade and investment and strengthen business links between the two countries, particularly among small and medium-sized enterprises.

Switzerland is ready to share its expertise and strengths in insurance, reinsurance, manufacturing, precision machinery and high technology, he stressed.The Swiss president also proposed linking Switzerland’s Crypto Valley hub with Vietnam’s innovation ecosystem to promote cooperation in blockchain, artificial intelligence and quantum technology.