On 18 October 2026, after 14 years of negotiations, Vietnam and the European Free Trade Association signed a free‑trade agreement. The signing, witnessed by Vietnam’s top leaders, marks a new chapter for trade and investment between the two sides.

The comprehensive agreement covers trade in goods, services, investment, intellectual property, government procurement, competition, SMEs, dispute settlement and sustainable development. It also includes rules on tariffs, technical barriers, sanitary measures and customs procedures.

According to the deal, the broader scope is expected to give Vietnam fresh chances to diversify its export and import markets, raise business competitiveness and join global value chains more deeply. It also aims to draw high‑quality investment, advanced technologies and management expertise from leading European economies.

Bilateral trade between Vietnam and EFTA already averages nearly $2 billion a year. Vietnam mainly sells seafood, footwear, textiles, machinery and electronics, while it buys machinery, chemicals, pharmaceuticals and production materials from EFTA members.

Investment data show that by the end of 2025 Swiss projects in Vietnam reached 234 with more than $2.4 billion in capital, and Norway had 62 projects worth over $201 million. These figures suggest that the agreement could boost further foreign projects, creating jobs and strengthening the Vietnamese economy.