Vietnam and EFTA states sign free-trade agreement after 14 years

Vietnam and the four members of the European Free Trade Association signed a free-trade agreement in Hanoi on Sunday, concluding negotiations that began 14 years ago. The agreement links Vietnam with Iceland, Liechtenstein, Norway and Switzerland, a group outside the European Union but integrated into European trade networks.

The Vietnamese government said the pact was completed after 21 formal negotiating rounds. Reuters and Norway’s government described it as a broad agreement intended to reduce trade barriers and expand access for goods, services and investment. The parties have not presented the signing as immediate implementation: entry into force still depends on ratification and the domestic procedures required in the participating countries.

Vietnam already has trade agreements with the European Union and several Asian and Pacific partners. The EFTA accord adds four wealthy markets and gives their exporters a negotiated route into an economy of more than 100 million people. The commercial effect will depend on the final tariff schedules, rules of origin and how quickly governments complete approval. Sunday’s ceremony therefore closes the negotiating phase, while the legal and practical work needed to make the agreement operational remains ahead.