The Vietnam - EFTA Free Trade Agreement (VEFTA) was signed on 18/10 in Hanoi. General Secretary and President To Lam, along with leaders of EFTA member states, witnessed the ceremony. This agreement marks the 18th free trade agreement Vietnam has signed with countries and regions, aiming to enhance economic cooperation, promote free trade, and strengthen the rules-based trading system amidst a volatile global economy.

EFTA is an intergovernmental organization comprising four countries: Switzerland, Iceland, Norway, and Liechtenstein, known for its strengths in innovation. The VEFTA agreement covers trade in goods, including tariffs, technical barriers, customs, and trade remedies. It also extends to services, investment, intellectual property, dispute settlement, trade, and sustainable development.

For Vietnam, the agreement is expected to diversify export and import markets, enhance business competitiveness, and facilitate deeper integration into global value chains. Vietnamese enterprises will also gain opportunities to attract high-quality investment capital, advanced technology, and management expertise from developed European economies.

Vietnamese and EFTA leaders at the signing ceremony on 18/10. Photo: MOIT

According to data from the Ministry of Industry and Trade, the average annual trade turnover between Vietnam and EFTA member states currently reaches about 2 billion USD. Vietnam primarily exports seafood, footwear, textiles, and electronic equipment to these nations, while importing machinery, industrial equipment, chemicals, and pharmaceuticals.

As of the end of last year, Switzerland had 234 active projects in Vietnam, with a total registered capital exceeding 2.4 billion USD. Norway had 62 projects, with registered capital over 0.2 billion USD. Many major EFTA corporations and investors are already present in Vietnam across various sectors, including industry, food, pharmaceuticals, energy, and technology. Businesses and investors from these countries are also keen on cooperation and investment opportunities in Vietnam, particularly in innovation, high-tech, logistics, and precision engineering.

Thuy Truong