Vietnam-EFTA free trade agreement on track for 2027 implementation

Vietnam and the four-member European Free Trade Association (EFTA) have finalized a free trade agreement after 14 years of negotiations, with implementation targeted for 2027. The pact represents a significant milestone in deepening economic cooperation between the Southeast Asian nation and the bloc comprising Switzerland, Norway, Iceland, and Liechtenstein.

Switzerland stands as Vietnam's principal trading partner within EFTA. Swiss statistics indicate bilateral trade climbed to approximately 3.5 billion USD in 2025, representing a year-on-year increase of nearly 26 percent. Official data from Vietnam's Department of Customs recorded two-way trade totaling 806.2 million USD during the first nine months of 2026, underscoring the robust commercial momentum between the two economies.

Swiss investment in Vietnam has also expanded considerably. As of September 30, Switzerland maintained 247 active investment projects across the country, with total registered capital reaching around 2.5 billion USD. This positions Switzerland as the 20th largest investor among 154 countries and territories with investments in Vietnam, reflecting growing confidence in the nation's business environment and economic prospects.

The forthcoming trade agreement is expected to facilitate further market access and investment flows, potentially accelerating bilateral commerce and strengthening Vietnam's integration into global trade networks. The deal also signals broader European engagement with Southeast Asia amid shifting geopolitical and economic dynamics in the region.

Photo: A cargo ship at Cat Lai Port on the Saigon River, Ho Chi Minh City, June 2013. Bem photography via Wikimedia Commons (CC BY 2.0).