Vietnam's Landmark Trade Deal With EFTA Opens Doors to Premium European Markets

A game-changing deal links Vietnam to Switzerland, Norway, and beyond—but only firms that upgrade quality and sustainability will thrive. Can they rise to the challenge?

, and Administrator

2026 February 3 . 1:19 AM

1 min read

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Vietnam's Landmark Trade Deal With EFTA Opens Doors to Premium European Markets

The Vietnam-EFTA Free Trade Agreement (VEFTA) is set to create new opportunities for Vietnamese businesses in high-income markets. This landmark deal connects Vietnam with four European nations—Iceland, Liechtenstein, Norway, and Switzerland—under a single, high-standard trade framework.

VEFTA introduces strict requirements on labour, environmental protection, food safety, and sustainable development. To meet these standards, businesses must move away from competing on price alone. Instead, they will need to focus on quality, technology upgrades, and better governance.

The agreement is expected to boost exports in key sectors such as textiles, footwear, agriculture, and food processing. Some service industries may also see growth. However, areas like transport equipment, steel, and finance could face stronger competition from imported goods.

For VEFTA to succeed, Vietnam must improve its institutions, build capacity, and cut compliance costs. The government, businesses, and research institutions will need to work closely together. Industry associations should also step in to support smaller firms with technical guidance.

So far, none of the EFTA countries have signed separate trade deals with Vietnam outside this agreement. This makes VEFTA the main platform for trade between the two regions.

The agreement aims to expand Vietnam's export markets and attract more investment. It also pushes for a shift toward higher standards in production and trade. Success will depend on how well businesses adapt and how effectively the country implements necessary reforms.