Story perspectives

Vietnam and EFTA Sign Free-Trade Deal, Cutting Tariffs

By Drooid · Oct 18, 2026, 2:25 PM UTC · How we work

Summary

Story summary

Vietnam and the European Free Trade Association signed a free-trade agreement in Hanoi on Oct 18 2026, witnessed by General Secretary-President To Lam.
The pact eliminates or reduces customs duties on industrial, fish and agricultural products, covering goods, services and investment.
Half of Norway’s exports to Vietnam become tariff-free immediately, rising to over 98 % within seven years.
Bilateral trade between Vietnam and EFTA averaged €4.8 billion ($5.4 billion) last year, about $2 billion annually.

History

Historical Context

ASEAN launched the ASEAN Free Trade Area on 28 January 1992, introducing the Common Effective Preferential Tariff that cut tariffs on 7,881 product categories—about 90 % of imports—to zero for the original six members. Vietnam joined ASEAN and AFTA in July 1995, committing to similar reductions. The 2024 Vietnam-EFTA agreement echoes this duty-free model, granting Norway, Switzerland, Iceland and Liechtenstein tariff-free access to Vietnamese markets.

1 of 2

Story summary

Vietnam and the European Free Trade Association signed a free-trade agreement in Hanoi on Oct 18 2026, witnessed by General Secretary-President To Lam.
The pact eliminates or reduces customs duties on industrial, fish and agricultural products, covering goods, services and investment.
Half of Norway’s exports to Vietnam become tariff-free immediately, rising to over 98 % within seven years.
Bilateral trade between Vietnam and EFTA averaged €4.8 billion ($5.4 billion) last year, about $2 billion annually.

1 / 2