EFTA signs trade deal opening Vietnam’s 100 million-person market

A free trade agreement between Vietnam and the EFTA states will make almost all their current exports to Vietnam tariff-free, either when the deal takes effect or in stages afterward, mbl.is reported. Iceland’s Foreign Minister Þorgerður Katrín Gunnarsdóttir signed the agreement on Iceland’s behalf in Hanoi earlier this week.

The agreement brings together Vietnam and the EFTA states of Iceland, Norway, Switzerland and Liechtenstein. According to Iceland’s Foreign Ministry, it improves market access for goods and services, makes trading conditions more predictable and strengthens investment ties among the parties.

Vietnam has a population of more than 100 million. Iceland’s goods exports to the country reached 452 million krónur in 2025, a 40% increase from the previous year. Mackerel was the largest individual export item, while seafood made up about 93% of Iceland’s goods exports to Vietnam.

The ministry said the deal is important for exports of seafood and machinery. It will give EFTA businesses market access in key sectors on terms comparable to those enjoyed by major competitors. Gunnarsdóttir said the agreement creates new opportunities for Icelandic companies, particularly in fisheries and geothermal energy.

The agreement covers trade in goods and services, investment, rules of origin, intellectual property rights and public procurement. It also seeks to facilitate trade for small and medium-sized businesses and includes commitments on environmental protection, climate issues and workers’ rights.

Vietnam’s Minister of Industry and Trade, Lê Mạnh Hùng, signed on behalf of his country. Gunnarsdóttir also held a bilateral meeting with Vietnam’s Deputy Minister of Trade, Luong Hoang Thai.