By Attorney Vu Manh Quynh, Managing Partner, ECOVIS Vietnam Law | Last reviewed: 17 July 2026
Is the Vietnam–EFTA FTA in force?
No. As of mid-July 2026 the agreement is at the “negotiations concluded” stage. No preferential tariff under this agreement can lawfully be claimed on any shipment yet. Exports to Switzerland, Norway, Iceland and Liechtenstein continue under existing arrangements until the agreement enters into force.
What exactly happened on 2 July 2026?
Vietnam and EFTA jointly announced the conclusion of negotiations, following the ministerial-level conclusion at the Reykjavik meeting on 22 June 2026. This closed a negotiating process that opened in 2012, stalled in 2018 after 16 rounds, and resumed in September 2025 before closing in five further rounds. Conclusion of negotiations means the parties have agreed the substance of the deal — it does not create legal rights for traders.
What steps remain before entry into force?
Four stages, in sequence: legal review and finalisation of the agreement text; signature by the parties; each party’s domestic approval procedures (in Vietnam, the applicable ratification or approval process; in EFTA states, their respective procedures — several of which involve parliamentary approval); and finally entry into force on the date the agreement provides. The final tariff schedules and the origin protocol are published as part of this process. Vietnam has publicly indicated that it is seeking an early signing, but no signature date or entry-into-force date has been officially announced.
Can exporters use EFTA tariff preferences now?
No, and sales teams should not promise preferential pricing to European buyers on the assumption that preferences will be available by a given date. A promise of preference that the exporter cannot yet lawfully deliver is a contract risk, not a marketing point. Buyer contracts signed during this window should address tariff treatment expressly rather than assuming it.
Will the FTA cover all goods?
No general answer is possible yet. Coverage, staging periods, quotas and any exclusions depend on the final tariff schedules. The confirmed scope of the agreement includes trade in goods, rules of origin, investment, intellectual property, competition, trade remedies and government procurement — but product-level outcomes require the published schedules.
How is this different from the EVFTA?
They are separate agreements with separate parties. The EU–Vietnam Free Trade Agreement (EVFTA) governs trade with European Union member states and has been in force since 2020. EFTA — Switzerland, Norway, Iceland and Liechtenstein — is not part of the EU, and exports to those four markets gain nothing from the EVFTA. Companies exporting to both the EU and Switzerland/Norway therefore need to track two different origin and documentation regimes.
What can exporters usefully do during this window?
Prepare the readiness file that entry into force will make valuable: identify candidate SKUs and HS codes; map non-originating inputs from China, Korea and ASEAN suppliers; collect supplier declarations; review labelling, safety and traceability documentation for premium-market expectations; and allocate origin, inspection and rejection risk clearly in buyer contracts. Our companion article — Vietnam–EFTA FTA: What Exporters Should Prepare Before Tariff Preferences Apply — sets out the full preparation framework, and our customs and export compliance FAQ covers the underlying Vietnamese export mechanics.
Who should monitor this, and what should they watch?
Export directors and CFOs of Vietnamese exporters and FDI manufacturers, and European buyers sourcing from Vietnam. Watch for: the signature announcement; Vietnam’s domestic approval; publication of tariff schedules and the origin protocol; and the announced entry-into-force date. ECOVIS Vietnam Law tracks these milestones for clients as part of the Vietnam–EFTA Export Readiness Review — contact us to put your product list on a readiness footing before the schedules land.
Attorney Vu Manh Quynh is the Managing Partner of ECOVIS Vietnam Law, advising international investors on Foreign Direct Investment (FDI), corporate governance, and regulatory compliance in Vietnam.
This material is for general informational purposes only and does not constitute legal, tax or professional advice. Investors should seek specific advice based on their business sector, ownership structure and investment location in Vietnam.
