HÀ NỘI — Việt Nam and the European Free Trade Association (EFTA) have begun the 18th round of negotiations on a bilateral free trade agreement (FTA), the Ministry of Industry and Trade said on Wednesday.

The talks in Đà Nẵng from November 25–28 are being led by Deputy Minister of Industry and Trade Nguyễn Sinh Nhật Tân, who also heads Việt Nam’s government negotiating team.

At the opening session, Tân said the choice of Đà Nẵng – a dynamic economic hub and the first locality in Việt Nam to establish a free trade zone – reflects the country’s strong commitment to deeper integration. He added that both sides aim to reach a basic conclusion in this round and are ready to make necessary compromises to achieve a balanced deal.

Phạm Hùng, deputy chief of the office of the Government’s Steering Committee for International Economic Integration, said after the first day that the talks were progressing positively, with both sides working to narrow remaining gaps.

Trade between Việt Nam and EFTA – comprising Switzerland, Norway, Iceland and Liechtenstein – remains modest compared with Việt Nam’s major partners but is highly complementary. Two-way trade exceeded US$3.5 billion in 2024, with steady growth in recent years.

Việt Nam’s key exports to EFTA markets include footwear, textiles, machinery, phones and components and agricultural products such as coffee and cashew nuts. Imports mainly consist of high-technology and high value-added products such as pharmaceuticals, precision machinery, medical equipment and chemicals.

EFTA members bring distinct strengths. Switzerland is a global centre for finance, biotechnology and pharmaceuticals. Norway is known for energy, seafood and maritime technology. Iceland has advantages in geothermal energy and fish processing. Liechtenstein is a financial hub with a strong precision components industry.

Despite a population of just over 13 million, EFTA is among the world’s wealthiest economic blocs, with a combined GDP of more than $1.1 trillion and per capita income of about $85,000.

The bloc records nearly $700 billion in annual trade and holds around $2 trillion in outward investment assets.

The Đà Nẵng round focuses on resolving outstanding issues with a pragmatic and flexible approach. A timely conclusion and signing of the FTA would help both sides respond better to global economic uncertainties, the ministry said. — VNS