The agreement, known as VEFTA, has strategic significance amid global trade volatility, intensifying geopolitical and commercial competition, and a rise in protectionism.
EFTA comprises Switzerland, Norway, Iceland, and Liechtenstein, 4 developed European economies that are also global leaders in innovation.
Dr. Le Duy Binh, director of Economica Vietnam, said the agreement will help Vietnam diversify its supply chains - both in terms of export markets and the inputs required for production - technology, raw materials, auxiliary components, pharmaceuticals, and other inputs.
"This will mitigate risks should volatility arise in other markets,” said Dr. Binh.
The agreement reflects shared interests of Europe, which is seeking reliable economic partners, and Vietnam, which is strengthening its position in international trade and global supply chains.
Vietnam has signed 18 free trade agreements, many of them high standard, next generation deals.
