Iceland’s Minister for Foreign Affairs, Þorgerður Katrín Gunnarsdóttir, signed the EFTA–Vietnam free trade agreement on behalf of Iceland in Hanoi, Vietnam, according to Fréttatíminn. The signing marks a new phase in trade relations between Iceland and Vietnam, aiming to make it easier for Icelandic businesses to export goods and services to the Vietnamese market.
The agreement is made between the countries of the European Free Trade Association (EFTA), namely Iceland, Norway, Switzerland and Liechtenstein, and Vietnam, a nation with a population of just over 100 million. Lê Mạnh Hùng, Vietnam’s Minister of Industry and Trade, signed on behalf of Vietnam. The signing ceremony was attended by Vietnam’s President Tô Lâm. Leaders from other EFTA states, including Brigitte Haas of Liechtenstein and Guy Parmelin of Switzerland, also signed for their respective countries.
According to the Government of Iceland, the agreement will increase market access for Icelandic goods and services in Vietnam, make trading conditions more predictable, and strengthen investment links. Iceland’s Foreign Minister also met with Vietnam’s Deputy Minister of Trade, Luong Hoang Thai, during her visit.
Almost all current EFTA exports to Vietnam will become tariff-free either immediately when the agreement comes into force or gradually thereafter. This is expected to be especially important for Icelandic seafood and machinery. In 2025, seafood accounted for about 93% of Iceland’s exports to Vietnam, and overall exports to Vietnam were valued at 452 million Icelandic krónur, an increase of 40% from the previous year.
The deal covers trade in goods and services, investment, rules of origin, intellectual property, and public procurement. It also includes commitments related to environmental protection, climate change, and workers’ rights.
“With this agreement we open new opportunities for Icelandic companies in a large and growing market,” Þorgerður Katrín Gunnarsdóttir said, according to the Government of Iceland. The quote was translated from Icelandic.
Sources
- Stjórnarráð Íslands (Government of Iceland) in Icelandic
- Fréttatíminn (first reported) in Icelandic
- Viðskiptablaðið in Icelandic
- Mannlíf in Icelandic
- mbl.is in Icelandic
Image: kallerna / Wikimedia Commons (CC BY-SA 4.0) · licence, original (resized) Illustrative image.
