A Big Opportunity for Vietnam’s Garment Industry: Vietnam and EFTA Push to Conclude FTA Talks
News: Vietnam and EFTA Push to Conclude FTA Talks
- The 18th negotiation round of the Free Trade Agreement (FTA) between Vietnam and the European Free Trade Association (EFTA) is being held in Da Nang from November 25 to 28, according to the Ministry of Industry and Trade.
- At the opening session, Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan, who also serves as Vietnam’s chief negotiator, emphasized that both sides are aiming to finish the negotiation at this round. He noted that Vietnam and EFTA are ready to use “necessary flexibilities” to reach a balanced, mutually beneficial agreement.
- After the first day of talks, Pham Hung, Deputy Chief of the Office of the Steering Committee for International Economic Integration, reported that discussions are moving positively, and both sides are working hard to close the remaining gaps.
About EFTA Mean?
The European Free Trade Association (EFTA) is a regional economic group made up of four high-income European countries:
- Switzerland
- Norway
- Iceland
- Liechtenstein
EFTA was founded in 1960 as an alternative to the European Union (EU). While EFTA countries are not EU members, they still maintain strong economic ties with Europe and the world through free trade agreements.
Why This Matters for Vietnam’s Garment Industry
Although trade between Vietnam and EFTA (Switzerland, Norway, Iceland, and Liechtenstein) is smaller than trade with other major partners, the two sides are highly complementary—especially in the textile and garment sector, one of Vietnam’s top export categories.
Vietnam’s Garment Strength vs. EFTA’s Market Needs:
- EFTA countries do not have large-scale garment manufacturing, meaning they rely heavily on imports.
- Vietnam exports footwear, textiles, and garments to EFTA with strong and stable performance.
- At the end of 2024, total Vietnam–EFTA trade reached over US$3.5 billion, showing steady growth each year.
For garment factories in Vietnam, this FTA could bring:
- Lower (or zero) import duties for apparel entering wealthy EFTA markets.
- Faster customs clearance and more predictable trade rules.
- Opportunities to supply high-value markets with strong purchasing power—especially Switzerland and Norway.
FTA Benefits Expected for Garment Importers & Exporters
Exporters:
Duty-Free Access
EFTA countries generally impose high import duties on apparel. Eliminating or reducing them will make Vietnam more competitive against suppliers from Turkey, Bangladesh, and China.
Stronger Rules of Origin Cooperation
Garment manufacturers may benefit from:
- Flexible rules of origin for fabric and trims
- Recognition of Vietnam’s expanding local textile base
- Smoother certification and customs procedures
These changes could unlock higher-margin orders.
A Stable and Predictable Export Path
With the global economy still volatile, a signed FTA gives Vietnam’s garment industry:
- Long-term market stability
- A safer trade corridor
- New customers in high-value markets
Importers:
Lower Landing Costs
The FTA will reduce or remove import duties on garments from Vietnam, helping importers cut total sourcing costs and stay competitive in Switzerland, Norway, Iceland, and Liechtenstein…
Simpler Rules of Origin
Importers may benefit from:
- Easier qualification for duty-free treatment
- Clearer documentation and smoother customs checks
- More flexibility in fabric and trim sourcing
These improvements reduce risks and simplify the import process.
Faster & More Predictable Supply
With unified trade procedures under the FTA, importers gain:
- Shorter clearance times
- More reliable delivery schedules
- Better inventory planning for retail and e-commerce
A stable supply chain means fewer delays and stronger business performance.
Conclusion / Final Words
The Vietnam EFTA FTA marks a promising step forward for both sides. For Vietnam’s garment industry, it opens the door to high-value markets with lower duties, smoother customs procedures, and more stable long-term demand. For EFTA importers, the agreement delivers lower landing costs, easier rules of origin, and a more reliable supply chain powered by one of the world’s most competitive apparel-producing countries. Once signed, this FTA will create a more efficient, predictable, and mutually beneficial trade environment helping manufacturers and buyers work together with greater confidence and stronger growth potential.
