The economies of the European Free Trade Association (EFTA) consider Viet Nam a key partner in their strategy to diversify supply chains in Asia, thanks to its stable growth and deep integration into global trade.

This assessment was shared by EFTA parliamentarians with the Hanoi Press and Broadcasting Agency following the visit to Viet Nam in late April by a delegation of the EFTA Parliamentary Committee, comprising parliamentarians from Norway, Switzerland, Iceland, and Liechtenstein, to explore the investment environment and promote the completion of a free trade agreement between the two sides.

As part of their working program, the delegation visited the VinFast factory and the DEEP C industrial park in Hai Phong – models considered to reflect the trend of large-scale industrial development and sustainable transformation in Viet Nam.

According to the parliamentarians, the field surveys helped them gain a clearer understanding of the potential for cooperation after the free trade agreement is signed.

Swiss Member of Parliament Damian Müller stated that visits to Hai Phong, Dong Nai, and Ba Ria-Vung Tau demonstrated “concrete and significant potential” for cooperation between EFTA businesses and Vietnamese localities.

He noted that these regions are not only economic hubs but also demonstrate a commitment to modernization, sustainable development, and international integration. “To realize this potential, it is crucial to build trust and stability. Free trade agreements will provide that foundation,” he said.

At the regional level, Nikolai Astrup, Chairman of the EFTA Parliamentary Committee, assessed Viet Nam as one of the fastest-growing economies in the world with strong ambitions for future development.

Amidst geopolitical changes, EFTA businesses are seeking to diversify their supply chains and enhance resilience, while maintaining high standards of quality, sustainability, and transparency.

According to Astrup, Viet Nam offers “an attractive combination of economic growth, stability, and deep integration into the global trade network.”

He argued that Viet Nam is not only a competitive manufacturing hub but is also gradually improving its position in the value chain, especially in areas such as renewable energy, circular economy, precision engineering, and pharmaceuticals.

Furthermore, Viet Nam's position within the ASEAN region and its network of free trade agreements are also considered important factors in strengthening connections with European businesses.

Regarding the policy framework, EFTA parliamentarians believe that the free trade agreement between the two sides will play a crucial role in improving the business environment.

Sebastian Gassner, a member of parliament from Liechtenstein, stated that free trade agreements not only help reduce tariffs but also increase transparency and predictability for trade and investment, while reducing bureaucracy and uncertainty for businesses.

He emphasized that Liechtenstein businesses are highly specialized and closely linked to global value chains, thus requiring reliable partners. According to him, the visit showed that there is still much potential for strengthening cooperation with Viet Nam compared to other markets in the region.

From a sectoral perspective, Icelandic Member of Parliament Grímur Grímsson suggested that cooperation between Viet Nam and EFTA countries could expand into several high-potential areas in the near future.

In particular, fisheries and marine technology are prominent areas, where improved market access can boost exports and facilitate the exchange of experience in marine resource management, aquaculture, and sustainable technologies.

In addition, geothermal energy – a strong area for Iceland – is also seen as a long-term area of cooperation, along with sectors such as advanced manufacturing and financial services.

The lawmakers argued that a comprehensive free trade agreement would help create a stable and predictable trade environment, thereby expanding opportunities for economic cooperation between the two sides in the long term.

Amidst the ongoing transformation of global supply chains, EFTA economies view Viet Nam as a suitable partner for building sustainable and long-term economic cooperation in Asia.

By 2025, trade turnover between Viet Nam and EFTA countries is expected to reach approximately US$5.5 billion, with bilateral growth maintaining above 10% per year in recent years.

The main areas of cooperation include electrical machinery, pharmaceuticals, mechanical equipment, and manufactured industrial products, reflecting the increasingly complementary nature of the two countries' economic structures.

Source: Vietnam.vn

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