Ivo Sieber, former Swiss Ambassador to Việt Nam and now member of the Swiss-Việt Nam Economic Forum. — VNA/VNS Photo

GENEVA — Swiss President Guy Parmelin’s official visit to Việt Nam, and the signing of a free trade agreement (FTA) between Việt Nam and the European Free Trade Association (EFTA) have opened up new scope of cooperation for Việt Nam and Switzerland, according to Ivo Sieber, former Swiss Ambassador to Việt Nam and now member of the Swiss-Việt Nam Economic Forum (SVEF).

Sieber said the October 17-18 visit focuses on two major issues. The first is the 55th anniversary of diplomatic relations between Switzerland and Việt Nam, while the second is the signing of the FTA between Việt Nam and the four member states of the European Free Trade Association (EFTA), namely Switzerland, Norway, Liechtenstein and Iceland.

He said the agreement will establish a formal, stable and transparent legal framework, facilitating business activities by companies and investors from the four EFTA countries in Việt Nam and vice versa.

With its comprehensive scope, the EFTA-Việt Nam FTA will not only promote trade and investment but also cover areas such as intellectual property protection, rules of origin, public procurement and sustainable development. Trade liberalisation and greater transparency are also expected to spur development in innovation, research and the financial sector.

Reflecting on the 55-year history of diplomatic relations, Sieber said that in 1971, only the most far-sighted observers could have imagined how strong, extensive and comprehensive ties between Switzerland and Việt Nam would become. This development is closely linked to Việt Nam’s remarkable socio-economic progress and its growing importance in the region and internationally. It also demonstrates the complementarity and mutual trust underpinning a successful partnership between the two countries.

The establishment of a comprehensive partnership in 2025 marked a new milestone in bilateral relations, paving the way for deeper and more effective cooperation.

On July 2, 2026, Việt Nam and EFTA announced the conclusion of negotiations on their FTA. Sieber described the signing of the agreement as an important step forward. After the documents are signed, each country will need to complete its ratification procedures before the agreement can take effect.

As a result, the agreement might not enter into force until 2028 rather than 2027. This will give governments, business associations and, particularly, companies time to familiarise themselves with its provisions and scope, prepare for implementation and identify ways to maximise its benefits. Sieber expressed confidence that businesses would make effective use of this period to capitalise on the opportunities as soon as the FTA comes into force.

Switzerland is a large market with strong purchasing power and considerable appeal for consumer and investment goods. It is also an attractive destination for investors in industry, services, research and innovation.

Given Việt Nam’s dynamic and expanding economy and its need to diversify supply, distribution and trade channels, Switzerland offers promising opportunities for Vietnamese small and medium-sized exporters. At the same time, it could become an increasingly attractive gateway for Vietnamese investors seeking to enter the Swiss market and expand further into the European Union, particularly in finance, biotechnology, precision engineering, pharmaceuticals, education and hospitality, he held. — VNA/VNS