In the area of trade in services, experts from both sides recorded concrete progress with agreement on provisions related to payments and transfers associated with the supply of services – a crucial element to ensure that service flows are smooth, transparent and secure. Discussions were also extended to technical issues concerning the annex on financial services as well as provisions on the movement of natural persons supplying services, which are of particular interest both to high-quality service providers from EFTA and to Vietnamese enterprises that are expanding in fields such as technology, logistics, finance, tourism and training. The two sides agreed to exchange revised offers and to hold a follow-up meeting between formal negotiating rounds in order to prepare more thoroughly for closing the sensitive provisions.
A notable highlight of the 17th round was the chapter on investment. Building on the positive momentum from the intersessional meeting in June, the negotiating teams reviewed all provisions and gradually converged on a number of key issues relating to investment protection, fair and equitable treatment, transparency and dispute settlement mechanisms. In particular, the two sides agreed on a roadmap for exchanging reservation lists – a set of important technical documents that clearly reflect the scope of sectors where each party opens its market or retains policy space. This is regarded as a foundational step enabling the next round to go deeper into the structure of specific commitments, with a view to establishing a stable and balanced framework for the protection and attraction of investment.
Alongside the trade and investment chapters, institutional and legal issues also received considerable attention. In the chapter on intellectual property rights, experts from both sides conducted a focused review of the outstanding issues, based on previously identified priorities such as enforcement of intellectual property rights, protection of trademarks, patents, industrial designs and geographical indications. The two parties agreed to maintain regular exchanges between specialised working groups so as to gradually address remaining obstacles and ensure that VEFTA commitments are both compatible with the existing legal systems of each side and conducive to innovation and technology transfer.
It is also noteworthy that the chapter on Trade and Sustainable Development (TSD) – a hallmark of many new-generation FTAs – saw constructive exchanges. Experts concentrated on common principles regarding fair trade, environmental protection, sustainable labour, energy transition and the circular economy, thereby sketching out a clearer roadmap for more detailed negotiations in subsequent rounds. The fact that the two sides have reached some convergence on the structure and implementation approach for the TSD chapter is seen as a positive signal, paving the way for more concrete outcomes at the 18th round of negotiations.
Overall, the results of the 17th round indicate that the VEFTA process is entering an “acceleration” phase, as many chapters are moving from framework discussions to the stage of fine-tuning language and narrowing options. Compared with the earlier, more exploratory rounds, current discussions are delving deeper into the technical substance of commitments, reflecting a rising level of mutual trust as well as a shared determination to soon establish a modern, comprehensive FTA framework.
From Viet Nam’s perspective, VEFTA is regarded as a “strategic piece of the puzzle” in its FTA network in Europe, complementing the EVFTA and other agreements that Viet Nam has concluded with the United Kingdom and the Eurasian Economic Union. Given that EFTA is one of the blocs with the highest per capita income in the world, and a hub for high-tech industries, pharmaceuticals, precision machinery and financial and insurance services, a concluded VEFTA would not only expand market space for Vietnamese goods but also create more favourable conditions for cooperation in investment, technology transfer, high-quality human resource training and the development of new value chains in green and digital sectors.
Expectations associated with VEFTA for Viet Nam therefore extend well beyond trade figures alone. For policymakers, VEFTA represents an opportunity to continue improving the market-economy institutional framework and increasing the compatibility of domestic legislation with high standards on transparency, fair competition, investment protection and intellectual property. Negotiations on chapters such as services, investment and TSD compel Viet Nam to examine its existing regulations more closely, identify areas that are not yet aligned or that hinder investment flows and innovation, and thereby design appropriate reform roadmaps.
For the business community, VEFTA – if concluded in the near future – will open up access to a “premium” market with strong purchasing power and stringent standards. This creates a requirement for early preparation, rather than waiting until the agreement enters into force. Goods exporters need to grasp information on expected tariff commitments, rules of origin, technical standards and requirements on environment, labour and traceability, so as to build their market strategies and invest in quality, packaging, brand storytelling and compliance management systems. Service providers, particularly in finance, logistics, information technology, healthcare, education and high-end tourism, will also have more opportunities to participate deeply in value chains that EFTA investors and partners are interested in.
Another important aspect is that VEFTA can provide additional “leverage” for Viet Nam’s green and digital transitions. EFTA is home to many of the world’s leading groups in environmental technology, renewable energy, digital technologies and life sciences. If Viet Nam can effectively utilise the investment, services and TSD chapters, it can attract more capital and technology in support of its sustainable development objectives, from clean energy infrastructure and smart cities to high-tech agriculture and the circular economy. These are precisely the areas where Viet Nam urgently needs resources in order to deliver on its commitments to emissions reduction, carbon neutrality and enhanced climate resilience.
In this context, the greatest expectation for Viet Nam lies in its ability to “turn negotiating opportunities into domestic capacities”. This means that, in parallel with pushing forward negotiating rounds at the international table, Viet Nam must proactively build its internal strength: improving the legal framework, upgrading human capital, supporting small and medium-sized enterprises to join supply chains and developing national communication and branding strategies aligned with the sustainability values that the EFTA market attaches importance to.
The 17th round of negotiations in Geneva is therefore not merely a technical milestone in the negotiating schedule, but also a signal that a clearer “strategic window” is opening. How far Viet Nam can seize the opportunities from VEFTA will depend greatly on the readiness of its policy system and business community in the coming months and years – a period regarded as decisive for moving from the status of a “potential partner” to that of a “value partner” on the economic cooperation map with EFTA.
Việt Thành
