Access to higher-value export markets

According to the Vietnam Association of Seafood Exporters and Producers (VASEP), the completion of FTA negotiations between Vietnam and the EFTA, comprising Switzerland, Norway, Iceland and Liechtenstein, is a positive development amid global trade uncertainty, rising protectionism and increasingly stringent import requirements in major seafood markets.

For Vietnam's seafood industry, the agreement offers an opportunity to diversify export markets and expand into high-purchasing-power markets, in line with Vietnam's strategy of increasing export value while reducing reliance on traditional markets.

Seafood exports to EFTA are still modest and are concentrated mainly in Switzerland and Norway. Exports to Switzerland reached US$34.123 million in 2025, up 15% from 2024, while exports to Norway rose 95% to US$18.479 million.

Combined exports to the two markets totalled about US$52.6 million, accounting for only a small share of Vietnam's seafood exports but highlighting the growth potential of higher-value market segments.

During the five month period of 2026, seafood exports to Switzerland fell 15% year-on-year to US$13.437 million, making up about 0.3% of Vietnam's total seafood exports. Exports in May alone stood at US$3.5 million, down 13.5%.

By contrast, exports to Norway increased 36.7% to US$7.027 million during the reviewed period, while May exports rose 11.5% to US$1.643 million. The figures suggest that although EFTA is not yet a major export destination, it continues to offer promising growth opportunities, particularly in Norway.

According to VASEP, one of the agreement's immediate benefits is greater export market diversification. While EFTA is not a large market in terms of population, its high purchasing power and steady demand for premium food products make it an attractive destination for Vietnamese seafood at a time when exporters face continued tariff risks, trade remedies and Marine Mammal Protection Act (MMPA) requirements in the US, as well as increasingly stringent IUU, traceability, residue and sustainability requirements in the European Union.

However, EFTA is not a market where Vietnamese exporters can compete primarily on price. The greatest opportunities lie in value-added and premium products, including processed shrimp, high-quality frozen shrimp, pangasius fillets and portion-cut products, processed pangasius, tuna, squid and octopus, crab, shellfish and convenience products for the retail sector.

Once the agreement is signed, ratified and enters into force, tariff reductions or eliminations will further facilitate access for Vietnamese products to EFTA markets. However, tariff preferences will be effective only if exporters fully comply with rules of origin, certification requirements, food safety regulations and the technical standards of individual markets.

Businesses must meet standards and rules of origin to benefit from FTA

According to VASEP, the Vietnam-EFTA FTA will create new export opportunities while stepping up two-way cooperation.

Norway and Iceland have strengths in offshore aquaculture, fisheries, resource management, cold-chain technology, deep processing and logistics. The agreement therefore has the potential to expand cooperation in technology, raw material supply, investment, supply chain management and new product development. For processors with strong manufacturing capacity, high-quality raw materials from EFTA could also serve the domestic market, the HORECA sector, modern retail channels or re-export activities.

However, the challenges are also clear, beginning with compliance standards. Norway, Iceland and Liechtenstein are members of the European Economic Area (EEA) and follow EU standards closely, while Switzerland, although outside the EEA, also applies stringent requirements on food safety, traceability, environmental protection, labour and social responsibility.

Vietnamese exporters seeking to expand their market share in EFTA countries therefore need to strengthen compliance throughout the supply chain, from aquaculture areas, fishing vessels and raw material sources to processing plants, cold-chain systems, labelling and sustainability certification.

Another challenge is rules of origin. Many Vietnamese seafood products use imported raw materials or undergo multiple stages of processing. Exporters therefore need to carefully study tariff schedules, product-specific rules of origin under each HS code, cumulation provisions and origin certification procedures. Without fully meeting these requirements, tariff preferences are unlikely to translate into a real competitive advantage.

As tariffs are reduced, seafood products from EFTA, particularly salmon, mackerel, cod, whitefish and frozen seafood from Norway and Iceland, will also gain easier access to the Vietnamese market. This will increase competition in the premium segment, including restaurants, hotels, modern retail channels and convenience products. At the same time, it will encourage Vietnamese producers to improve product quality, invest in deeper processing, strengthen their brands and further standardise distribution systems.

Overall, the Vietnam-EFTA FTA marks an important step in the integration of Vietnam's seafood industry, but it will not create advantages automatically. The greatest opportunities will be for businesses that prepare early by meeting quality standards, certification requirements, traceability requirements, rules of origin, packaging and labelling requirements, while strengthening their ability to work with retailers, importers and foodservice operators in Switzerland, Norway and Iceland.

In the short term, the seafood industry should continue monitoring the signing, ratification and publication of the agreement's detailed commitments. Over the longer term, EFTA has the potential to become a high-value niche market, helping Vietnam's seafood industry increase export turnover, enhance product value, support sustainable development and solidify its position in the global seafood supply chain.

Source: VOV