Milestone in EU-Việt Nam Trade Relations
Five years after the EU-Việt Nam Free Trade Agreement (EVFTA) officially came into force, two-way trade between Việt Nam and the EU has surged to a remarkable milestone of nearly $300 billion. This significant achievement has firmly established Việt Nam as the EU’s leading trading partner within the ASEAN bloc and its 16th largest globally. In a joint statement, the European Chamber of Commerce in Việt Nam (EuroCham) and the Government of Việt Nam proudly highlighted the EVFTA as a testament to the power of rules-based cooperation rooted in shared values, sustainability, and strategic alignment, especially in an era of rising global tensions and increasing trade fragmentation. As one of the EU’s most ambitious trade agreements with a developing nation, the EVFTA has already eliminated over 70 percent of tariffs on a wide variety of goods, with the agreement targeting a further reduction to 99 percent in the coming years. This bold move has also improved market access, strengthened intellectual property protections, and enhanced regulatory transparency, setting a new standard for international trade.
Unprecedented Growth and Market Impact
The impact of the EVFTA is powerfully demonstrated by recent trade data, which shows unprecedented growth since the agreement’s implementation. Preliminary figures from Việt Nam’s National Statistics Office indicate that the $298 billion in trade recorded between August 2020 and May 2025 alone accounts for a staggering 40 percent of the cumulative trade recorded over the past three decades. This robust growth is a clear indicator of the EVFTA’s transformative effect on both economies. The agreement has opened significant doors for a wide range of Vietnamese exports, from electronics and textiles to agri-food products, successfully making the EU Việt Nam’s third-largest export destination. In a powerful reciprocal relationship, the EU, now the fourth-largest source of imports for Việt Nam, supplies crucial high-tech machinery, pharmaceuticals, and green technology, which are vital for the country’s continued industrial and economic development. This dynamic exchange underscores a mutually beneficial partnership that is driving significant economic expansion.
Addressing Challenges for Future Cooperation
While the benefits of the EVFTA are undeniable, several significant challenges persist, preventing the agreement from reaching its full potential. According to a recent EuroCham Business Confidence Index (BCI) survey, a substantial 66 percent of businesses are actively involved in EU-Việt Nam trade, yet nearly 37 percent reported encountering issues with customs valuation discrepancies. Other challenges cited by businesses include unclear regulations, inconsistent enforcement of existing rules, and a persistent lack of alignment between EU and Vietnamese authorities. These frictions, if left unaddressed, could limit the long-term effectiveness of the agreement. However, despite these ongoing issues, the EVFTA has successfully served as a catalyst for broader economic reforms, market expansion, and long-term resilience, reinforcing its role as a powerful driver for continued economic cooperation between the two regions. The agreement’s success to date provides a strong foundation for both sides to work together to overcome these remaining hurdles.
