EVFTA after 5 years: Vietnam - EU trade nearly 300 billion USD
EVFTA – Leverage for market expansion and standard integration
According to the European Chamber of Commerce in Vietnam (EuroCham): The Free Trade Agreement between Vietnam and the European Union (EVFTA), which took effect on August 1, 2020, is one of the most comprehensive agreements the EU has ever signed with a developing country. After 5 years of implementation, EVFTA has brought the total bilateral trade turnover to 298 billion USD by May 2025, equivalent to nearly 40% of the total accumulated trade value between the two sides over the past 30 years.
At the same time, the EVFTA also helps Vietnam become the EU’s largest trading partner in ASEAN and rank 16th globally. Vietnam’s main exports to the EU include electronics, textiles, furniture and agricultural products. In turn, the EU is Vietnam’s third largest export market and fourth largest source of imports, with strategic products such as machinery, green technology, pharmaceuticals and vehicles.
Not only will it eliminate more than 70% of tariffs immediately upon entry into force, the EVFTA also commits to eliminating 99% of tariffs over the long term. In addition, the agreement will support businesses in expanding their markets, enhancing intellectual property protection, improving transparency in legal regulations, and facilitating two-way trade.
According to EuroCham Chairman Bruno Jaspaert, in the context of many unilateral trade barriers and rising protectionism, the EVFTA has become a symbol of the spirit of cooperation and trust between economies . In addition, he emphasized that transparent standards, open markets and legal harmonization are fundamental factors to promote sustainable development.
EuroCham’s Business Confidence Index (BCI) for Q2 2025 shows that 66% of businesses are actively trading within the EVFTA framework, with nearly 100% of businesses having some understanding of the agreement. Notably, 50% of these businesses recorded moderate to significant benefits, with an average net profit increase of 8.7%, with some businesses reaching 25%.
However, businesses expect not only tariff incentives but also benefits from access to Vietnam’s fast-growing domestic market – especially in areas such as sustainable agriculture , digital transformation and renewable energy.
EuroCham's Business Confidence Index (BCI) for Q2/2025 shows that 66% of businesses are actively trading within the EVFTA framework, with nearly 100% of businesses having some understanding of the agreement.
Effective implementation and reform: Key to promoting EVFTA
In addition, a major challenge in the implementation of EVFTA is the provisions on Rules of Origin – a mandatory factor to enjoy tariff preferences. Many Vietnamese enterprises still depend on imported raw materials from third countries, making it difficult to prove valid origin.
Although the EVFTA allows for the aggregation of origins from several countries, the documentation process remains complicated. About 37% of businesses said they often encountered discrepancies in customs valuation, increasing costs and reducing competitiveness. On the other hand, the lack of consensus among authorities is also a significant barrier.
Mr. Jean-Jacques Bouflet – Vice Chairman of EuroCham, who was a negotiator of EVFTA, said that the provisions of the agreement are designed to optimize efficiency and inclusiveness. However, implementation is a long process, requiring continuous adjustment and a business-centric mindset.
Certificates of origin (C/O) are now considered an important tool for businesses to take advantage of tax incentives. In 2024, Vietnam issued over 1.8 million preferential C/Os with a total export value exceeding 100 billion USD. Exports to the EU alone reached an all-time high of 51.7 billion USD, up 18.4% year-on-year.
Since May 2025, Vietnam has begun to centralize the C/O issuance process and is aiming to build a national digital platform. However, there is still a large difference in processing time, from less than 24 hours to more than a week. Therefore, EuroCham recommends promoting electronic registration and allowing businesses to self-certify origin to save costs, time and increase trade efficiency.
Since the end of 2024, Vietnam has implemented many strong structural reforms: merging ministries, branches and localities; streamlining 30% of the administrative apparatus; applying VNeID for business identification and publishing the first FTA Index in the country in 2025.
Accordingly, the FTA Index, developed by the Ministry of Industry and Trade , helps authorities at all levels effectively orient economic integration, improve transparency and implementation capacity. This is the foundation for formulating policies for sustainable export development and attracting long-term investment.
"We see a Government ready for reform, dialogue and concrete action. Economic indicators show that Vietnam is entering a period of strong growth, as expected by senior leaders," said EuroCham Chairman Bruno Jaspaert.
EuroCham will continue to maintain dialogue with the Vietnamese Government, organize specialized seminars, dialogue with the Prime Minister and bring the reform message to EU agencies in Brussels in the first quarter of 2025.
The EU remains a stable and sustainable economic partner of Vietnam. EuroCham is committed to continuing to accompany Vietnam in the process of realizing its growth and integration goals. According to EuroCham, reforming customs procedures, simplifying administrative procedures and improving policy implementation efficiency will be inevitable steps for the EVFTA to continue to maximize its potential.
In the context of many international changes, EVFTA is one of 17 FTAs that Vietnam has signed, contributing to strengthening Vietnam's central role in the global trade network. At the same time, the Investment Protection Agreement (EVIPA) between the EU and Vietnam is still awaiting ratification by a number of EU member states.
Once in effect, the EVIPA will create a legal framework to protect and promote high-quality investment flows from Europe into Vietnam. Furthermore, the possibility of upgrading relations to a "Comprehensive Strategic Partnership" between the EU and Vietnam is expected to be promoted in the coming time.
EU Ambassador Julien Guerrier affirmed: After 5 years, EVFTA has proven to be effective in promoting trade, building trust and creating practical benefits for both sides. In addition, Mr. Julien Guerrier emphasized the importance of long-term cooperation between the EU and Vietnam to achieve the goal of green and sustainable development.
EuroCham’s White Paper 2025 also highlighted that sustainable cooperation requires institutional reform, especially in administrative simplification, improving consistency in the legal system and enhancing enforcement. Therefore, the EVFTA is not only a trade agreement, but also a catalyst for long-term reform.
Mr. Minh
Source: https://baochinhphu.vn/evfta-sau-5-nam-viet-nam-eu-giao-thuong-gan-300-ty-usd-10225080113302367.htm
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