Việt Nam’s trade surplus with EU expands amid economic headwinds

Việt Nam’s trade surplus with EU expands amid economic headwinds

Việt Nam’s trade with the European Union (EU) remained resilient in the first five months of 2026, with exports posting robust double-digit growth and the country’s trade surplus with the bloc climbing 11.3 per cent year-on-year to US$18.1 billion.

Production of electronic components at DBG Technology Vietnam Co Ltd in Yên Bình Industrial Park, Thái Nguyên Province. — VNA/VNS Photo Hoàng Nguyên

Việt Nam’s trade with the European Union (EU) remained resilient in the first five months of 2026, with exports posting robust double-digit growth and the country’s trade surplus with the bloc climbing 11.3 per cent year-on-year to US$18.1 billion, despite slowing economic activity in Europe.

Trade between Việt Nam and the EU maintained momentum during the January-May period, supported by the EU-Việt Nam Free Trade Agreement (EVFTA) and sustained demand for key Vietnamese exports, even as the EU grappled with inflationary pressures and sluggish consumer spending.

Latest data from the Customs Department showed bilateral trade reaching $36 billion during the five-month period.

Exports to the EU rose 16.9 per cent from a year earlier to $26 billion, while imports increased 21.6 per cent to nearly $8 billion, leaving Việt Nam with a trade surplus of about $18.1 billion.

Strong performances were recorded across major export categories, including electronics, garments and textiles, wood products and agricultural commodities. Imports from the EU were concentrated on machinery, equipment and production technologies.

The bloc’s growing contribution also helped lift Việt Nam’s total trade turnover to more than $445 billion in the first five months, up 25 per cent year-on-year.

Việt Nam is currently the EU’s largest trading partner in ASEAN.

In 2025, bilateral trade approached $74 billion, with Vietnamese exports to the bloc reaching $56.2 billion, up 8.6 per cent, while imports rose 5.4 per cent to $17.6 billion. The figures translated into a record trade surplus of $38.6 billion.

Last year, computers, electronic products and components led export earnings at $10.89 billion, followed by machinery, equipment and spare parts at $7.42 billion, and phones and components at $6.9 billion, all posting growth from the previous year.

The Ministry of Industry and Trade attributed the strong performance largely to the EVFTA, which has significantly expanded market access for Vietnamese goods in the EU’s nearly 500-million-consumer market.

Rising exports and a steadily widening trade surplus have further strengthened Việt Nam’s role in global supply chains.

Since the agreement took effect in August 2020, bilateral trade has surged.

Bilateral trade turnover increased from $49.7 billion in 2020 to $68.4 billion in 2024 before approaching $74 billion in 2025. Over the same period, Việt Nam’s exports to the EU grew from $35.1 billion to $56.2 billion, while its trade surplus nearly doubled from $20.5 billion to almost $39 billion.

The sustained growth highlights the Việt Nam – EU economic partnership as one of the country’s most stable and successful trade relationships.

European businesses increasingly regard Việt Nam as a strategic link in global supply chains thanks to its strong FDI attraction, diversified export markets and extensive network of free trade agreements.

Raising supplier standards

The steady rise in exports and trade surplus since the EVFTA entered into force reflects Vietnamese businesses’ growing ability to meet the EU’s stringent quality and regulatory requirements. Many products have effectively leveraged tariff preferences under the agreement to generate export revenues exceeding $1 billion, while local firms have deepened their integration into the supply chains of European multinational corporations.

At the same time, exporters face mounting pressure as the EU tightens rules on environmental protection, carbon emissions, product traceability and corporate responsibility.

Đậu Anh Tuấn, vice decretary-general and director of the Legal Department at the Vietnam Chamber of Commerce and Industry (VCCI), said globalisation continues to create opportunities, but businesses must also adapt to increasingly demanding standards on sustainability, transparency and accountability.

The EU currently accounts for around 13 per cent of Việt Nam’s total exports and is becoming an increasingly important destination as the country seeks to diversify markets amid growing global trade uncertainties.

According to the Ministry of Industry and Trade, the EU trade landscape is being reshaped by three major trends: US tariff policies, green transition and digital transformation. Together, these forces are redefining global supply chains, import regulations and supplier expectations.

To stay competitive, many textile and garment manufacturers are accelerating investments in green production and sustainable development.

Garco 10 Corporation, for example, is investing heavily in modern equipment, digitalisation and smart manufacturing lines at its new factory in Hưng Yên province.

More than VNĐ142 billion ($5.39 million) has been earmarked for equipment upgrades and digital transformation, alongside nearly VNĐ40 billion for construction and VNĐ29.5 billion for additional investment projects.

Trần Ngọc Quân, trade counsellor at the Vietnam Trade Office in Belgium and the EU, said Vietnamese enterprises must proactively align with the requirements of the European Green Deal while advancing circular economy models, sustainable production and responsible consumption to secure long-term growth in the European market. 

Bizhub