EVFTA deepens Vietnam-EU relations after six years

EVFTA deepens Vietnam-EU relations after six years

The EU-Vietnam Free Trade Agreement marks six years of implementation on August 1, delivering significant gains in bilateral trade and investment.

The EVFTA acts as a vital economic highway to boost trade between Vietnam and EU. In 2019, the Vietnam – EU two-way trade stood at $49.8 billion. This figure rose to $74 billion by the end of 2025.

In the first six months of 2026, two-way trade between Vietnam and the EU totalled $41.7 billion. Vietnam's exports to the EU reached $31.8 billion, while imports from the bloc stood at $9.9 billion.

After six years of the agreement, bilateral trade turnover between Vietnam and the EU has increased by 40 per cent, with growth around 10–15 per cent annually.

The EVFTA has also made it easier for European companies to do business in Vietnam. According to EuroCham's Business Confidence Index for the second quarter, nearly seven in 10 European businesses (68 per cent) are engaged in Vietnam–EU trade, either through direct imports, exports, or participation in regional supply chains.

Among businesses engaged in Vietnam–EU trade, half already benefit from EVFTA tariff preferences. For many, the impact is important: 32 per cent report that at least 20 per cent of their EU–Vietnam trade is covered, including 19 per cent where more than half is covered.

These findings indicate that EVFTA is already generating tangible commercial value, while highlighting opportunities to expand utilisation.

Agriculture and food value chain business records the highest overall benefit (77 per cent), while trade, logistics and consumer goods also gain strongly (62 per cent). Manufacturing and agriculture record the highest shares of businesses benefiting from EVFTA tariff preferences on more than 80 per cent of their EU– Vietnam trade (15 per cent each).

In addition, two-thirds of EVFTA beneficiaries report measurable cost savings from tariff preferences. For most, savings range between 5 per cent and 15 per cent, while 11 per cent achieve reductions exceeding 30 per cent, demonstrating the agreement's capacity to generate meaningful commercial value. These findings reinforce EVFTA's role in strengthening Vietnam's competitiveness as a manufacturing, sourcing, and trade hub for European businesses.

VIR