5 years of implementing EVFTA: A driving force for sustainable trade between Vietnam and the EU

Businesses clearly benefit from EVFTA

A report by the European Chamber of Commerce in Vietnam (EuroCham) released on the occasion of the 5th anniversary of the EVFTA coming into effect shows that the EVFTA has actively contributed to promoting bilateral trade, facilitating institutional reform, and improving the standards and competitiveness of Vietnamese enterprises in the global supply chain.

Specifically, after 5 years of implementing the EVFTA, trade turnover between Vietnam and the EU has reached nearly 300 billion USD. This figure accounts for nearly 40% of the total cumulative trade turnover between the two sides since 1995 – a clear demonstration of the EVFTA’s catalytic role in expanding the market and deepening bilateral economic cooperation.

Processing and packaging coconuts for export. (Illustration photo: VNA)

According to EuroCham, Vietnam is currently the EU’s largest trading partner in ASEAN and the bloc’s 16th largest partner globally. Meanwhile, the EU is Vietnam’s third largest export market and fourth largest source of imports.

Vietnam's main exports to the EU include electronics, textiles, furniture and agricultural products; in the opposite direction are high-tech machinery, pharmaceuticals, means of transport and green technology.

Signed on June 30, 2019 and officially effective from August 1, 2020, EVFTA is one of the most comprehensive and ambitious free trade agreements the EU has ever signed with a developing country. The agreement has eliminated more than 70% of tariffs on many import and export goods between the two sides. The remaining tariffs of up to 99% will be gradually removed according to the roadmap in the coming years.

EuroCham's report said that within just five years since the EVFTA came into effect, many businesses, especially small and medium-sized enterprises, have effectively exploited tariff incentives.

The proportion of European businesses in Vietnam that consider tariff reductions as a key factor has jumped from 29% (Q2/2024) to 61% (Q2/2025). Some businesses have recorded a net profit increase of up to 25% thanks to the EVFTA; the average increase is 8.7%.

Report Business Confidence Index (BCI) A survey conducted by EuroCham in the second quarter of 2025 showed that 66% of businesses are actively trading between the EU and Vietnam; nearly 98.2% of businesses have a certain understanding of the EVFTA.

Half of businesses reported moderate to significant benefits, and this proportion is expected to continue to increase as tariff reduction commitments are fully implemented in the coming years.

The EVFTA is also considered a lever to help European businesses better access the Vietnamese market with a population of 100 million and an abundant workforce. The EuroCham report stated that in areas such as digital agriculture , renewable energy and digital transformation, EU expertise is an ideal complement to Vietnam's development strategy.

EuroCham Chairman Bruno Jaspaert commented: “In the context of global geopolitical and trade uncertainty, the EVFTA stands out as a symbol of trust and cooperation. The transparent provisions and shared commitments between Vietnam and the EU show that harmonized standards and open markets are the path to sustainable growth and long-term prosperity.”

The driving force behind reform

Appreciating the effectiveness of EVFTA, EuroCham also pointed out challenges in the implementation process, especially related to customs procedures and rules of origin - key factors for businesses to enjoy tax incentives.

According to a EuroCham survey, 37% of European businesses reported frequent discrepancies in customs valuations and inconsistencies between enforcement agencies, resulting in increased costs and reduced competitiveness.

In addition, the process of granting certificates of origin (C/O) still has many bottlenecks; while some businesses receive C/O within 24 hours, many others have to wait more than a week, affecting capital flow and delivery schedules.

In 2024 alone, according to data cited by EuroCham from Vietnamese authorities, more than 1.8 million preferential C/Os were granted, equivalent to an export value of over 100 billion USD - an increase of 18% in volume and 28% in value compared to 2023, accounting for about 28% of total export turnover to markets with FTA agreements.

Notably, exports to the EU in the same year reached 51.7 billion USD - the highest level ever, growing 18.4% over the same period last year, clearly reflecting the trend of effectively utilizing the EVFTA in bilateral trade.

Not only does it reduce tariffs, the EVFTA also expands market access, enhances intellectual property protection and promotes transparency in the regulatory system, in order to create more favorable conditions for businesses on both sides to make the most of trade opportunities.

EuroCham assesses that EVFTA is not only a tool to promote trade but also a catalyst for reform institutionalization and modernization of the Vietnamese economy. The European business community recognized the Vietnamese Government's efforts in streamlining the administrative apparatus, implementing electronic identification of enterprises on the VNeID application, as well as publishing the National FTA Index, marking outstanding steps in the digital transformation roadmap and building effective evidence-based policies.

The digitalization of the C/O issuance process from May 2025 and the dialogues between EuroCham and the authorities are also considered as a testament to Vietnam's spirit of open cooperation and commitment to reform.

“We see a positive in a Government that is willing to listen, proactively accompany and genuinely promote reforms. Current economic indicators show that Vietnam’s ‘era of rising up’ has truly begun – a period of strong growth and development as expected by General Secretary To Lam. Now, more than ever, is the time to accelerate the implementation of committed reforms and turn dialogue into concrete action,” shared the Chairman of EuroCham.

EuroCham Chairman, Mr. Bruno Jaspaert. (Photo: EuroCham)

"We see a positive thing in a Government that is willing to listen, proactively accompany and genuinely promote reforms. Current economic indicators show that Vietnam's 'era of rising up' has truly begun."

On the occasion of the 5th anniversary of EVFTA, EuroCham continue to call on EU member states to promptly complete the ratification of the EU-Vietnam Investment Protection Agreement (EVIPA), thereby establishing a solid legal framework for high-quality and long-term investment flows.

“The EU remains one of Vietnam’s most stable and sustainable economic partners. If we continue to work together, remove barriers and focus on effective implementation, the EVFTA will continue to demonstrate to the world that bilateral trade agreements can create real value and long-term benefits for both sides. EuroCham and the European business community are committed to standing side by side with Vietnam during this landmark period. We consider Vietnam our second home and will accompany Vietnam in the process of realizing its long-term growth goals,” Mr. Jaspaert emphasized.

EuroCham also affirmed that upgrading the EU-Vietnam relationship to a Comprehensive Strategic Partnership would be the next natural step between two partners increasingly aligned in key areas such as trade, sustainable development and global governance.

EU Ambassador to Vietnam, Mr. Julien Guerrier emphasized: “After 5 years, the EVFTA has proven to be an effective cooperation framework. The agreement has strengthened trust, promoted trade and brought practical benefits to both sides. In the context of the constantly changing global trade environment, sustainable cooperation between the EU and Vietnam is more necessary than ever. The EU remains committed to accompanying Vietnam on the journey towards a green, sustainable and prosperous future.”

Source: https://baoquangninh.vn/5-nam-thuc-thi-evfta-dong-luc-thuc-day-thuong-mai-ben-vung-giua-viet-nam-va-eu-3369688.html