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European Union

EVFTA Celebrates Five Years of Boosting Vietnam-EU Trade

Strategic Insights

— 2 min read

The EU-Vietnam Free Trade Agreement (EVFTA) has significantly grown trade between Vietnam and the European Union over the past five years, since coming into effect on August 1, 2020. The agreement's elimination of 70% of tariffs and gradual phasing out of the remaining 99% have raised standards for the environment and labor market. Statistics from the Ministry of Industry and Trade show that trade between Vietnam and the EU rose from $55.4 billion in 2020 to nearly $70 billion in late 2024, with Vietnam's export turnover to the EU estimated at $270 billion over the last five years.

Key Takeaways:

  • The EVFTA has positively contributed to improving bilateral trade, enhancing institutional reform, and raising Vietnamese business standards and competitiveness, according to a report by the European Chamber of Commerce in Vietnam (EuroCham).
  • The agreement has created opportunities for Vietnamese businesses to raise their product standards and internal capacity, enhancing their competitiveness in other demanding markets.
  • The Ministry of Industry and Trade has worked effectively with the EU and the business community to resolve institutional bottlenecks and eliminate trade barriers.
  • Vietnam's position in global supply chains has been elevated, with investment in high-tech, renewable energy, pharmaceuticals, and logistics reaching $35 billion as of mid-2025.
  • The EVFTA has driven reforms for both sides, fostering strategic dialogue between the EU and Vietnam on sustainable development and green growth.
  • Tariff reductions, dialogue, and non-trade barriers have been key aspects of the EVFTA, driving institutional reforms and regulatory simplification.
  • The agreement has pushed Vietnamese businesses to adopt greener and more sustainable practices, with the Ministry of Industry and Trade developing the CBAM Portal to help businesses comply with EU regulations.

Statistics:

  • Trade between Vietnam and the EU rose from $55.4 billion in 2020 to nearly $70 billion in late 2024. (Source: Ministry of Industry and Trade)
  • Vietnam's export turnover to the EU over the last five years was estimated at $270 billion, making Vietnam one of the EU's top trading partners in ASEAN and its 16th-largest global trading partner. (Source: Ministry of Industry and Trade)
  • 66% of businesses are actively trading with Vietnam, and 98.2% are familiar with the EVFTA, according to the EuroCham's Business Confidence Index (BCI) for Q2/2025.
  • $35 billion of registered FDI has been attracted to Vietnam as of mid-2025, driven by the EVFTA.
  • Vietnam's position in global supply chains has been elevated, driven by the EVFTA.

Sources:

  • Ministry of Industry and Trade
  • European Chamber of Commerce in Vietnam (EuroCham)
  • European Institute for Asian Studies (EIAS)
  • European Parliament's International Trade Committee
  • European Union
  • Vietnam News Agency (VOV5)

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