Vietnam–EU trade hits $300 billion five years after EVFTA

THE HANOI TIMES — As of May 2025, trade between Vietnam and the European Union (EU) reached US$298 billion, since the EU–Vietnam Free Trade Agreement (EVFTA) took effect on August 1, 2020.

This figure accounts for nearly 40% of the total accumulated trade over the past 30 years.

EVFTA has helped Vietnam become the EU’s largest trading partner in ASEAN and 16th globally. Key exports to the union include electronics, textiles, furniture, and farm products, while Vietnam imports machinery, green tech, pharmaceuticals, and transport equipment from Europe.

The agreement eliminated over 70% of tariffs upon enforcement, with a roadmap to remove 99%. It also improves market access, legal transparency, and IP protection.

However, challenges persist, particularly rules of origin. Many Vietnamese firms still rely on imported materials, making it harder to meet origin standards.

To address this, Vietnam began centralizing the certificate of origin process in May 2025 and is building a national digital platform, though processing times still vary widely.

Since late 2024, structural reforms have included streamlining government agencies, introducing business ID via VNeID, and launching the first national FTA Index to guide policy and improve execution.

In addition, EuroCham continues to engage in dialogue with the Vietnamese Government and organize sector-specific forums to enhance cooperation.

Amid rising global protectionism, EuroCham Chairman Bruno Jaspaert called EVFTA “a symbol of trust and cooperation.”

EU Ambassador Julien Guerrier also shared his remarks: “Long-term cooperation between the EU and Vietnam is essential to achieving our shared goals of green and sustainable development.”