Vietnamese Firms Explore French Market Leveraging EVFTA, Experts Advise Risk Management

Leveraging the EU-Vietnam Free Trade Agreement (EVFTA) and enhanced Vietnam-France relations, numerous Vietnamese entrepreneurs are actively seeking opportunities to expand their businesses in the French market. This agreement is facilitating greater access for Vietnamese products into the European market by reducing trade barriers between the two nations, thereby fostering new business developments, particularly in the manufacturing and agricultural sectors. However, fluctuations in international markets continue to exert a direct influence on the Vietnamese economy. For instance, coffee prices on international exchanges have unexpectedly surged significantly, even amidst the peak coffee harvesting season in Brazil. This is attributed to factors such as adverse weather conditions and supply dynamics in key producing countries. While this presents a potential revenue opportunity for Vietnamese coffee exporters, it also carries the risk of price volatility. Domestically, businesses are navigating a complex landscape. In the northern province of Bac Ninh, despite a reduction in lychee output in 2026 due to unfavorable weather, the region still generated over VND 8.6 trillion (approximately USD 330 million). This highlights the adaptability of local production. Conversely, some companies are grappling with challenges such as deteriorating cash flow and delays in debt recovery, with small and medium-sized enterprises (SMEs) facing particularly stringent conditions. For example, a business owner in Tay Ninh province has been subjected to persistent debt collection calls from individuals claiming to represent a financial services company. In the stock market, investors are also facing uncertainty. Following adverse news, significant stock price declines prompt investors to decide between cutting losses or waiting for a recovery. Experts emphasize the importance of assessing whether a "critical event" fundamentally alters a company's value, rather than reacting solely to short-term market swings. For securities firms, securing market share on the Ho Chi Minh Stock Exchange (HoSE), which accounts for approximately 95% of the total listed market capitalization, remains a crucial objective. Recent data indicates a decline in the US Dollar Index (DXY), which measures the dollar's strength against six major currencies, to 100.88 points. This development is seen as supportive of a recovery in gold prices, driven by expectations of moderating inflation and the Federal Reserve maintaining its interest rates until the end of the year. In the real estate sector, Ho Chi Minh City's office market is undergoing a fierce selection process, with over half of the existing office spaces at risk of being left behind if they do not undergo significant "green overhauls." HDBank has launched three simultaneous preferential programs for corporate clients in the transportation and logistics sectors, as well as for agricultural, forestry, and fishery businesses, aiming to support economic activities. While Vietnam expands its access to European markets through the EVFTA, the nation is also tasked with responding to international economic fluctuations and domestic structural challenges. Businesses are urged to implement robust risk management strategies and build sustainable growth plans.