EVFTA Bolsters Vietnamese Exports in EU Market Amid Growth Ambitions

Five years after the entry into force of the EU-Vietnam Free Trade Agreement (EVFTA) on August 1, 2020, Vietnam's export foothold in the European Union (EU) market has been further strengthened. In the first nine months of 2025, bilateral trade turnover approached $55 billion, with exports reaching nearly $41 billion, a 9.3% increase year-on-year, while imports stood at $13 billion, up 4.3%. Czech Minister of Industry and Trade Lukáš Vlček praised the EVFTA as a pillar of Vietnam's open-door policy and sustainable development strategy. The agreement plays a crucial role in enhancing Vietnam's international competitiveness amidst intensifying geo-economic competition and complex supply chain shifts. Vietnam's commitment to achieving net-zero emissions by 2050 positions hydrogen, particularly green hydrogen, as a strategic solution for decarbonizing hard-to-electrify sectors such as heavy industry, long-distance transport, shipping, and aviation. Furthermore, to achieve its high growth targets by 2045, Vietnam is advancing financial market reforms. These include strengthening links between banking, capital, and insurance sectors, integrating with regional and global markets, and enhancing the mobilization and allocation of domestic and foreign capital. Economists advocate for a shift from achieving single-year double-digit growth to creating conditions for sustained high growth throughout the 2026-2030 period and beyond. The promotion of the digital economy is also progressing, with TikTok Vietnam collaborating to enhance the rural economy through e-commerce. Meanwhile, China has become the main growth engine for Vietnam's shrimp exports, offsetting weaker sales to the US. This move by exporters navigates trade uncertainty, high shipping costs, and tougher market requirements. Under its one-party system, Vietnam prioritizes economic growth and aims to further develop its export-led economy by maximizing the benefits of FTAs like the EVFTA. While economic ties with China remain strong, Vietnam is also diversifying its trade partners. Domestically, initiatives to modernize the economic structure are underway across various regions, including the restructuring and digitalization of state-owned enterprises.