EVFTA Delivers Tangible Gains for Vietnam-EU Trade After Six Years

Six years after its entry into force, the EU-Vietnam Free Trade Agreement (EVFTA) has delivered tangible gains for trade between the two sides. Bruno Jaspaert, Chairman of the European Chamber of Commerce (EuroCham), noted that nearly half of all EU-Vietnam trade over the past three decades has taken place under the EVFTA, underscoring the rapid acceleration of economic integration once market access barriers were removed. The EVFTA has played a crucial role in strengthening the foothold of Vietnamese exports in the EU market. The agreement has benefited Vietnamese exporting companies by enhancing their competitiveness within the EU. However, it has also been pointed out that to fully harness its potential, the Vietnamese business community needs further upgrades, including structural reforms, quality improvements, and adaptation to international standards. Under its one-party system, Vietnam prioritizes economic growth, and free trade agreements like the EVFTA serve as important strategic tools for promoting its export-driven economic model. Strengthening trade relations with the EU is particularly noteworthy as part of its diversification strategy to reduce economic reliance on China. The EVFTA is expected to promote the globalization of the Vietnamese economy and attract foreign direct investment (FDI). Moving forward, strengthening supply chains and investing in technological innovation will be key for Vietnamese businesses to better leverage the benefits of the EVFTA.