The E.U. is one of the most promising export markets globally, with a population of over 740 million and a gross domestic product (GDP) exceeding 18 trillion USD. It is Vietnam's third-largest export market, encompassing strong sectors such as footwear, textiles, agricultural products, and consumer electronics.
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A worker processes shrimp for export at Minh Phu Company in Ca Mau province. |
Over the past four years, Vietnam’s export to the EU is eclipsed the 200 billion USD mark, achieving an annual growth of 12–15%, according to the General Department of Vietnam Customs. Last year, Vietnam’s shipment to the bloc reached 52.1 billion USD, a 19.3% increase compared to the same period in 2023.
A survey by the European Chamber of Commerce in Vietnam (EuroCham) showed that the E.U. - Vietnam Free Trade Agreement (EVFTA) has significantly boosted Vietnam's exports to the E.U., from 35 billion EUR (36.9 billion USD) in 2019 to over 51 billion EUR in 2024. Sectors such as electronics, textiles, footwear, agriculture, and seafood have particularly benefitted from the phased tariff reductions under the agreement.
Since 2021, the import turnover of Vietnamese goods in most E.U. countries has increased. Deputy Director of the Agency of Foreign Trade Tran Thanh Hai noted that major E.U. export markets have surpassed 3 billion USD in turnover.
Despite these achievements, the E.U. market still has vast untapped potential as Vietnamese goods hold a relatively small market share. However, senior economist Nguyen Thanh Hung expressed his concerns about new E.U. regulations that could significantly impact Vietnam's exports.
For instance, on May 13, 2024, the E.U. introduced new import procedures. Under the new regulations which took effective on June 3, all imported goods must be declared through the Import Control System 2 (ICS2), which was designed to improve security of the E.U.'s common market and its citizens.
If parties are unprepared and fail to provide the data required by ICS2, goods will be held at E.U. borders and will not receive customs clearance, Hung said.
Promoting sustainable exports
One of the most discussed new regulations affecting exports to the E.U. is the Carbon Border Adjustment Mechanism (CBAM), which the E.U. will pilot during a transition phase starting October 1, 2024, and fully implement in 2026. The E.U. will impose a carbon tax on all goods imported into its internal market based on the greenhouse gas emissions intensity of the production process in the host country.
To export to the E.U. and Nordic countries, businesses must understand these regulations and market trends to develop new approaches. Vietnamese enterprises need to transition their production models to align with the E.U.’s new requirements, Hung emphasized.
Dinh Sy Minh Lang, Department of European-American Markets under the Ministry of Industry and Trade, noted that E.U. retailers prioritize sustainable, eco-friendly, and fair-trade products, urging Vietnamese businesses to expand exports via official channels.
Although formal exports involve complex procedures and multiple taxes and fees, they ensure strict quality control and enhance the credibility of products with consumers.
To succeed in exports via official channels, businesses need to identify target markets, research standards and regulations, and assess their own capabilities to develop effective strategies, he suggested.
Companies must produce products to international standards, build and maintain quality management systems, enhance employee skills, upgrade technology, and focus on producing high-quality goods, Lang stated.
Source: VNA