Economic impacts and standard harmonization
Signed on June 30, 2019, and officially effective from August 1, 2020, the EVFTA is one of the most comprehensive and ambitious FTAs the E.U. has ever signed with a developing country. The trade deal has eliminated over 70% of tariffs on imports and exports between the two sides, with nearly 99% of remaining tariffs set to be gradually removed in the coming years.
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Laborers are working at Thai Nguyen Garment Company |
Beyond tariff reductions, the EVFTA has enhanced market access, strengthened intellectual property protection, and promoted regulatory transparency, making it easier for businesses of the two sides to fully capitalize on trade opportunities. In addition to its direct economic impact, the EVFTA has also catalyze long-term alignment in values and standards between Vietnam and the E.U. - an element that Chairman of EuroCham Bruno Jaspaert emphasized as key to the agreement’s success.
Amid rising geopolitical tensions and a growing wave of unilateral tariff measures, the EVFTA stands out as a symbol of trust and cooperative spirit. August 1 of this year not only marks the agreement’s fifth anniversary in effect, but also represents a pivotal moment in the global trade situation.
Jaspaert stressed that as the world grapples with the complexities of new trade agreements and hesitates in response to reciprocal tariff policies from the U.S., the EVFTA offers clarity and stability as its transparent provisions and mutual commitments between Vietnam and the E.U. reflect a shared belief that harmonized standards and open markets are the path to sustainable growth and long-term prosperity.
According to preliminary data from the National Statistics Office of Vietnam, in less than five years, Vietnam–E.U. bilateral trade has reached 298 billion USD, accounting for nearly 40% of the total accumulated trade value between the two sides since they began economic cooperation in 1995, a clear testament to the EVFTA’s catalytic role in expanding market access and deepening bilateral economic ties.
Jaspaert added that the E.U. remains one of Vietnam’s most stable and sustainable economic partners. If both parties eliminate barriers and prioritize effective implementation, the EVFTA will show the world that bilateral FTAs can create the real value and long-term benefits for the parties involved.
EuroCham and the European business community are committed to working closely with Vietnam during this pivotal period, considering Vietnam their second home, and are dedicated to supporting the country in realizing its long-term growth goals.
Seizing opportunities, overcoming barriers
Beyond tariff incentives, the EVFTA serves as a key for European businesses to better access Vietnam’s rapidly growing domestic market, from favorable FDI opportunities to cooperation in public-private partnership (PPP) projects. With a population of 100 million and a workforce exceeding 55 million, Vietnam is gradually emerging as a strategic ecosystem for European enterprises to integrate more deeply into new supply chains and expand their long-term market.
In areas such as sustainable agriculture, digital transformation, and green energy, Europe’s expertise complements Vietnam’s resource base and development priorities. Notably, European innovations in digital agriculture and green technologies have contributed to improving productivity, quality, and traceability in key sectors like agriculture, food, and aquaculture, where Vietnam is already a major supplier to the European market.
The EVFTA is also supporting Vietnam’s efforts to position itself as a reliable manufacturing and export hub amid the increasing fragmentation of global supply chains.
Five years on, the EVFTA has proven to be an effective framework for cooperation, helping strengthen trust, boost trade, and deliver tangible benefits for both sides, Guerrier said, stressing that the E.U. remains committed to partnering with Vietnam on its journey toward a green and sustainable future.
According to the World Trade Organization (WTO), there are currently 328 FTAs in effect worldwide, a sharp increase from just 98 in 2000. Vietnam has inked 17 FTAs, underscoring its central role in regional and global trade networks.
Source: VNA