On August 1, 2020, the EU-Vietnam Free Trade Agreement (EVFTA) officially came into effect, marking a promising new chapter in the economic relationship between the two parties. Five years later, the benefits of the EVFTA are no longer just potential but have become tangible results, creating strong growth momentum for both Vietnamese businesses and their European partners.
Impressive Numbers: The “Sweet Fruits” of the EVFTA
Statistics from the Ministry of Industry and Trade clearly show the undeniably positive impact of the EVFTA on the trade balance.
Total two-way trade turnover: Increased from $55.4 billion (2020) to $68.3 billion in 2024.
Vietnam’s export turnover to the EU: Grew spectacularly from $40.1 billion (2020) to $51.6 billion (2024), equivalent to a 28.6% increase.
Trade surplus: Vietnam’s trade surplus with the EU rose from $24.8 billion (2020) to $34.9 billion.
Mr. Ngo Chung Khanh, Deputy Director-General of the Multilateral Trade Policy Department (Ministry of Industry and Trade), affirmed that Vietnam’s key export sectors such as agriculture, seafood, textiles, and footwear have been very effectively leveraging the incentives from the agreement.
The “Golden Key”: Comprehensive Tariff Elimination Commitments
The core appeal of the EVFTA lies in its comprehensive roadmap for reducing and eliminating tariff barriers.
Immediately upon entry into force: The EU eliminated tariffs on 85.6% of tariff lines, corresponding to 70.3% of Vietnam’s export turnover.
7-year roadmap: The EU is committed to eliminating 99.2% of tariff lines, equivalent to 99.7% of Vietnam’s export turnover.
The remaining 0.3%: For sensitive products (such as rice, sweet corn, garlic, etc.), the EU grants Vietnam Tariff Rate Quotas (TRQs) with an in-quota tariff rate of 0%.
On its side, Vietnam has also committed to eliminating most of its export duties on goods shipped to the EU, opening up opportunities for mutual development for businesses on both sides.
A Two-Way Street: European Businesses Also Reaping Benefits and Gaining Confidence
The benefits of the EVFTA flow in both directions. European enterprises are also making excellent use of the opportunities in the Vietnamese market.
Tariff Incentives as a Top Benefit
The Q2 2025 Business Confidence Index (BCI) report from EuroCham reveals a remarkable shift:
The percentage of EU businesses identifying tariff incentives as the most significant benefit of the EVFTA surged from 29% (Q2/2024) to 61% (Q2/2025).
Notably, some businesses reported an average increase in net profit of 8.7% thanks to the EVFTA, with some individual companies reporting figures as high as 25%. This demonstrates that both Large-Scale Enterprises (LSEs) and Small and Medium-sized Enterprises (SMEs) from Europe are benefiting.
Beyond Tariffs: Access to a Strategic Market
The EVFTA is more than just a story of tariff reduction. The agreement also serves as a bridge, helping EU businesses to:
Access a market of 100 million people: Especially Vietnam’s rapidly growing middle class.
Seize FDI opportunities: Enjoying many attractive preferential policies.
Engage in Public-Private Partnerships (PPP): Participating in infrastructure development projects.
With a workforce of over 55 million people, Vietnam is becoming a strategic ecosystem, helping European businesses integrate more deeply into global supply chains.
Positioning Vietnam in the Global Supply Chain
In a global context of constant change, the EVFTA is helping Vietnam solidify its position as a reliable manufacturing and export hub.
This cooperation extends beyond trade. European expertise in fields like sustainable agriculture, digital transformation, and green energy is an ideal complement to Vietnam’s strengths and development priorities. For example, green technology from Europe is helping to improve the quality and traceability of Vietnamese agricultural and seafood products—key exports to the EU market.
Currently, the Ministry of Industry and Trade is actively developing a “Project on Building an Ecosystem for FTA Utilization” to connect and support Vietnamese businesses, helping them grow stronger, compete effectively, and establish their brands internationally. The EVFTA provides a solid foundation for achieving this goal.
