HCMC – The EU-Vietnam Free Trade Agreement (EVFTA) has driven bilateral trade to nearly US$300 billion after five years of implementation, according to the European Chamber of Commerce in Vietnam (EuroCham).
Signed on June 30, 2019, and coming into force on August 1, 2020, the EVFTA stands as one of the EU’s most comprehensive and ambitious trade agreements with a developing country.
The deal has eliminated more than 70% of tariffs on goods traded between the two sides, with almost 99% of remaining tariffs to be phased out in the years ahead.
Additionally, it supports businesses in expanding markets, strengthens intellectual property protection, enhances legal transparency, and facilitates bilateral trade.
The EVFTA had helped raise bilateral trade to US$298 billion as of May 2025, accounting for nearly 40% of the total trade value between the two sides over the past three decades.
The EVFTA has also made Vietnam the EU’s largest trading partner in ASEAN and its 16th largest globally. Vietnam’s main exports to the EU include electronics, textiles, furniture, and agricultural products.
Conversely, the EU is Vietnam’s third-largest export market and fourth-largest import source, supplying strategic goods such as machinery, green technologies, pharmaceuticals, and vehicles.
However, a major challenge in implementing the EVFTA lies in the rules of origin requirements. Many Vietnamese businesses still depend on raw materials and components imported from third countries.
Although the EVFTA allows for origin cumulation with certain countries, the documentation process remains complex. Around 37% of enterprises report frequent discrepancies in customs valuation, which increases costs and reduces competitiveness.
Certificates of origin (C/O) are now considered vital tools for businesses to benefit from preferential tariffs.
In 2024, Vietnam issued over 1.8 million preferential C/Os, supporting exports valued at more than US$100 billion. Exports to the EU alone reached a record high of US$51.7 billion, up 18.4% increase compared to the same period last year.
