According to the newly released report “Vietnam After 5 Years of EVFTA Implementation: Achievements, Requirements, and Reform Directions” by the Central Institute for Economic Management (CIEM), Vietnam’s exports to the European Union (EU) have grown significantly, driven by tariff reductions that benefited major export sectors such as textiles, footwear, agriculture, and seafood.
In 2014, Vietnam’s exports to the EU reached USD 27.9 billion. By 2024, this figure had risen to USD 51.66 billion, marking an impressive increase. The EU’s share in Vietnam’s total export value has gradually expanded, reaching 13.19% in 2024.
Vietnam also maintained a large trade surplus with the EU — USD 35.2 billion in 2024, the highest among all of Vietnam’s free trade agreements (FTAs). Meanwhile, the utilization rate of EVFTA preferential tariffs increased from 14.8% in 2020 to 35.2% in 2023.
1. EVFTA Boosts Trade and Investment Ties
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In 2024, Vietnam’s trade surplus with the EU hit a record USD 35.2 billion.
The EU–Vietnam Free Trade Agreement (EVFTA) has also created strong investment momentum from EU enterprises, especially in high-tech industries, renewable energy, and green manufacturing.
Market access commitments, investment protection, and business environment improvements have made Vietnam an increasingly attractive destination for European investors.
2. Legal and Institutional Reforms Driven by EVFTA
The EVFTA’s chapters on intellectual property, labor, environment, and sustainable development have encouraged Vietnam to modernize its legal framework and align it more closely with international standards.
Notable progress has been made in:
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Customs transparency
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Improving the business environment
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Raising labor standards
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Enhancing environmental protection
Sustainable Development Focus
The agreement has pushed Vietnam to adopt higher environmental and labor standards, as well as corporate sustainability practices.
According to Mr. Nguyễn Anh Dương, Head of General Research Department at CIEM, the EU’s new sustainability regulations have significantly impacted Vietnamese businesses.
However, early signs are positive — many companies have begun reducing emissions, adopting circular economy models, and aligning production processes with the EU’s sustainability requirements.
These achievements are supported by domestic policy reforms, especially those promoting a circular and green economy.
3. Challenges in EVFTA Implementation
Despite positive results, CIEM’s study also highlights several challenges:
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Low utilization of tariff preferences, as many enterprises still fail to meet strict rules of origin.
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EU foreign direct investment (FDI) inflows have not increased as expected, hindered by administrative procedures, tax policies, and weak domestic supply chains.
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Stricter EU requirements on labor, environment, and sustainability demand stronger adaptation strategies from Vietnam.
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Small and medium-sized enterprises (SMEs) need greater capacity building and support to take full advantage of EVFTA opportunities.
4. Outlook and Policy Recommendations
According to Dr. Đặng Đức Anh, Deputy Director of CIEM, Vietnam and the EU have shown strong trade complementarity, and both sides still have considerable potential for deeper cooperation — particularly in:
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Addressing rising global protectionism
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Developing fair competition rules
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Promoting innovation and new technologies
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Implementing sustainable development and climate adaptation policies
Key Recommendations:
To maximize the benefits of EVFTA, CIEM recommends:
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Continuing to review and revise Vietnam’s legal and regulatory framework to fully comply with EVFTA commitments.
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Enhancing cooperation between Vietnam and the EU in new technology and sustainability-oriented reforms.
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Improving coordination between central and local authorities for more efficient implementation.
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Strengthening communication, training, and guidance for enterprises — especially SMEs — to help them leverage tariff advantages.
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Simplifying administrative procedures and ensuring transparent, stable policies to attract high-quality EU FDI.
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Supporting innovation, digital transformation, and production optimization to improve competitiveness in EU markets.