Vietnam is currently the EU’s third-largest goods supplier outside the bloc, its largest trading partner in ASEAN, and ranks ninth globally among exporters to the EU market.

According to the Ministry of Industry and Trade, the EVFTA has expanded bilateral trade and foreign investment. EU direct investment in Vietnam rose 44% from US$22.7 billion in 2020 to US$32.7 billion in 2025. Total two-way trade surged 67% over the same period to US$81.35 billion, averaging 9% to 10% annual growth.

Nguyen Thao Hien, Deputy Director General of the Ministry's Department of Foreign Market Development and Multilateral Trade, said bilateral trade maintained strong growth despite global supply chain disruptions, geopolitical conflicts, and economic downturns.

The agreement has also allowed Vietnamese exporters to diversify beyond traditional Western European ports into Northern and Eastern European markets.

Product structures have shifted noticeably. Alongside electronics, textiles, and footwear, high-value agricultural and processed food exports grew sharply, with fruit and vegetable shipments jumping 40% and coffee increasing 17%.

Rising investment and machinery imports from the EU, which grew from US$14.2 billion to US$19.44 billion, have helped modernize domestic manufacturing and deepen supply chain integration between the two sides.

Nguyen Thi Minh Nguyet, Chairwoman and CEO of WestFood Hau Giang, noted that tariff eliminations under the EVFTA give Vietnamese processed agricultural products a price edge over competitors while helping exporters meet strict technical standards required by the EU and other major markets like the US, Japan, the Republic of Korea, and Australia. Trade officials project Vietnam’s share of EU imports to rise from 2.5% to 3.5% by 2030.

However, economic headwinds across EU member states, alongside rising inflation and weakening purchasing power, continue to weigh on trade. Although the EVFTA eliminates up to 99% of tariffs, non-tariff barriers, environmental protection rules, and circular economy standards are driving up compliance costs for businesses.

To turn EVFTA potential into concrete investment projects, experts say Vietnam must improve policy transparency and predictability, law enforcement, and domestic enterprise connectivity to move further up the global value chain.

Source: VOV

https://english.vov.vn/en/economy/vietnam-eu-trade-shifts-to-high-value-goods-under-evfta-post1348438.vov