Vietnam has achieved a notable milestone as the leading ASEAN exporter to the European Union, showcasing the benefits of the EU-Vietnam Free Trade Agreement (EVFTA). This economic partnership has significantly contributed to growth, job creation, and enhanced access to European goods for Vietnamese consumers over the past four years.
The phased reduction of import tariffs under the EVFTA has made European products more affordable for Vietnamese consumers. Key sectors such as apparel, footwear, and logistics have thrived, generating new job opportunities and improving workforce skills.
According to the Ministry of Industry and Trade, Vietnam’s exports to the EU have surged by nearly 50%, establishing its position as the EU’s primary trading partner in ASEAN. Imports from the EU have also risen by over 40%.
In June, exports to the EU increased by 7.85% compared to the previous month and 19.54% year-on-year, surpassing 4.28 billion USD. For the first half of the year, exports totaled over 24.69 billion USD, reflecting a 15.37% annual rise. Major export items include aquatic products, fruits, vegetables, footwear, apparel, and wooden furniture, with key importers being the Netherlands, Germany, Italy, and Spain.
A survey by the Vietnam Chamber of Commerce and Industry (VCCI) reveals growing awareness among businesses about the EVFTA’s advantages. Nearly half of the surveyed companies reported specific benefits, leading to a 16.7% increase in exports to the EU in 2022 and around 20% in 2023.
The European Chamber of Commerce in Vietnam commended the EVFTA for making the EU a significant source of foreign direct investment (FDI) for Vietnam. Despite the ongoing ratification of the EU-Vietnam Investment Protection Agreement, the EU has invested in numerous projects in Vietnam, totaling over 28 billion EUR.
The EVFTA has also improved Vietnam’s business climate, attracting increased FDI, especially in high-tech manufacturing and services such as finance, banking, insurance, energy, telecommunications, and transportation.
With the EU ranking as ASEAN’s third-largest trade partner and leading investor in Southeast Asia, Vietnam remains committed to enhancing ASEAN-EU cooperation. As the first developing country to sign and implement an FTA with the EU, Vietnam aims to further strengthen trade and investment ties, promoting stability and diversity in supply chains between the two regions.
The Business Confidence Index released in early 2024 shows that nearly 71% of EU enterprises have a positive outlook on their long-term operations in Vietnam
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