Great opportunities from EVFTA come with compliance challenges
On morning of September 18, 2025, Ho Chi Minh City Investment and Trade Promotion Center (ITPC) in collaboration with Trade Representative Office of Rheinland-Pfalz State (Germany) in Vietnam and TradeComply Company organized workshop "Complying with import-export trade regulations under EVFTA to optimize costs and take advantage of tax incentives". The event aims to support business community in updating new regulations and sharing experiences in implementing EU-Vietnam Free Trade Agreement (EVFTA) in context of increasingly deep integration.
EVFTA is considered a new generation free trade agreement, opening door for Vietnamese goods to penetrate deeper into the European market. Key industries such as textiles, footwear, wooden furniture, processed agricultural products and seafood are expected to benefit significantly from tariff incentives according to the roadmap of cutting nearly 99% of tax lines within 7 years.
Sharing at the workshop, Ms. Nguyen Thi Phuong, CEO of TradeComply Company, emphasized: EVFTA Agreement will only become a "golden lever" for businesses if they truly comply with all relevant regulations. A small mistake can also cause businesses to lose all tax incentives.
In fact, common cases such as applying the wrong HS code, lacking valid documents (C/O form EUR.1), not meeting the minimum regional value content ratio of 40%... are causing many businesses to lose the opportunity to compete in the EU market. For example, the tax rate on shirts exported to Germany reduced from 12% to 0%, which could save nearly 1 million USD for every million products, but only if HS codes and rules of origin are followed correctly.
In addition, the EU is implementing a series of new regulations that directly impact Vietnamese exporters. Specifically, the Carbon Border Adjustment Mechanism (CBAM) will start collecting carbon taxes from 2026 on items such as iron and steel, cement, aluminum and fertilizer. At the same time, the Anti-Deforestation Regulation (EUDR) will take effect from mid-2025 for small and medium-sized enterprises, requiring proof of sustainable origin for items such as coffee, rubber, wood, etc.
At the workshop, speakers shared many practical contents related to exporting to the EU, especially common mistakes that cause SMEs to lose EVFTA incentives. In addition, businesses are also updated with new trade regulations that will take effect from 2026 and digital solutions in import-export management. The application of digital assistant tools will help businesses optimize costs, reduce risks and improve document processing efficiency, a key factor for adaptation in the global supply chain.
Rheinland-Pfalz - a strategic gateway to Europe for Vietnamese businesses
Ms. Phan Thuy My, Head of the Trade Representative Office of Rheinland-Pfalz State (Federal Republic of Germany) in Vietnam, shared an overview of the potential for cooperation between Vietnamese businesses and this state.
Rheinland-Pfalz is known as the "heart of Europe", possessing a strategic location only 30 km from Frankfurt airport and a well-developed inland transport network with 605 km of waterways and 141 inland ports. The state’s dynamic economy will reach a GDP of €171.7 billion by 2022, of which more than 99% are SMEs with an export ratio of up to 58%.
It is also home to key industries such as automotive manufacturing, medical technology, chemicals, wine, and pioneering fields such as artificial intelligence (AI), digital transformation and environmental technology. The state owns 4 universities, 23 research institutes and many innovation support programs, including the RLP II & III Innovation Fund with grants of up to €2 million for small technology companies.
Ms. Phan Thuy My added that the EU has now revised the rules of origin, effective from 1/1/2025, creating more flexibility for goods with origin certification. At the same time, import procedures are gradually being digitized through systems such as ELAN, Safety Declaration and electronic declaration platforms.
In 2026, the state of Rheinland-Pfalz will organize many promotional activities such as: wine and green technology exhibition program in Germany, business management training course for young Vietnamese experts and cross-border supply chain connection events. These programs will be a bridge to promote long-term cooperation between businesses of the two countries.

Source: Vitic/ congthuong.vn