EVFTA creates momentum for bilateral trade growth
Among 18 free trade agreements (FTAs) that Vietnam has signed and implemented, Vietnam-EU Free Trade Agreement (EVFTA) is considered one of the most effective. Not only does it expand opportunities to access EU market, but EVFTA also contributes to promoting investment, technology transfer and creating momentum for production and export activities of Vietnamese businesses.
Speaking at Vietnam-EU Economic and Trade Cooperation Forum 2026, Ms. Nguyen Thao Hien, Deputy Director of Department of Foreign Market Development and Multilateral Trade (Ministry of Industry and Trade), stated that impact of EVFTA is reflected in both trade growth and foreign direct investment (FDI) flows from EU into Vietnam.
According to statistics from Vietnamese Ministry of Finance, before 2020, total FDI from EU into Vietnam reached approximately US$22.17 billion. By 2025, this figure is expected to increase to US$32.7 billion, equivalent to an increase of about 44%. This investment capital not only supplements resources for the economy but also creates conditions for Vietnam to acquire technology, improve production capacity and increase processing content in products.
In field of trade, by 2025, total bilateral import and export turnover is projected to reach US$81.35 billion, a 67% increase compared to 2020. Average growth rate is expected to be around 9-10% per year, with increases in both export and import.
“This result is even more remarkable considering that international trade over the past six years has faced numerous challenges, from pandemic and geopolitical conflicts to supply chain disruptions and tariff measures. In this context, Vietnam-EU trade has maintained its growth momentum, demonstrating positive impacts of EVFTA and proactive approach of businesses on both sides in exploiting market opportunities”, emphasized Ms. Nguyen Thao Hien.
Along with growth in turnover, structure of import and export goods between two sides has also changed significantly. Vietnam's key export product groups, such as consumer goods, computers, electronic components, textiles and footwear, continue to play a crucial role. In addition, several product groups with higher added value in Vietnam's production chain, especially agricultural products, processed foods, services and software are increasing.
Processing content in products manufactured in Vietnam has also gradually increased over the years, partly thanks to investment capital and technology from EU. Products manufactured in Vietnam not only serve EU market but also have access to other markets with which Vietnam has signed FTAs.
Conversely, import from EU increased from US$14.28 billion to US$19.44 billion, equivalent to an increase of approximately 36.1%. Machinery, equipment and technology continue to be main import groups, reflecting need to modernize domestic production and opening up opportunities for supply chain linkages between Vietnamese and EU businesses.
Assessing future prospects, Ms. Nguyen Thao Hien believes that EU will continue to be a key partner and traditional market for Vietnam. Notably, Vietnamese export currently account for only about 2.5% of EU's total imports from non-EU countries. This proportion indicates significant potential for Vietnamese businesses to further expand their market share in EU.
However, businesses also face numerous challenges. Economies of some EU member states are experiencing difficulties, recession and inflation, impacting purchasing power. Non-tariff barriers and protectionist measures are on rise. Along with export growth, risk of Vietnamese goods facing trade defense measures and anti-dumping investigations is also becoming increasingly apparent.
Ministry of Industry and Trade shifts its focus to supporting and enhancing business capacity.
Given changes in the EU market, requirement is not only to take advantage of tariff preferences but also to enhance competitiveness of businesses. This is also direction of Ministry of Industry and Trade's support activities, aiming to help businesses more deeply explore EU market, expand exports and participate directly in supply chain. According to Ms. Nguyen Thao Hien, in recent times, Ministry of Industry and Trade, in coordination with business community and relevant agencies, has focused on implementing three main groups of tasks: providing information; supporting market opening, protecting business rights and improving investment and business environment; and connecting business communities on both sides.
These activities will continue to be maintained in future. Providing information is a crucial aspect, helping businesses understand market developments, identify opportunities and stay updated on new requirements from EU. Ministry of Industry and Trade will also continue to coordinate support for market opening, protecting business rights, improving investment and business environment and connecting Vietnamese and EU businesses to find partners, expand cooperation and participate more deeply in supply chains.
In particular, given rapid changes in international trade, Ministry of Industry and Trade has identified need to supplement solutions to support businesses in enhancing two crucial capabilities: resilience and adaptability. “For EU market, we must shift from competition based on tariffs to genuine competition based on capabilities of businesses,” emphasized Ms. Nguyen Thao Hien.
According to representative of Ministry of Industry and Trade, when geopolitical conflicts cause a region to close its market, energy prices rise sharply, or supply chains are disrupted, an individual business or a group of businesses in the same industry will find it difficult to cope with all uncontrollable fluctuations on their own.
Therefore, resilience is not only an internal issue for each business but also requires support from the Government, coordination between the governments of both sides and participation in multilateral forums. This coordination aims to create conditions for businesses to maintain operations, overcome difficulties and continue to develop.
Along with resilience, adaptability is also considered an urgent requirement. EU market is changing rapidly, from consumer preferences and import regulations to pace of scientific and technological development. Businesses cannot rely solely on existing advantages, especially as tariff preferences from EVFTA are gradually being exploited.
Adaptability requires businesses to proactively adjust to market changes and new demands in production and business. Failure to keep up with this pace of change risks businesses losing competitiveness and being eliminated from the market.
Therefore, direction of supporting businesses in exploiting EU market in the coming time should not only focus on taking advantage of EVFTA's tariff commitments but also concentrate on enhancing competitiveness, resilience and adaptability to international trade fluctuations.

Source: Vitic/ congthuong.vn