After 6 years of implementation, the EU-Vietnam Free Trade Agreement (EVFTA) continues to mark a major milestone as 99% of Vietnamese goods exported to the EU enjoy a 0% tariff rate. Beyond generating momentum for bilateral trade, the EVFTA also contributes to transforming Vietnam into an increasingly vital link in the supply chains and investment strategies of European enterprises.

According to data from Vietnamese customs authorities and the National Statistics Office (NSO), total trade turnover between Vietnam and the EU from 1995 to the end of June 2026 surpassed 900 billion USD. Notably, in the 6-year period alone since the EVFTA took effect (August 2020 – June 2026), trade turnover reached 383.8 billion USD, accounting for up to 42.6% of the total trade value built over more than three decades.

According to Mr. Bruno Jaspaert, Chairman of EuroCham, the EVFTA has expanded beyond the framework of a conventional trade agreement to become a foundation consolidating the confidence of the business community and reshaping economic relations between Vietnam and Europe.

Survey results from EuroCham's Business Confidence Index (BCI) for Q2/2026 reveal that 55% of European enterprises consider Vietnam an operational hub or strategic growth market, while 22% view Vietnam as an essential link in regional production and business networks. This reflects Vietnam's escalating standing within European enterprises' Asian expansion strategies.

Enterprises benefit clearly from tariff preferences

Beyond generating momentum for trade, the EVFTA also delivers direct cost benefits to enterprises.

According to EuroCham, approximately half of European enterprises participating in trade with Vietnam have capitalized on tariff preferences under the EVFTA. Among them, 33% of enterprises apply preferential tariff rates to at least 20% of total trade turnover, and nearly 20% apply them to over half of their traded goods volume.

Notably, 66% of enterprises reported recording clear financial efficacy from the agreement. The majority achieved savings of 5-15% in costs, while 11% of enterprises attained cost savings exceeding 30%.

The most prominent benefits belong to enterprises operating in the fields of trade, logistics, and consumer goods, where the proportion of enterprises saving 16-30% in costs stood double the average rate across all sectors.

According to insights shared by a European importing enterprise participating in the BCI survey, over 80% of its current trade volume between the EU and Vietnam enjoys tariff preferences under the EVFTA. Reduced import costs have created conditions for the enterprise to lower selling prices by 5-15%, thereby elevating competitive capacity and expanding market share.

For logistics enterprises, an increasing number of clients capitalizing on the EVFTA also contributes to propelling demand for freight, warehousing, and cross-border supply chain services.

99% of Vietnam's exports to the EU are duty-free

Entering the seventh year of EVFTA implementation, the EU officially completed its market opening roadmap as committed, bringing 99% of Vietnamese goods exported to the EU under duty-free status.

In practice, the vast majority of Vietnamese goods previously enjoyed preferential tariff levels of around 80%. Completing the tariff elimination roadmap across nearly all tariff lines is expected to create additional momentum for core export sectors such as electronics, textiles and garments, footwear, wooden furniture, agricultural products, and mechanical engineering.

Conversely, Vietnam continues executing its tariff reduction roadmap for goods originating from the EU and is expected to fully complete its commitments by 2030.

Positive outcomes were also reflected through trade data in the first half of 2026. Import-export turnover between Vietnam and the EU reached 41.4 billion USD. Within which, Vietnam's exports reached 31.8 billion USD and imports reached 9.7 billion USD, recording a trade surplus of approximately 22 billion USD.

Notably, this trade surplus figure has surpassed results for the entirety of 2019—the period prior to the EVFTA taking effect.

According to Mr. Jean-Jacques Bouflet, Vice Chairman of EuroCham and former member of the EU's EVFTA negotiation delegation, bilateral trade relations should not be viewed purely through the lens of surplus or deficit. High-tech products, modern machinery, and pharmaceuticals from Europe are contributing to elevating Vietnam's productivity and production capacity, whereas Vietnam's strong commodities such as electronics, textiles and garments, footwear, wooden furniture, and agricultural products continue playing vital roles in the EU's supply chain and consumer market.

Ample room for cooperation remains open

EuroCham evaluates that the potential for cooperation between Vietnam and the EU remains exceptionally large. The EU encourages Vietnam to strengthen imports of technology, equipment, and high-value-added solutions to serve industrial modernization goals and elevate its position in global value chains.

Currently, the EU accounts for approximately 12% of Vietnam's total export turnover, whereas the proportion of imports from this region stands at merely around 4%. Increasing imports of advanced technology and equipment from Europe not only contributes to a more balanced bilateral trade ledger, but also creates a foundation for quality growth and elevating the long-term competitive capacity of Vietnam's economy.

Alongside results achieved, EuroCham also recommends that Vietnam continue reforming administrative procedures, simplifying processes, and reducing compliance costs so enterprises can capitalize more effectively on preferences brought forth by the EVFTA.

Source: Tap chi Doanh nghiep va Hoi nhap