EVFTA “empowers” Vietnamese goods to overcome green standards, expanding market shares in the EU

16/07/2026

Against a backdrop of multiple fluctuations in the world economy, where consumption demand in multiple large markets declines, the EVFTA still continues to serve as one of the crucial drivers helping Vietnamese commodities maintain an export growth momentum to one of the markets possessing the highest standards in the world.

Drivers for enterprises to overcome green barriers

Nearly six years since the EU-Vietnam Free Trade Agreement, the EVFTA officially entered into force, market opening commitments are being gradually converted into impressive growth figures. In reality, in recent years, alongside tariff preferences from the EVFTA, the European Union also continuously elevates sustainable development requirements against imported goods. Regulations related to carbon emissions, anti-deforestation, the circular economy, traceability, clean energy utilization, CBAM standards, or social responsibility within supply chains are becoming crucial criteria for goods to approach and maintain a foothold in this market. That sets out plenty of challenges against Vietnamese enterprises, particularly core export sectors such as agricultural products, seafood, wood, garments, and footwear.

However, instead of viewing this merely as a trade barrier, multiple enterprises have proactively invested in innovating technology, constructing standardized raw material zones, applying international quality management systems, strengthening traceability, and executing green transformation within the entire production process. Precisely those efforts are helping multiple commodities of Vietnam not only satisfy the increasingly strict standards of the EU but also elevate added value, consolidate brand prestige, and continue to maintain export growth momentum to the market possessing top-tier requirements in the world. Thanks to that, the EVFTA Agreement has been and is empowering Vietnamese goods to conquer the EU market, even though this market is erecting multiple barriers against Vietnamese goods.

Mr. Nguyen Hoai Nam, General Secretary of the Vietnam Association of Seafood Exporters and Producers (VASEP), stated that the EVFTA has brought positive results to Vietnam's seafood exports. Currently, seafood export turnover to the European Union (EU) market still maintains at a level of 1.1 to 1.3 billion USD annually, thereby firmly maintaining its position within the "billion-dollar club". Although the growth speed is not yet truly high, maintaining this turnover scale carries a very massive meaning against a backdrop where competition becomes increasingly fierce, the EU continuously diversifies supply sources, and Vietnam is still bearing the IUU "yellow card" warning against marine capture fisheries.

"Firmly maintaining the growth momentum and keeping export turnover at a level of over 1 billion USD demonstrates that Vietnamese enterprises have utilized quite efficiently the opportunities from the EVFTA. This also serves as a testament demonstrating that the business community has proactively exploited well the preferences brought by the Agreement over the past time," Mr. Nguyen Hoai Nam evaluated.

Not only bringing advantages regarding tariffs, the EVFTA also generates conditions for Vietnamese seafood to step-by-step elevate its position in the European market. According to Mr. Nguyen Hoai Nam, Vietnam currently owns a system of processing factories achieving European standards, with multiple facilities granted codes to export to the EU. This serves as an important foundation helping products, particularly Vietnamese shrimp, go deeper into the supply chains of supermarket systems and distribution channels in this market.

According to Customs data, in 2025, the total two-way trade turnover between Vietnam and the European Union reached more than 73.8 billion USD, up nearly 8% compared to the previous year. Within this, Vietnam's exports to the EU reached over 56 billion USD, an increase of 8.6%.

In the first 5 months of 2026, exports to the EU reached 25.78 billion USD, up 13.3% compared to the previous year's same period, bringing the largest trade surplus by block to Vietnam of 17.87 billion USD. The EVFTA Agreement continues to serve as a launchpad helping Vietnamese goods maintain a sustainable competitive edge in this region.

Within the export structure to Europe, the processed industrial goods group still holds the core role. Within this, computers, electronic products, and components stand at the top of the most imported commodities. Another bright spot comes from the agriculture, forestry, and fishery group. Coffee recorded an outstanding growth level in both volume and value. Vegetables and fruits, cashew nuts, and seafood also maintained high growth speeds. This is not merely the result of market demand, but also demonstrates that multiple Vietnamese enterprises are step-by-step satisfying better the EU's strict requirements on quality, food safety, traceability, as well as green standards and sustainable development.

Satisfying rules of origin and green standards

However, the room to exploit the EVFTA remains very massive. According to the Ministry of Industry and Trade, the rate of utilizing preferential certificates of origin under the EVFTA in 2025 merely reached around 34.6%, slightly decreasing compared to the previous year. This means that there remain multiple enterprises not yet utilizing fully the tariff preferences brought by the agreement.

Mr. Tran Thanh Hai, Deputy Director of the Import-Export Department - Ministry of Industry and Trade, emphasized that utilizing the free trade agreements (FTAs) efficiently possesses multiple different methods. Within this, one of the crucial factors is that enterprises must satisfy the rules of origin. Only when satisfying these rules do enterprises possess conditions to enjoy preferential import tariff levels lower than normal tariff levels.

To satisfy rules of origin, enterprises need to restructure supply chains, particularly against enterprises utilizing input raw materials from multiple different countries. First of all, enterprises need to prioritize utilizing raw materials manufactured by Vietnam. If doing that, they will not encounter difficulties regarding origin issues.

However, against a backdrop where there are products and items for which Vietnam cannot yet self-satisfy raw material sources, enterprises need to proactively seek supplies from economies jointly participating in the free trade agreements. As such, enterprises can utilize cumulation rules of origin to satisfy FTA regulations and enjoy tariff preferences.

Mrs. Nguyen Thi Hoang Thuy, Trade Counselor, Head of the Vietnam Trade Office in Sweden, concurrently in charge of Northern Europe, stated that those commodity groups where Vietnam is growing in Northern Europe are also the groups bearing the largest pressure from new standards. Electronics and machinery must satisfy higher requirements regarding safety, chemicals, durability, and reparability. Garments and footwear must transparentize raw materials and product life cycles. Meanwhile, coffee, wood, and furniture must prove origin down to the production zones.

This demonstrates that competitive edge is shifting from cost and tax rates to data governance capacities, supply chain control, and proving sustainability.

The European Union's Carbon Border Adjustment Mechanism (CBAM) entered into its official phase starting from January 1, 2026, initially applying to highly emitting sectors such as iron and steel, aluminum, cement, and fertilizers.

Although direct impacts against Vietnamese goods in Northern Europe currently remain restricted, importers increasingly request verifiable data regarding energy, fuel, input raw materials, and emissions. Therefore, greenhouse gas inventorying and carbon footprinting will gradually become competitive conditions. Enterprises need to soon determine commodity codes and CBAM obligations, particularly with iron and steel products currently growing.

Or, the European Union Deforestation Regulation (EUDR) applies starting from the end of 2026 against large and medium enterprises, and from mid-2027 against the majority of small and micro enterprises. The regulation directly impacts coffee, rubber, wood, cocoa, and related products.

Accordingly, national origin is no longer sufficient. Enterprises must determine the growing zone or harvesting zone, manage geographical data, and control intermediary stages. This is a challenge for fragmented supply chains, but also serves as an opportunity for enterprises possessing good traceability systems to approach importers and high value-added segments.

The EVFTA is not merely a free trade agreement, but also serves as a driver driving Vietnamese enterprises to innovate production models, elevate commodity quality, and step-by-step conquer the high standards of the international market.

The results achieved after nearly 6 years of execution demonstrate that, when knowing how to efficiently utilize integration commitments, Vietnamese enterprises can completely expand market shares in the European Union, raise export values, and elevate the position of Vietnamese goods on the global trade map.

In the coming time, alongside elevating the rate of utilizing tariff preferences, satisfying better rules of origin and green standards, the EVFTA will continue to serve as one of the crucial drivers contributing to driving export growth, diversifying markets, and creating a foundation for sustainable economic development of Vietnam.

Source: Cong thong tin dien tu Bo Cong Thuong

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