Vietnamese enterprises need to elevate standards to seize "golden opportunities" from the EU market

20/08/2026

Vietnam's goods exports to the European Union (EU) are rising continuously; however, enterprises must satisfy increasingly elevated requirements in this billion-dollar market, spanning technical standards, legal compliance, and logistics costs.

Trade surplus touches a record high

At the business community gathering under the theme "Effectively Accessing French and EU Markets" organized on August 18 by the Ho Chi Minh City Investment and Trade Promotion Centre (ITPC) in collaboration with the Vietnamese Business Association in France and the French Chamber of Commerce and Industry in Vietnam, experts highlighted numerous key considerations to help enterprises expand market share in this vital market.

Evaluating the EU as a strategic export destination for Vietnamese goods, Mr. Tran Phu Lu, Deputy Director of ITPC, stated that after 6 years of implementing the EU-Vietnam Free Trade Agreement (EVFTA), two-way trade turnover grew from 49.8 billion USD in 2019 to nearly 74 billion USD by the end of 2025, with a record trade surplus reaching 38.6 billion USD.

Notably, nationwide agriculture, forestry, and fishery export turnover reached 50.75 billion USD in 2025 and is projected to surpass the 74 billion USD milestone in 2026.

Specifically in Ho Chi Minh City, fruit and vegetable exports to the EU grew by 15.84% year-on-year in the first 7 months of 2026. The city also recently issued the Program on Elevating Agricultural Product Quality and Value Associated with Market Development for the 2026–2030 Period, establishing a solid foundation for these product groups to increase market share in the EU in the upcoming period.

However, Mr. Tran Phu Lu emphasized that enterprises need to proactively address technical barriers when exporting to the EU market.

From a technical perspective, regulatory requirements are becoming increasingly strict. The French market has enforced a "Zero Tolerance" policy on pesticide residues. The EU enacted the Packaging and Packaging Waste Regulation, mandating that 100% of packaging must be recyclable by 2030. The EU Deforestation Regulation (EUDR) takes full effect from late 2026 for coffee, rubber, and timber, requiring businesses to transparentize their entire supply chains.

Facing this reality, Mr. Tran Phu Lu recommended that enterprises proactively attain food safety certifications such as HACCP and ISO 22000, control chemical residues, invest in deep processing, and adopt eco-friendly packaging to fully leverage the "golden opportunities" from EVFTA preferential tariffs and expand export market share.

Pressures from logistics costs and legal risks

Alongside technical prerequisites, transport costs directly impact the competitive strength of Vietnamese goods.

According to the latest Vietnam Export Container Freight Market Report from Phaata International Logistics Platform, ocean freight rates from Ho Chi Minh City to Europe have surged consecutively throughout the year. As of late June 2026, rates for Northern European routes rose 22.7% within a single week to 5,370 USD per 40-foot container; Mediterranean routes increased 11.8% to 6,479 USD per container, reaching a 52-week peak.

The primary reason is that shipping lines must reroute around the Cape of Good Hope to bypass the Red Sea and Middle East regions, directly eroding the price competitiveness of Vietnamese agricultural and food products.

To mitigate cost pressures, enterprises need to book slots early, negotiate long-term shipping contracts, diversify shipping routes, and collaborate to consolidate cargo to optimize logistics expenses. Actively participating in trade promotion programs is also a key strategy to access European distribution networks directly.

Providing guidance on mitigating legal risks in Europe, Lawyer Chu Lan Phuong, Managing Partner of CEVEN LAW Firm, affirmed that the EVFTA creates favorable conditions by eliminating up to 99% of tariff lines over the first 1–5 years. However, exporters still face significant hurdles from technical regulations and commercial disputes if they lack synchronized preparation.

According to Ms. Chu Lan Phuong, domestic enterprises have in practice granted exclusive distribution rights across the entire EU to new partners without thoroughly vetting their actual capabilities.

To limit risks, she recommended that enterprises link exclusivity rights to specific performance indicators (KPIs) and Minimum Order Quantities (MOQs), while applying a 3-step due diligence process:

First, thoroughly assess legal entity status, ultimate ownership, financial capacity, distribution networks, existing customer base, and compliance history of the partner.

Second, contractual Safeguards: Execute binding contracts defining territory, duration, MOQs, KPIs, marketing obligations, data rights, dispute resolution, and termination clauses.

Third, periodic Controls: Establish periodic control mechanisms, monitor operational reports, inspect KPI fulfillment, and retain the right to terminate contracts if the partner fails to meet commitments.

Furthermore, commercial contracts in the 2026–2027 period must evolve in nature: far from serving merely as revenue-sharing instruments, they must function as tools for allocating legal liabilities. Contracting parties now need to incorporate binding terms on data protection, artificial intelligence (AI) compliance, audit rights, and indemnity coverage.

To penetrate the market effectively, enterprises should assign legal representatives in the EU, standardize product packaging to comply with CE marking requirements, select suitable distribution channels, and concurrently secure dual protection for both trademarks and industrial designs.

Sharing practical operating models from an enterprise perspective, Mr. Le Hoang An, Founder of Anvan Dried Food Co., Ltd., noted that Vietnam's agricultural sector needs to shift from exporting raw materials to deep processing to maximize economic value.

Mr. An shared that since 2019, his enterprise's production workflows for spices, coffee, and dried fruit have integrated controlled instantaneous pressure drop technology. This processing method helps reduce microbiological loads and tightly control the drying process, ensuring natural products achieve high stability and satisfy international technical standards from the initial design phase.

Emphasizing this approach, Mr. Le Hoang An affirmed that technology does not replace natural value; rather, it preserves and elevates those core values. This establishes a practical foundation for combining indigenous resources with advanced technical standards, thereby creating Vietnamese products with strong competitive capabilities in global markets.

Source: Tap chi Kinh te - Tai chinh

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