By Global Success Review Magazine | August 2025 Edition
In an increasingly fragmented global trade environment, the European Union–Việt Nam Free Trade Agreement (EVFTA) stands as a beacon of cooperation, sustainability, and shared growth. Celebrating its fifth anniversary this August, the agreement has propelled bilateral trade between the EU and Việt Nam to a staggering $300 billion, marking a transformative shift in economic dynamics and international relations.
A Pivotal Milestone in Global Trade
Signed on June 30, 2019 and enacted on August 1, 2020, the EVFTA is one of the EU’s most ambitious trade deals with a developing country. It has swiftly delivered tangible benefits by eliminating over 70% of tariffs, with up to 99% set to be phased out in the coming years. In just five years, EU–Việt Nam trade has reached nearly $298 billion, amounting to 40% of total trade over the past 30 years between the two economies.
Việt Nam has since emerged as the EU’s top trading partner in ASEAN and 16th globally, while the EU has solidified its place as Việt Nam’s third-largest export destination and fourth-largest import source.
Shared Values, Tangible Results
The EVFTA is more than a tariff-cutting agreement, it represents a deep-rooted strategic alignment based on rules-based governance, sustainability, and mutual economic opportunity. According to Bruno Jaspaert, Chairman of the European Chamber of Commerce in Việt Nam (EuroCham), the EVFTA exemplifies trust in an era marked by rising trade barriers.
“In today’s climate of geopolitical uncertainty, the EVFTA is a beacon of trust and cooperation… It offers clarity and certainty in global trade,” Jaspaert shared.
EuroCham’s latest Business Confidence Index (Q2 2025) reveals that 66% of EU businesses are actively engaged in Việt Nam–EU trade, with half reporting moderate to significant gains from the agreement. Awareness is near-universal, with 98.2% of businesses familiar with the EVFTA.
Empowering SMEs and Driving Innovation
While multinational corporations have benefitted, small and medium-sized enterprises (SMEs) are also tapping into the advantages. The share of businesses citing tariff reductions as a key benefit has surged from 29% in 2024 to 61% in 2025. Firms able to quantify gains report an average 8.7% increase in profitability, with some experiencing up to 25% growth.
The agreement has unlocked new sectors for collaboration. In digital transformation, green energy, and sustainable agriculture, European innovation is intersecting with Việt Nam’s development priorities. Initiatives in digitalised farming, for instance, are boosting the productivity and quality of Việt Nam’s agricultural exports to Europe.
A Gateway to Markets and Opportunity
For Vietnamese exporters, the EU represents a goldmine of opportunity. With a population of over 450 million, a combined GDP of $29 trillion (PPP), and GDP per capita exceeding $43,000, the EU is the world’s largest and most affluent single market.
Việt Nam’s top exports include electronics, textiles, furniture, and agri-food products, while European firms are supplying high-tech machinery, vehicles, pharmaceuticals, and green tech to support Việt Nam’s industrial growth and sustainability goals.
Challenges on the Road to Full Potential
Despite impressive progress, hurdles remain. Approximately 37% of firms report issues with customs valuation. Others face regulatory ambiguities, inconsistent enforcement, and lack of alignment between Vietnamese and EU authorities.
Jean-Jacques Bouflet, EuroCham’s Vice-Chair for Advocacy and a lead EU negotiator for the EVFTA, emphasizes that:
“Every clause in the EVFTA was crafted with productivity and integrity in mind. Implementation is a continuous journey, requiring adaptability and collaboration.”
EuroCham’s 2025 Whitebook urges the institutionalization of reform: improved customs alignment, streamlined procedures, fair enforcement, and regulatory consistency are vital to unlocking the agreement’s full potential.
Looking Ahead: A Strategic Blueprint for the Future
As the EVFTA marks five years of success, it sets a benchmark for inclusive global trade, balancing commercial growth with sustainability and mutual respect. With Việt Nam firmly established as a vital player in global supply chains, and the EU reinforcing its strategic presence in Southeast Asia, the next chapter of this partnership promises even greater prosperity.
In an era when trade deals are increasingly politicized, the EU–Việt Nam alliance showcases what is possible when nations come together with vision, commitment, and shared values.
Global Success Review Magazine will continue to spotlight such transformative milestones that reshape global business and geopolitical narratives, championing progress, innovation, and cross-continental success stories.
Source: Vietnam News (VNS)
