HANOI: Six years after the European Union (EU)-Vietnam Free Trade Agreement (EVFTA) entered into force, the deal has evolved beyond a tariff-cutting agreement into a framework underpinning trade integration, supply chain resilience and higher-value investment between Vietnam and the European Union, according to the European Chamber of Commerce in Vietnam (EuroCham).
The agreement, which took effect on Aug 1, 2020, has accelerated bilateral trade to a pace unmatched in previous decades.
Vietnam Customs and the National Statistics Office under the Finance Ministry data showed two-way trade between Vietnam and the EU exceeded US$900bil between 1995 and June 2026.
Of this, nearly US$384bil – or 42.6% of the total – was generated during the six years since the EVFTA came into force.
“Nearly half of three decades of EU-Vietnam trade has taken place under the framework established by the agreement, highlighting how rapidly commercial integration accelerates once market access barriers begin to lift,” EuroCham Chairman Bruno Jaspaert said in a report.
“What began as an ambitious political commitment six years ago has become measurable economic value,” he said.
The agreement has reshaped how European companies viewed Vietnam, with the country increasingly serving as a strategic production and growth base in Asia.
According to EuroCham’s Business Confidence Index, as of the second quarter of 2026, 55% of surveyed European businesses now regard Vietnam as either their core operating hub or primary growth market, while another 22% consider it an important part of their regional network.
Among companies actively engaged in EU-Vietnam trade, half reported directly benefiting from EVFTA tariff preferences, while sectors including logistics, trading and consumer goods recorded the strongest gains.
One in four surveyed firms reported cost savings of between 16% and 30%, roughly double the average across all sectors.
A European importer said more than 80% of its trade with Vietnam now qualifies for EVFTA tariff preferences.
Although tariff savings contributed only modestly to profit margins, lower import costs allowed the company to reduce prices in the Vietnamese market, strengthening competitiveness and supporting further business expansion.
For logistics providers, the use of EVFTA preferences by exporters has translated into steady growth in freight forwarding, warehousing and supply chain services.
From its seventh year of implementation, the EU has completed its tariff elimination schedule, granting duty-free access to 99% of tariff lines for Vietnamese exports, marking one of the agreement’s most important milestones.
Vietnam will continue reducing tariffs on EU goods over the next four years in line with its commitments, with full implementation scheduled for 2030.
EuroCham vice-chairman Jean-Jacques Bouflet said as the agreement enters its seventh year, businesses face a changing policy environment in Europe.
As new EU regulations including the Carbon Border Adjustment Mechanism, the EU Deforestation Regulation and wider European Green Deal policies reshape market requirements, Vietnamese exporters will compete on their ability to meet sustainability, traceability and due diligence standards rather than price alone.
Simplifying customs procedures, accelerating value added tax refunds, digitising trade documentation and clarifying rules of origin would help more businesses make better use of the agreement, said Eurocham. — Viet Nam News/ANN
