Việt Nam emerges as EU's top ASEAN exporter under EVFTA
The country’s export value to the EU has skyrocketed by nearly 50 per cent, solidifying its position as the EU’s leading trading partner in ASEAN.
August 1, 2020, marked a significant milestone for Việt Nam and the European Union (EU) as the EU-Việt Nam Free Trade Agreement (EVFTA) came into effect.
Four years on, Việt Nam stands tall as the leading ASEAN exporter to the EU, reaping the benefits of a thriving economic partnership that has spurred economic growth, job creation and consumer access to premium European products.
According to experts, the gradual elimination of import tariffs under the EVFTA has made European goods more affordable for Vietnamese consumers. Meanwhile, export-oriented sectors like apparel, footwear, and logistics have thrived, generating new jobs and upskilling the workforce.
According to the Ministry of Industry and Trade (MoIT), Việt Nam’s export value to the EU has skyrocketed by nearly 50 per cent, solidifying its position as the EU’s leading trading partner in ASEAN. Conversely, imports from the EU have also surged by over 40 per cent.
The General Department of Việt Nam Customs reported that in June alone, the country's exports to the EU rose by 7.85 per cent month-on-month and 19.54 per cent year-on-year, surpassing US$4.28 billion.
For the first half, the figure reached over $24.69 billion, marking an annual rise of 15.37 per cent. Major export items included aquatic products, fruits and vegetables, footwear, apparel, wood and wooden furniture, with the Netherlands, Germany, Italy and Spain being the major importers.
A survey by the Việt Nam Chamber of Commerce and Industry (VCCI) found that businesses are more aware of the EVFTA than other free trade agreements, with nearly half reporting specific benefits. As a result, the country's export to the EU surged by 16.7 per cent in 2022 and around 20 per cent in 2023.
Dominik Meichle, chairman of the European Chamber of Commerce (EuroCham) in Việt Nam, hailed the EVFTA’s role in making the EU the sixth-largest foreign direct investment (FDI) source of Việt Nam, with 2,450 projects worth over 28 billion EUR, despite the pending ratification of the EU-Việt Nam Investment Protection Agreement (EVIPA).
The EVFTA has also helped improve Việt Nam’s business environment, attracting more FDI from the EU and other countries. Leveraging the deal’s advantages, investment in Việt Nam has soared, particularly in high-tech manufacturing and services like finance, banking, insurance, energy, telecommunications and transportation.
Hailing the EU’s status as ASEAN's third largest trade partner with two-way trade of $296.87 billion in 2023, and Southeast Asia’s leading FDI investor, Deputy Minister of Industry and Trade Nguyễn Hoàng Long said as the coordinator of ASEAN-EU economic relations and the first developing country to sign and implement an FTA with the EU, Việt Nam will continue to support and advance cooperation between the two sides, especially in trade and investment, contributing to the stability and diversity of supply chains connecting the two regions and facilitating collaboration between their business communities.
According to the Business Confidence Index released by EuroCham Việt Nam in early 2024, nearly 71 per cent of EU enterprises hold a positive outlook for their long-term operations in Việt Nam. — VNS
