Despite these headwinds, the deal has proven highly effective, pushing Vietnam to the top of the EU’s trading partners in Southeast Asia and the EU as Vietnam’s fourth largest trading partner globally, with electronics, apparel, and footwear driving the country’s ascent in the global value chain.

The EU - Vietnam Free Trade Agreement (EVFTA), now in its fifth year, remains a crucial tool to foster the strategic partnership between Vietnam and the European Union (EU), said Ambassador Nguyen Van Thao, Head of Vietnam's Mission to the EU.

Thao, who is also Vietnamese Ambassador to Belgium, described the EVFTA as a landmark in the history of Vietnam–EU cooperation, particularly amid global challenges like the COVID-19 pandemic, geopolitical conflicts, growing protectionism and restrictions on free trade.

Despite these headwinds, the deal has proven highly effective, pushing Vietnam to the top of the EU’s trading partners in Southeast Asia and the EU as Vietnam’s fourth largest trading partner globally, with electronics, apparel, and footwear driving the country’s ascent in the global value chain.

He placed particular emphasis on the agro-forestry-fisheries sector, where Vietnamese products have gained traction in the EU market. More importantly, they have broad socio-economic impacts, particularly in rural areas, Thao noted.

While the EVFTA has driven notable progress, Vietnam must do more to fully cash in on its potential. With only Vietnam and Singapore having FTAs with the EU among ASEAN nations, Vietnam enjoys a “golden window” to cement its foothold in the lucrative but demanding European market, he said.

The agreement’s benefits extend beyond exports, opening avenues for quality European investment – key to Vietnam’s sustainable development. Such capital flows will help Vietnam better adapt to global trends like climate change mitigation, green transition, digital transformation, and heightened environmental standards, he stressed.

The EVFTA paves the way for diversified trade, expanded supply chains, and a stronger regional role for Vietnam, Thao said, calling it an “expressway” for economic ties. But he also advised Vietnamese firms to master Europe’s complex regulations, consumer preferences, and partnership networks if they want to fully capitalise on the deal’s potential./.

Source: Vietnam+

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