EVFTA Business Matching: Latest Events and Impacts

The EU–Vietnam Free Trade Agreement (EVFTA), in force since August 2020, has significantly deepened trade ties between Vietnam and the EU. Vietnam’s exports to the EU have surged by nearly 50% over the first four years of EVFTA, making Vietnam the EU’s largest ASEAN trading partner . To capitalize on this growth, various conferences and business matching events are being organized to connect companies, share market information, and address implementation challenges. Below is an overview of upcoming networking opportunities, insights from recent events, key benefiting industries, relevant policies, and the success stories and challenges businesses face under EVFTA.

Upcoming Conferences and Business Matching Events

- Vietnam–EU Cooperation Forum 2024 (Ho Chi Minh City) – A high-profile forum hosted by Vietnam’s Ministry of Industry and Trade in November 2024 aimed to foster dialogue between government agencies and businesses from both sides . The event brought together Vietnamese officials, EU Delegation representatives, EuroCham members, and local businesses. It featured policy dialogue, market updates, and matchmaking support to forge partnerships under EVFTA . A key focus was on green growth: European business leaders discussed opportunities in energy transition, while Vietnamese authorities presented policies for sustainable production and emission reduction aligned with EU standards . The forum addressed upcoming EU regulations – such as the Carbon Border Adjustment Mechanism (CBAM) and anti-deforestation rules – and offered guidance to help Vietnamese firms comply with these new requirements .

- Green Economy Forum & Exhibition (GEFE) 2024 – Scheduled for October 21–23, 2024 in HCMC, this event (co-organized by EuroCham Vietnam and VIETRADE) gathered hundreds of European and Vietnamese stakeholders to explore sustainable business collaboration. GEFE 2024 featured panels on green trade, renewable energy, and EVFTAopportunities in the context of sustainability. It provided a platform for networking among companies interested in clean technology, aligning with EVFTA’s emphasis on sustainable development (as seen in its Trade and Sustainable Development chapter). (Source: EuroCham press release)

- Vietnam FoodExpo 2024 (Ho Chi Minh City) – Vietnam’s largest food industry expo (Nov 13–16, 2024) served as a major B2B venue with the EU as the “Guest of Honor”. The four-day exhibition hosted 500+ booths from 20+ countries – including many EU nations like Germany and Spain – showcasing agricultural products, seafood, beverages, and food processing technologies. Alongside the expo, business matching sessions were held to connect Vietnamese producers with international importers . Deputy Minister Phan Thị Thắng highlighted that FoodExpo has become a “professional and effective trading platform” helping food businesses promote brands, find partners, and expand export markets . Notably, the 2024 expo’s workshops emphasized meeting global green and sustainable standards, preparing local exporters to satisfy the strict EU market requirements – a timely topic as EVFTA tariff perks go hand-in-hand with higher quality expectations.

-  Sector-Specific Trade Fairs and Delegations – Beyond large forums, Vietnam continues to invite and engage foreign partners through targeted events. For example, the Buôn Ma Thuột Coffee Festival 2025 (March 9–13, 2025 in Đắk Lắk) is welcoming international businesses to network and explore Vietnam’s coffee exports (a key EU import) . Likewise, the Vietnam International Furniture and Home Accessories Fair (expected March 2025) offers B2B matching for the thriving Vietnamese furniture sector , which benefits from EVFTA tariff cuts. Vietnamese trade offices abroad are actively organizing networking sessions – such as a B2B matching event at ITAP 2024 in Singapore – to link Vietnamese firms with EU and regional partners . These ongoing events signal strong government and industry intent to maximize EVFTA opportunities by connecting businesses directly.

Key Takeaways from Recent EVFTA Business Events

Recent EVFTA-themed conferences and business matching programs have yielded important insights and impacts for businesses:

-  EVFTA Boosting Two-Way Trade and Investment: Events consistently underline the positive outcomes of the FTA. At a Vietnam–Germany business conference in Berlin (Oct 2023), German industry leaders noted that bilateral trade has seen “numerous positive results” since EVFTA took effect . German companies have created about 50,000 jobs in Vietnam, reflecting Vietnam’s huge market potential and Germany’s expanded investment post-EVFTA . Such forums encourage firms to tap into EVFTA’s advantages: for instance, German and Vietnamese officials in Berlin urged companies to capitalize on new opportunities and highlighted how Vietnam can serve as a gateway for German firms to access other Asia-Pacific markets via Vietnam’s network of FTAs .

-  New Partnerships in Emerging Sectors: Business matching events are identifying growth areas beyond traditional trade. In Berlin, German and Vietnamese participants pinpointed renewable energy and vocational training as promising cooperation sectors . Vietnam’s need for green energy investment and Germany’s skilled labor shortage (addressed by training Vietnamese workers) were discussed as mutual opportunities fostered by EVFTA ties . Similarly, EuroCham’s Green Economy forums emphasize collaboration in clean technology, circular economy, and sustainable agriculture – aligning EU investor interest with Vietnam’s development priorities under the FTA.

- Addressing Sustainability and Standards: A prominent theme in recent events is preparing businesses for the EU’s high standards. The Vietnam–EU Cooperation Forum 2024 devoted sessions to EU green regulations and how they will affect trade . Panels discussed non-tariff barriers like stringent food safety rules, carbon emissions requirements, and supply-chain due diligence. By sharing “notable cases and advice” , these events help Vietnamese companies learn from success stories and adapt. For example, forum speakers walked through the timeline and impact of the EU’s CBAM carbon levy and new Corporate Sustainability Due Diligence rules . The takeaway for businesses is clear: beyond tariff cuts, compliance with environmental and social standards is crucial. The forums provided guidance on meeting these requirements (e.g. reducing emissions, sourcing legally, ensuring labor welfare) so that exporters can confidently maintain EU market access.

-  Enhanced Business Confidence: These interactions between government and industry appear to be bolstering confidence among European investors in Vietnam. EuroCham’s latest Business Confidence Index (BCI) showed that nearly 71% of EU enterprises have a positive long-term outlook in Vietnam . EuroCham leaders have repeatedly cited EVFTA as a reason for optimism, calling Vietnam a “vivid demonstration” of a successful EU trade partnership . Networking events often highlight such positive sentiment. For instance, at the 2024 cooperation forum, EuroCham’s Chairman Dominik Meichl praised Vietnam’s improved investment environment and noted the EU is now Vietnam’s sixth-largest FDI source with over €28 billion invested, crediting EVFTA despite the pending investment agreement . This feedback loop – where businesses share success and remaining concerns – is influencing policy (Vietnam’s Deputy Minister affirmed Vietnam will continue pro-business reforms to keep this momentum ). In short, recent events have not only informed companies of opportunities but also reinforced mutual confidence in the long-term benefits of EVFTA-driven integration.

Major Industries Benefiting from EVFTA

Certain Vietnamese industries have been at the forefront of EVFTA gains, experiencing increased market access and growth:

- Textiles and Garments: Vietnam’s apparel and textile sector has been one of the biggest winners. With phased tariff reductions, Vietnam’s garment exports to the EU have grown robustly . Key clothing items enjoy reduced or zero duties, boosting competitiveness in Europe. However, to fully benefit, producers are adapting to rules of origin (e.g. sourcing more fabric from Vietnam or EU partners) to qualify for EVFTA rates. Despite those challenges, textiles and footwear exports have seen strong upticks thanks to the agreement .

- Footwear: Vietnamese shoes and leather products have also gained substantially. EU tariffs on many footwear items have dropped (some to 0%), allowing Vietnam – one of the world’s top shoe exporters – to increase shipments. By 2023, Vietnamese footwear exports to the EU were surging, contributing to double-digit export growth . European brands source extensively from Vietnam, and EVFTA gives them cost advantages. Vietnam’s footwear industry, largely foreign-invested, has been quick to leverage the FTA by enhancing quality and meeting EU standards.

- Agriculture and Agro-Food: Agricultural products are a cornerstone of Vietnam’s EVFTA success. Seafood, coffee, rice, fruits, and vegetables now enter the EU with lower tariffs, spurring higher exports . For example, Vietnam’s aquatic products (fish, shrimp) and tropical fruits have grown in popularity in Europe. Major EU importers include the Netherlands, Germany, Italy, and Spain for items like seafood, produce, footwear, apparel, and furniture . These sectors have benefited not only from tariffs but also from cooperation on sanitary standards to meet EU import requirements. The EVFTA also opened a small quota for Vietnam’s rice exports (80,000 tons of duty-free fragrant rice per year), which Vietnamese companies have fully utilized (see Success Stories below) .

- Electronics and Machinery: As a leading exporter of electronics, Vietnam has seen electronics and electrical equipment continue as top exports to the EU . Smartphones and components (one of Vietnam’s largest export categories) already had global demand, but EVFTA helps by removing EU import taxes on these tech products. On the import side, the EU has been exporting more high-tech machinery and equipment to Vietnam . In fact, Europe’s main exports to Vietnam are high-tech goods – e.g. electrical machinery, aircraft, vehicles, and pharmaceuticals – while Vietnam’s main exports to the EU are consumer manufactures and agro-products . This complementary trade structure means industries on both sides benefit: Vietnam’s manufacturing sector gets cheaper inputs and machines from Europe, and in turn Europe sources more finished electronics and appliances assembled in Vietnam.

-  Furniture and Wood Products: Vietnamese wooden furniture is another sector gaining ground in the EU market. Tariffs on many wood products were eliminated, helping Vietnam become a key furniture supplier to Europe. Exports of wood and wooden furniture to EU saw notable growth in 2022–2023 . European buyers are increasingly turning to Vietnam for home furnishings due to competitive pricing and improved adherence to sustainable timber sourcing (important under new EU rules). Trade shows like the annual furniture expo in Ho Chi Minh City facilitate many EU–Vietnam deals in this sector.

-  Automotive and Motorbikes (Emerging): While not yet a top export, Vietnam’s participation in EVFTA has drawn interest in auto parts and motorbike exports. EU tariffs on Vietnamese motorcycle parts and some motorbikes will gradually reduce, potentially opening a niche for Vietnamese manufacturers. Conversely, Vietnam agreed to cut tariffs on cars from the EU over 10 years; European automakers are eyeing Vietnam’s market, and some have increased showroom presence. Over time, Vietnam’s growing auto/parts industry could integrate more with EU supply chains thanks to the FTA.

In summary, export-oriented manufacturing (textiles, footwear, electronics) and agro-fisheries are the biggest beneficiaries of EVFTA’s market openings . These sectors have seen the highest uptick in EU orders and are actively participating in trade promotion events to further expand their reach. On the investment side, EVFTA’s stronger IP protection and market access have attracted EU investors to high-tech, renewable energy, and green manufacturingprojects in Vietnam , which could benefit industries like clean energy and pharmaceuticals in the long run.

Government Policies and Trade Regulations Affecting EVFTA Implementation

The implementation of EVFTA is closely tied to government policies and evolving trade regulations on both sides. Several key policy developments are shaping how businesses realize EVFTA benefits:

- Vietnam’s Legal and Regulatory Reforms: Vietnam has undertaken numerous reforms to fulfill EVFTA commitments. The government issued detailed tariff schedules to enact its EVFTA tariff cuts (e.g. Decree 116/2022promulgating Vietnam’s special preferential import tariffs for EU goods through 2027) . Vietnam has also upgraded its legal framework for business to align with high-standard FTA commitments on intellectual property, environmental protection, and labor rights . For example, to meet EVFTA’s labor provisions, Vietnam amended its Labour Code in 2019 and pushed ahead with ratifying ILO conventions. By the end of 2022, Vietnam had joined 9 out of 10 fundamental ILO conventions, recently adopting Convention 98 (collective bargaining) and Convention 105 (forced labor) . The only remaining core convention (No.87 on freedom of association) is in progress, showing Vietnam’s effort to honor its labour commitments under EVFTA . These policy steps not only keep Vietnam in compliance with the FTA’s terms but also improve its business climate, thereby encouraging more EU trade and investment.

-  EVFTA Joint Committees and Dialogues: The EVFTA agreement established joint bodies (like the Trade Committee and specialized committees) to oversee implementation. In December 2022, the EVFTA Trade Committee held its 2nd meeting (co-chaired by Vietnam’s trade minister and the EU Trade Commissioner) to review progress . Both sides noted the successful first two years of EVFTA and discussed technical issues for smoother implementation . Topics included updating Protocol 1 on Rules of Origin, resolving bottlenecks in pharmaceutical imports and Vietnam’s rice exports, protecting EU geographical indications, and Vietnam’s ongoing labor reforms . They also addressed sector-specific concerns like special consumption tax on EU alcohol and treatment of EU used/refurbished goods . Additionally, Vietnam’s efforts against IUU (illegal fishing) were raised, as compliance there affects seafood exports to the EU . These committee meetings and the domestic EVFTA Domestic Advisory Groups (which include business associations, unions, and NGOs) are important as they can recommend policy adjustments. For instance, an amendment to ease certain rules of origin or mutual recognition of standards can directly help businesses take better advantage of EVFTA. The strong government-to-government coordination ensures that regulatory hurdles are being actively addressed as the FTA rolls out.

- EU’s New Trade Regulations: On the EU side, recent regulatory changes—especially in sustainability—are impacting EVFTA trade. EU legislation like the Carbon Border Adjustment Mechanism (CBAM) (which initially covers carbon-intensive materials), the EU Deforestation Regulation (EUDR), and the proposed Corporate Sustainability Due Diligence Directive (CS3D) impose stricter import conditions . These policies were not part of the original FTA text but now affect its implementation: Vietnamese exporters of products like steel, coffee, wood, or textiles must ensure compliance (reducing carbon emissions, proving deforestation-free supply chains, etc.) to continue enjoying seamless access. The Vietnamese government, recognizing this, has started issuing guidelines and working with EU partners to help domestic firms adapt. For example, the Ministry of Industry and Trade has disseminated information on CBAM’s reporting requirements (for steel exporters) and encouraged sustainable coffee and wood production to meet EU’s new rules. At the Vietnam–EU Cooperation Forum, officials explicitly provided a roadmap of these EU regulatory changes and urged businesses to upgrade their practices accordingly . In effect, EU’s evolving trade regulations are raising the bar for Vietnamese exports, prompting supportive policies at home (such as green finance initiatives, digital traceability systems for forestry/farm products, etc.) to ensure Vietnam can fully utilize EVFTA preferences in this new context.

- Investment Protection Agreement (EVIPA) Status: Alongside the EVFTA, the EU and Vietnam signed an Investment Protection Agreement (EVIPA) in 2019. However, the EVIPA is not yet in force – it awaits ratification by several EU member states. This delay in implementation of the investment pact has some impact: European investors currently rely on existing bilateral investment treaties or general EVFTA investment provisions, which may offer less comprehensive protections than EVIPA would. Both sides are keen to see EVIPA come into effect to boost investor confidence and two-way investment flows. The European Commission in late 2023 urged EU countries to expedite EVIPA ratification , noting it would complement EVFTA’s success by providing EU investors in Vietnam with greater legal security . Vietnam, for its part, has already ratified EVIPA and is waiting for the EU side. Despite this gap, as mentioned, EU investment into Vietnam has still grown – the EU is Vietnam’s sixth-largest FDI source with ~€28 billion invested – but officials believe the ratification of EVIPA will further accelerate investment. Until then, Vietnam continues to improve its domestic investment laws (e.g. updating the Law on Investment, streamlining business red tape) to assure European companies that their investments are safe and welcomed.

In summary, government actions have been pivotal in translating EVFTA’s commitments into real-world business benefits. Vietnam’s timely issuance of implementing decrees and legal reforms has allowed firms to access tariff cuts and operate in a more transparent environment. Ongoing dialogues tackle technical trade issues as they arise. Meanwhile, both Vietnam and EU are adjusting to new trade policy trends (like sustainability and investment rules) to ensure EVFTA’s smooth and full implementation. Businesses operating under EVFTA should stay informed of these policy updates, as they often directly inform how to maximize the agreement’s advantages or overcome compliance challenges.

Success Stories and Challenges under EVFTA

The EVFTA has led to notable success stories for Vietnamese businesses, though it also comes with challenges that companies must navigate. Below are some examples of achievements enabled by EVFTA, followed by key challenges firms face:

Success Stories

- Agricultural Export Breakthroughs: A standout success has been Vietnam’s rice exports to the EU. EVFTA granted Vietnam a quota of 80,000 tonnes of rice per year at 0% duty, and Vietnamese exporters wasted no time in taking advantage . In 2022, Vietnam exported 94,510 tonnes of rice to the EU, exceeding the quota and far surpassing previous volumes . This was largely high-quality fragrant rice, which commanded an average price of $688/tonne – 41% higher than the average price of Vietnamese rice globally . The premium pricing indicates that Vietnamese rice has improved in quality to meet Europe’s strict standards, and consumers are willing to pay for it. Industry reports noted this as proof that Vietnamese enterprises are “making good use of the EVFTA”, successfully meeting EU requirements and capitalizing on preferential tariffs . Moreover, in just the first four months of 2023, Vietnam’s rice exports to certain EU countries skyrocketed (Netherlands +44%, Poland +68%, Spain +89%, Belgium +149% year-on-year) , demonstrating sustained growth. This rice success story showcases how EVFTA market access, combined with quality upgrades, has unlocked a lucrative niche for Vietnam’s farmers and rice traders in Europe.

- Manufacturing and Supply Chain Gains: Vietnam’s broader export manufacturing has flourished under EVFTA. By 2023, Vietnam had firmly become the top ASEAN exporter to the EU, with export value up ~50% compared to pre-EVFTA . Traditional industries like footwear and apparel have grown, but even higher-end manufacturing is benefiting. For instance, Vietnam’s export of electronics (such as phones and components) to EU has increased, supported by EVFTA tariff removal on tech goods . On the flip side, European manufacturers of machinery and vehicles have seen Vietnam’s import tariffs fall, boosting their sales in Vietnam . This two-way trade growth has spurred job creation and investment. European companies in Vietnam’s supply chain have expanded production to feed exports. The country’s trade surplus with the EU hit $35.2 billion in 2024, the highest surplus Vietnam has with any FTA partner . Notably, the utilization rate of EVFTA preferential tariffs by Vietnamese exporters rose from just 14.8% in 2020 to 35.2% in 2023 . This means over a third of eligible exports are now shipped under EVFTA’s low tariffs – a significant success indicating growing awareness and capacity to use the FTA. The surge in Vietnam–EU trade, described by EU Trade Commissioner Valdis Dombrovskis as a “vivid demonstration” of EVFTA’s success , underscores how effectively many businesses have leveraged the agreement to expand their markets.

- Business Expansion and Investment: Success under EVFTA isn’t only about exports; it’s also seen in investment and partnership deals. European investors have shown heightened interest in Vietnam’s market thanks to the FTA’s opening of services and public procurement. Sectors like renewable energy have attracted major EU investments – several European energy firms entered Vietnam’s solar and wind power industry after EVFTA reinforced investment protections and Vietnam’s commitment to sustainability . High-tech and automotive partnerships are also developing (e.g. a famous European automaker started EVFTA-enabled exports of Vietnam-assembled electric buses to EU markets). Additionally, some Vietnamese companies have successfully expanded distribution in Europe. For example, Vietnam’s leading dairy producer was able to get its milk products into European supermarkets post-EVFTA, and an iconic Vietnamese coffee brand established a presence in EU retail chains – these moves were facilitated by reduced tariff barriers and better trademark protection under EVFTA (ensuring brand recognition and safety standards). Such success stories of brand penetration illustrate the agreement’s role in helping Vietnamese firms move up the value chain and directly reach EU consumers.

- Trade Compliance Wins: An interesting case study in navigating trade rules is Hoa Phat Group, a top Vietnamese steel producer. When the EU imposed anti-dumping duties on certain steel products from various countries, Hoa Phat managed to secure an exemption for its hot-rolled coil exports to the EU. In early 2025, it was reported that Hoa Phat’s HRC products would not be subject to EU anti-dumping tariffs . This exemption was achieved by demonstrating compliance with fair trade practices and cooperating with EU investigations. It’s a success in that Hoa Phat protected its access to the EU market (where EVFTA had dropped the base tariffs to 0%) by meeting the EU’s regulatory requirements. The outcome “reflected the firm’s legal expertise in handling international trade regulations”, and it ensures that downstream Vietnamese businesses using Hoa Phat steel can export to the EU without worrying about additional duties . This example shows a Vietnamese company not only benefiting from EVFTA’s low tariffs, but also adeptly overcoming trade remedy challenges – an encouraging sign of maturation in Vietnam’s trade compliance capabilities.

Challenges for Businesses

- Complex Rules of Origin (ROO): One of the most cited challenges is meeting EVFTA’s rules of origin to qualify for tariff preferences. To enjoy 0% or reduced tariffs, products must contain a certain percentage of ASEAN/EU content or undergo specific processing in Vietnam or the EU. Many Vietnamese industries struggle with this due to their supply chain structure. For instance, the textile-garment sector traditionally imports most fabric from non-EU countries like China, which can disqualify the final clothing product from EVFTA perks. While the agreement allows cumulation with South Korea (thanks to an EU-Korea FTA) so Vietnamese firms can use Korean materials , the cost of those materials is high . In practice, even with 0% EU tariff, importing expensive inputs from Korea or the EU can negate cost advantages . As a result, many exports find it difficult to meet the strict origin criteria for EVFTA and cannot fully utilize the tariff cuts . Complicated administrative procedures to certify origin (issuing EUR.1 certificates, etc.) also pose obstacles, especially for small exporters . The Vietnamese government and industry groups are aware of this and have been holding workshops on ROO compliance, and encouraging the development of local supporting industries (e.g., weaving, dyeing, plastic components) to raise local content. Still, in the short term, rules of origin remain a top challenge, causing some firms to miss out on EVFTA benefits if they can’t document sufficient EU/Vietnam content in their goods .

- Stringent Standards and Regulations: The EU is a highly demanding market with rigorous standards for safety, quality, and sustainability. Under EVFTA, Vietnam agreed to meet these standards, but for many companies this has been a learning curve. Agricultural and food exporters face strict Sanitary and Phytosanitary (SPS) measures – only producers who invest in quality control can export to the EU. As an example, seafood exporters must tackle the EU’s requirements on illegal fishing (Vietnam is working to lift the EU “yellow card” warning on its fisheries). Documentation and testing for every shipment increase costs. At a 2024 seminar, experts noted that exporting via official channels to the EU entails “stricter documentation and higher taxes and fees” (compared to informal or closer markets), but these also ensure better quality control and reputation . Complying with European technical standards (TBT) – whether for electrical appliance safety, chemical content in textiles (REACH regulations), or CE marking for machinery – can be daunting for Vietnamese SMEs. Many firms have had to upgrade facilities and obtain new certifications. While this improves their competitiveness long-term, the compliance costs are significant and some smaller companies struggle to afford them. Additionally, the new EU green regulations (CBAM carbon tariffs, deforestation-free supply chains) require businesses to overhaul sourcing practices and possibly invest in cleaner technology. Navigating this complex regulatory landscape is a challenge that goes hand-in-hand with EVFTA implementation.

- Limited Awareness and Capacity: Not all Vietnamese businesses, especially SMEs, are fully aware of EVFTA’s provisions or how to utilize them. A survey by the Vietnam Chamber of Commerce and Industry found that while awareness of EVFTA is relatively higher than other FTAs, still only about half of firms reported they have seen specific benefits from the deal . This implies many companies have not yet accessed or understood the advantages available. Challenges here include information gaps (knowing tariff schedules, procedures, etc.) and capacity constraints (lack of in-house expertise to handle export paperwork or language barriers in contacting EU clients). The government and business associations are trying to bridge this via outreach and training. However, smaller exporters often continue to sell through intermediaries and may miss the direct benefits of EVFTA preferences. Strengthening enterprises’ ability to meet EU demand (both in quantity and quality) is an ongoing challenge. For example, meeting large orders can be tough for small producers, and some Vietnamese industries face production limits (due to labor skills, technology, or capital) which prevent them from fully exploiting the new market access. In short, uneven capacity among businesses means EVFTA’s impact is strong in leading companies and sectors, but many smaller firms are still catching up in terms of readiness.

-  Competition and Market Adaptation: With EVFTA reducing barriers, Vietnamese firms now compete more directly not only with domestic rivals but also with ASEAN neighbors (like Thailand, Malaysia) who seek EU market share, and with EU imports at home. For instance, EU agricultural goods (wine, dairy, meat, etc.) now enter Vietnam at lower tariffs, increasing competition for local producers in those segments. While Vietnamese consumers benefit from more choices, local businesses must adapt to uphold their market position. Additionally, European companies in Vietnambenefit from EVFTA in government procurement and services – domestic companies might find it harder to win contracts against well-resourced EU firms unless they improve. On the export side, EVFTA’s benefits could be eroded if, say, the EU strikes similar FTAs with other countries (granting them equal or better market access). Vietnamese exports of products like footwear or apparel also face competition from countries like Bangladesh or Cambodia (which have their own trade agreements or GSP privileges). Thus, Vietnamese businesses must continuously innovate, build brand value, and improve efficiency to maintain the edge EVFTA initially provided.

- Macroeconomic and External Challenges: Broader issues have also posed challenges during EVFTA’s initial years. The agreement came into force amid the COVID-19 pandemic, and global supply chain disruptions in 2020–2021 meant many businesses couldn’t immediately capitalize on it. Shipping costs spiked and order cancellations occurred, slowing the EVFTA uptake somewhat. Then in 2022–2023, inflation and war in Ukraine affected EU consumer demand. In fact, Vietnam’s exports to the EU dipped in 2023 (down about 6.8% in value) due to weaker demand and price factors , and specific sectors like seafood saw a steep decline of nearly 29% in EU sales in 2023 . These external headwinds highlight that an FTA is not a guarantee of growth every year – global market conditions still dominate. Businesses face the challenge of volatility: they must be agile in responding to fluctuating demand, currency exchange swings, and changing logistics costs. Those that survived the recent turbulence by diversifying products or markets are better placed to benefit when conditions improve. The good news is that by late 2024, signs indicated a recovery, and many Vietnamese sectors remain optimistic for 2025, expecting to regain growth momentum in the EU market as conditions stabilize 

Despite these challenges, the overall trajectory of the EVFTA remains positive. The success stories illustrate that with the right strategy and support, businesses can thrive under the EVFTA, entering new markets or expanding their footprint in Europe. Meanwhile, the challenges have prompted proactive measures: companies are investing in compliance and supply chain adjustments, and the government is negotiating and problem-solving through EVFTA committees. As Vietnam and the EU continue to work through implementation issues (and as supporting agreements like the EVIPA come on board), businesses that stay informed and adaptable are likely to find the EVFTA a long-term game-changer. The myriad networking events, forums, and trade fairs being held are part of this adjustment process – helping companies learn from each other’s experiences (both successes and setbacks) and ensuring that the EVFTA delivers on its promise of mutual economic growth .

Sources:

1. Vietnam Trade Promotion Agency & EuroCham event releases – Vietnam-EU Cooperation Forum 2024 highlights policy dialogue and sustainable trade focus .

2. VietnamPlus/Vietnam News Agency – Reports on EVFTA’s impact on trade and industry developments .

3. Việt Nam News – Seminar coverage on expanding exports to the EU under EVFTA .

4. VietnamPlus – Vietnamese firms’ business matching in Germany (Oct 2023) with EVFTA outcomes .

5. Vietnam Investment Review – Expert interview on four years of EVFTA: trade gains and rules-of-origin challenges .

6. VietnamPlus – Vietnam becomes top ASEAN exporter to EU, EVFTA boosts exports ~50% in four years .

7. VietnamPlus – CIEM report: 5-year EVFTA review, export growth in key sectors, legal reforms undertaken .

8. VietnamNet – Vietnamese rice exports under EVFTA: quota usage and high price premium in EU .

9. Ministry of Industry and Trade – EVFTA Trade Committee 2nd meeting outcome: addressing ROO, GIs, IUU fishing, etc. .

10. VietnamPlus – Vietnam FoodExpo 2024: EU guest of honor, business matching sessions for food exporters .

11. VietnamPlus – Hoa Phat steel exports not subject to EU anti-dumping duties (trade remedy success) .

12. Việt Nam News – Vietnam’s implementation of labor commitments for EVFTA (ratifying ILO conventions) .