Vietnam is the European Union's largest trading partner in ASEAN. The EU-Vietnam free trade agreement (FTA), signed in 2019 and in force since August 2020, aims to reduce tariffs and promote trade in goods and services.
Between 2019 and 2024, total trade between the EU and Vietnam rose from US$49.3 billion to US$72.5 billion, a 47% increase. Vietnamese exports to the EU grew by 58%, while EU exports to Vietnam increased by 10.5%. Vietnam is now the EU's third-largest supplier of goods, while the EU ranks as Vietnam's 17th export market.
Fruit and vegetables are among Vietnam's main agricultural exports to Europe, benefiting from early access under the agreement. They represent around 10% of Vietnam's total exports to the EU. Meanwhile, European agricultural products such as wine still face tariffs of up to 50%, which are scheduled to be phased out by 2027.
The trade balance remains heavily in Vietnam's favour, with the EU's deficit in goods trade almost doubling since 2019. However, the EU maintains a surplus in services, particularly in transport and telecommunications.
Strict rules of origin under the agreement limit the risk of Chinese goods entering the EU via Vietnam. European exporters expect more opportunities once tariffs on agricultural products are fully lifted in 2027.
Source: Upply