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EVFTA boosts Vietnam’s exports to Europe

EVFTA has significantly boosted Vietnam's exports to Europe. Illustration photo: N.H

A survey on the impact of the Vietnam-EU Free Trade Agreement (EVFTA) after four years of implementation, announced by the European Chamber of Commerce in Vietnam (EuroCham) on July 31, showed that the EVFTA has significantly boosted Vietnam's exports to Europe, soaring from € 35 billion in 2019 to more than € 48 billion euros in 2023. The growth is evident in sectors such as electronics, textiles, footwear, agriculture and seafood. Meanwhile, EU exports to Vietnam increased from € 11 billion euros to €11.4 billion euros in the same period.

The EVFTA has strengthened Vietnam's attractiveness to European investors, with the European Union (EU) pouring € 28 billion euros into 2,450 projects, demonstrating confidence in Vietnam's potential.

Notably, EU investors added €800 million in foreign direct investment (FDI) between January and September 2023, bucking the global trend of declining FDI.

EuroCham Vietnam Chairman Dominik Meichle stressed that the EVFTA has created new opportunities for European businesses in Vietnam. However, he said that the EuroCham survey also showed that many challenges.

“As we enter the fifth year of the agreement, it is important to continue efforts to simplify procedures, harmonize standards and ensure everyone understands how the EVFTA works,” the Chairman of EuroCham Vietnam recommended.

EuroCham is committed to working with stakeholders to streamline regulatory compliance, achieve more widely recognized international standards and develop a variety of educational programs to raise comprehensive awareness of the EVFTA. EuroCham will also continue to push for further tariff reductions and simplification of customs procedures.

EuroCham is actively supporting the full ratification of the EU-Vietnam Investment Protection Agreement (EVIPA) as an important step to “unlock” the full potential of the EVFTA to attract foreign direct investment.

EVFTA is a new generation free trade agreement that helps connect Vietnam with the economies of the tweenty seven EU member states, with commitments in many areas and a higher level of commitment than most FTAs ​​that Vietnam has signed.

In 2023, trade turnover between Vietnam and EU member countries will reach US $72.3 billion, down 5.3% compared to 2022, with a trade surplus of US $34.3 billion. Vietnam's export turnover to EU countries in 2022 reached US $ 46.8 billion, up 16.7% compared to 2021. Import turnover from EVFTA countries reached US $15.4 billion, down 8.6% compared to 2021. Many important Vietnamese products exported to the EU continued to increase, such as seafood up 29.5%, vegetables and fruits up 34.2%, footwear up 49.7%, textiles up 43.4%, wood and wood products up 85.2%... The main export markets are the Netherlands, Germany, Italy, Belgium, France...

According to statistics from the General Department of Customs, in June 2024, the export turnover of goods to the EU increased by 7.85% compared to May 2024 and increased by 19.54% compared to June 2023, reaching over US $4.28 billion. In the first six months of 2024, the total export turnover of goods to the EU reached over US $ 24.69 billion, an increase of 15.37% over the same period in 2023.

In the first six months of 2024, exports to most key markets in the EU increased in value compared to the same period in 2023.

In particular, the largest export to the Netherlands market reached over US$ 6.14 billion, accounting for 24.88% of the total export turnover of goods to the EU, an increase of 27.12% over the same period in 2023; in June 2024 alone, the turnover reached nearly US $1.15 billion, an increase of 13.59% over May 2024 and an increase of 35.46% over June 2023.

Ranked second is the German market with nearly US$ 3.82 billion, accounting for 15.46%, a slight increase of 3.27%; in June 2024 alone, the turnover reached over 634.96 million USD, an increase of 7.73% compared to May 2024 and an increase of 7.13% compared to June 2023.

Ranked third is the Italian market with nearly US $2.53 billion, accounting for 10.23%, an increase of 9.23%; in June 2024 alone, the turnover reached 385.97 million USD, an increase of 0.6% compared to May 2024 and an increase of 4.27% compared to June 2023.

Exports to the Spanish market reached nearly US $1.97 billion, accounting for 7.96%, an increase of 20.68%; In June 2024 alone, the turnover reached US $ 308.19 million, an increase of 7.51% compared to May 2024 and an increase of 3.38% compared to June 2023.