99% of Vietnamese exports to the EU enjoy zero tariffs

According to data from the Department of Viet Nam Customs and the National Statistics Office (NSO), total trade between Viet Nam and the European Union (EU) exceeded USD 900 billion from 1995 through June 2026. In the six years since the EU-Viet Nam Free Trade Agreement (EVFTA) entered into force (August 2020-June 2026), bilateral trade reached USD 383.8 billion, accounting for 42.6% of total trade over the entire period, underscoring the agreement's increasingly important role in strengthening bilateral economic ties.

The EVFTA has not only driven trade growth but also strengthened business confidence, helping reshape Viet Nam-EU relations into a more stable, long-term, and effective partnership.

According to EuroCham's Business Confidence Index (BCI) survey for the second quarter of 2026, 55% of European businesses identified Viet Nam as either their operational hub or a key growth market, while 22% viewed the country as an important link in their regional manufacturing supply chains, underscoring Viet Nam's rising strategic importance in Asia.

Businesses have also made effective use of the EVFTA's tariff preferences, generating tangible benefits. Around 50% of European companies have utilized the agreement's preferential tariffs, with 33% applying them to at least 20% of their trade value and nearly 20% to more than half of their transactions. As many as 66% reported measurable financial gains, most commonly saving between 5% and 15%, while 11% achieved savings exceeding 30%. The benefits have been most evident in trade, logistics, and consumer goods, helping reduce costs, expand market share, and strengthen supply chain services.

Tariff elimination expands export opportunities

Entering the seventh year of EVFTA implementation, the EU has completed its tariff reduction commitments, with 99% of Vietnamese exports to the bloc now eligible for duty-free treatment. This provides significant opportunities for key export sectors, including electronics, textiles and garments, footwear, wood products, agricultural products, and machinery. Meanwhile, Viet Nam continues to implement its tariff reduction schedule for imports from the EU, with full implementation expected by 2030.

Trade performance in the first six months of 2026 maintained strong momentum, with total bilateral trade reaching USD 41.4 billion, including USD 31.8 billion in exports and USD 9.7 billion in imports, resulting in a trade surplus of approximately USD 22 billion, surpassing the surplus recorded for the whole of 2019, before the EVFTA entered into force.

However, bilateral trade should be viewed as balanced and complementary. High-tech products, machinery, and pharmaceuticals from the EU are helping improve Viet Nam's productivity and the quality of economic growth, while Viet Nam's key export products continue to play an important role in EU supply chains and markets.

There remains significant potential for deeper cooperation, particularly in technology, equipment, and high-value-added solutions. The EU currently accounts for around 12% of Viet Nam's total exports, while its share of Viet Nam's imports stands at only about 4%, highlighting ample room to expand trade in a more balanced and sustainable manner.

To maximize the benefits of the EVFTA, economists recommend that Viet Nam continue to accelerate administrative reforms, simplify procedures, and reduce compliance costs. These measures are considered essential to translating the agreement's commitments into tangible benefits, while enhancing the country's competitiveness and the quality of economic growth.