Five years since its entry into force, the EU-Vietnam Free Trade Agreement (EVFTA) has catalyzed nearly $300 billion in two-way trade, establishing Vietnam as the EU’s top trading partner in ASEAN and its 16th largest globally, according to the European Chamber of Commerce in Vietnam (EuroCham).

In an era marked by rising global tensions and trade fragmentation, the EVFTA stands as a testament to inclusive, rules-based cooperation – one rooted in shared values, sustainability, and long-term strategic alignment, the EuroCham said in a press release issued on August 1.

Signed on 30 June 2019 and entering into force on 1 August 2020, the EVFTA is one of the EU’s most comprehensive and ambitious trade agreements with a developing nation. It has already eliminated over 70% of tariffs on various goods, with the remaining reductions – up to 99% – to be phased in over the coming years.

 Beyond tariff liberalization, the agreement also improves market access, strengthens intellectual property protection, and enhances regulatory transparency.

In fact, since its implementation, EU-Vietnam trade has grown significantly. Preliminary data from Vietnam’s National Statistics Office shows that EU-Vietnam two-way trade reached $298 billion between August 2020 and May 2025 alone. This five-year figure accounts for nearly 40% of the $815 billion in cumulative trade recorded over 30 years of economic and trade cooperation since 1995 – a powerful proof of the EVFTA’s catalytic impact.

Vietnam now leads first in ASEAN and 16th in the world for goods trade with the EU, exporting everything from electronics and textiles to furniture and agri-food products. In return, Europe is Vietnam’s third largest exporting destination and fourth largest source of imports, supplying high-tech machinery, vehicles, pharmaceuticals, and green technologies.

Beyond tariff reductions, the EVFTA has opened new doors for European businesses to tap into Vietnam’s rapidly growing domestic market – from public-private partnerships to incentivized foreign direct investment.