The European Union-Vietnam Free Trade Agreement (EVFTA) has yielded positive results for bilateral trade between the two sides over the past four years, the Voice of Vietnam (VOV) has reported.

However, Vietnamese businesses continue to face challenges due to rising costs and intense competition, according to the national radio.

It quoted the Ministry of Industry and Trade as reporting that two-way trade between Vietnam and the EU reached $45.2 billion in the first eight months of 2024, a 15.8% increase from the same period last year. This positive trend is expected to continue for the remainder of the year.

Ms. Dao Thi Bao Linh, deputy director of the ministry's Industry and Trade Information Center, attributed the growth to reduced tariffs, changes in global development strategies, and the benefits brought about by the EVFTA.

Despite Vietnam's relatively high export volume, it has yet to secure large export orders on par with China, Malaysia, and Thailand.

Mr. Tran Ngoc Quan, Vietnam's Trade Counselor in the EU, was quoted by the national radio as  highlighting the disruptions caused by the COVID-19 pandemic and the Russia-Ukraine conflicts. These factors have led to port connectivity issues, human resource shortages, and increased transportation costs due to detours and rising shipping and insurance costs.