Five years after the EU-Việt Nam Trade Agreement was signed, Julien Guerrier, EU Ambassador to Việt Nam looks at the progress made, and challenges faced, as well as ways to further unlock its full potential to deepen cooperation between the EU and Việt Nam

August 1, 2025, marks the fifth anniversary of the EU-Việt Nam Trade Agreement, the EVFTA. Five years on, the EVFTA stands as a resilient, ambitious and mutually beneficial partnership, delivering results, driving transformation, and paving the way for deeper EU-Việt Nam cooperation.

The anniversary is a chance to reflect on progress, acknowledge challenges and look to the future with the ambition to deliver fully on the potential of the agreement.

A flagship and ambitious FTA for a strategic, trusted partnership

The EU-Việt Nam FTA, or EVFTA, was the first FTA of the European Union (EU) with a leading economy in South and Southeast Asia (excluding Singapore). It is also one of the EU’s most ambitious trade agreements with an emerging economy, eliminating 99 per cent of tariffs. Beyond tariff reductions, it provides a strong legal and economic framework that supports growth, encourages investments, and promotes mutual benefits for both sides.

The EVFTA has stood the test of time and proven its resilience, having withstood major global challenges like the COVID-19 pandemic, the territorial violation of other countries, and current geopolitical uncertainties. It stands as a clear symbol of the EU’s commitment to strong, resilient, and rules-based trade with a key ASEAN partner for the EU.

Impressive results in five years – but balance is needed

The trade and investment figures show relevance and success: since the EVFTA entered into force on August 1, 2020, trade in goods reached over 64 billion euros in 2024. Trade in services has been growing to 8.4 billion euros. And EU investment grew to 10.7 billion euros.

Making the most of the EVFTA is the obvious starting point. This means that implementation matters: it is necessary to address the remaining barriers for real preferential access for EU exports and investment. And we should also avoid introducing new barriers that go against the spirit of the FTA, as they risk undermining the benefits of tariff elimination.

Thanks to the EVFTA, Việt Nam improved its competitiveness as compared to its neighbouring countries, which are now trying to catch up on the benefits they see of the Agreement of Việt Nam with the EU. On top of the tariff elimination, the EVFTA also offers an incentive for FDI (EU and non-EU) as Việt Nam becomes an even more attractive place to invest and access the EU market, and contribute to the development of the country.

EU businesses need a transparent, predictable, and welcoming environment to invest and grow even more, in and with Việt Nam.

We are starting to see progress in the pharmaceutical sector, where the approval process for new medicines is becoming faster. This is good news for Vietnamese patients and also for European companies that will bring new, innovative, and safe medicines from the EU that so far are not available in Việt Nam. We hope to see similar improvements in other sectors.

For the EU, effective implementation of the Trade and Sustainable Development chapter is a core part of the EVFTA. This goes for every aspect of sustainability, be it about labour matters, the climate, or the environment.

I have seen Việt Nam’s creativity and capacity to solve problems quickly and efficiently. This is crucial in times like the ones we are living through, because a balanced and reciprocal partnership is beneficial for both sides and it will lay the foundation for our future cooperation and economic growth.

Unlocking the EVFTA’s full potential

The EU and Việt Nam stand for open and rules-based trade. Everything we can do to make the EVFTA deliver fully and effectively adds credibility to our commitments. With the EVFTA, we are keeping openness, stability and predictability high. We offer options and space to our companies.

We understand businesses need clarity and predictability before they take long-term decisions about long-term investments. And because businesses have every interest in the success of Việt Nam, every year EuroCham Vietnam offers its best knowledge of what change will make a really big difference for businesses and at the same time help Việt Nam achieve its growth, its development and its technological ambitions. This guides us when implementing the EVFTA, but also helps us look at the future.

We see the potential for more, in many areas. Much depends on where we want Việt Nam to stand in five or ten years. This 5th anniversary of the EVFTA is therefore not only a moment for looking back, but also the moment for looking forward at the future opportunities that are there for Việt Nam and EU business in Việt Nam.

Partnering for Việt Nam’s transformation – a forward-looking trade agenda

The EVFTA is not the final step – it is the foundation. The EU and Việt Nam should jointly explore deeper cooperation in strategic sectors, including semiconductors and digital communication networks, critical raw materials and renewable energy, transport and logistics, among others, with a shared objective of strengthening economic resilience and diversification.

Việt Nam is carrying out deep administrative reforms and the country has high economic, development, and reform ambitions. This should make Việt Nam more efficient, mobilise new sources of growth, increase productivity and attract more European investors. The aim is to create opportunities in new sectors and bring-in modern technologies. At the same time, international and domestic investment can also play a big role in driving growth and innovation.

The EU is a trusted, safe and high-quality partner to support Việt Nam in all these changes, for the green transition, for infrastructure and energy development, a digital economy, and ambitions in high-tech sectors. EU companies stand ready to contribute as secure, reliable and trusted partners to Việt Nam’s strategic projects.

Upgrading the broader EU-Việt Nam relationship should deliver and build on the full and effective implementation of the EVFTA, and it could thus become the moment for setting an ambitious, robust, and balanced trade and investment agenda, taking us forward.

Happy birthday to the EVFTA!