EVFTA boosts Vietnam – EU trade to nearly 300 bln USD in five years

The EU–Vietnam Free Trade Agreement (EVFTA) has produced strong results just five years after coming into force, driving bilateral trade to nearly 300 billion USD, positioning Vietnam as the EU’s top trading partner in ASEAN and its 16th largest worldwide, the European Chamber of Commerce in Vietnam (EuroCham) reported on August 1.

Economic impacts and standard harmonization

Signed on June 30, 2019, and officially effective from August 1, 2020, the EVFTA is one of the most comprehensive and ambitious FTAs the EU has ever signed with a developing country. The trade deal has eliminated over 70% of tariffs on imports and exports between the two sides, with nearly 99% of remaining tariffs set to be gradually removed in the coming years.

Beyond tariff reductions, the EVFTA has enhanced market access, strengthened intellectual property protection, and promoted regulatory transparency, making it easier for businesses of the two sides to fully capitalise on trade opportunities. In addition to its direct economic impact, the EVFTA has also catalyse long-term alignment in values and standards between Vietnam and the EU - an element that Chairman of EuroCham Bruno Jaspaert emphasised as key to the agreement’s success.

Amid rising geopolitical tensions and a growing wave of unilateral tariff measures, the EVFTA stands out as a symbol of trust and cooperative spirit. August 1 of this year not only marks the agreement’s fifth anniversary in effect, but also represents a pivotal moment in the global trade situation.

Jaspaert stressed that as the world grapples with the complexities of new trade agreements and hesitates in response to reciprocal tariff policies from the US, the EVFTA offers clarity and stability as its transparent provisions and mutual commitments between Vietnam and the EU reflect a shared belief that harmonised standards and open markets are the path to sustainable growth and long-term prosperity.

A passion fruit processing line at Dong Giao Food Export JSC (Photo: VNA)

According to preliminary data from the National Statistics Office of Vietnam, in less than five years, Vietnam–EU bilateral trade has reached 298 billion USD, accounting for nearly 40% of the total accumulated trade value between the two sides since they began economic cooperation in 1995 — a clear testament to the EVFTA’s catalytic role in expanding market access and deepening bilateral economic ties.

Jaspaert added that the EU remains one of Vietnam’s most stable and sustainable economic partners. If both parties eliminate barriers and prioritise effective implementation, the EVFTA will show the world that bilateral FTAs can create the real value and long-term benefits for the parties involved.

EuroCham and the European business community are committed to working closely with Vietnam during this pivotal period, considering Vietnam their second home, and are dedicated to supporting the country in realising its long-term growth goals.

Seizing opportunities, overcoming barriers

Beyond tariff incentives, the EVFTA serves as a key for European businesses to better access Vietnam’s rapidly growing domestic market, from favourable FDI opportunities to cooperation in public-private partnership (PPP) projects. With a population of 100 million and a workforce exceeding 55 million, Vietnam is gradually emerging as a strategic ecosystem for European enterprises to integrate more deeply into new supply chains and expand their long-term market.

In areas such as sustainable agriculture, digital transformation, and green energy, Europe’s expertise complements Vietnam’s resource base and development priorities. Notably, European innovations in digital agriculture and green technologies have contributed to improving productivity, quality, and traceability in key sectors like agriculture, food, and aquaculture, where Vietnam is already a major supplier to the European market.

The EVFTA is also supporting Vietnam’s efforts to position itself as a reliable manufacturing and export hub amid the increasing fragmentation of global supply chains, according to VNA.

Five years on, the EVFTA has proven to be an effective framework for cooperation, helping strengthen trust, boost trade, and deliver tangible benefits for both sides, Guerrier said, stressing that the EU remains committed to partnering with Vietnam on its journey toward a green and sustainable future.

According to the World Trade Organization (WTO), there are currently 328 FTAs in effect worldwide, a sharp increase from just 98 in 2000. Vietnam has inked 17 FTAs, underscoring its central role in regional and global trade networks.

MoU highlights Japan-Vietnam cooperation in research and disease control

Strengthening epidemiological surveillance, vaccine development, and response to both existing and emerging diseases are key areas of cooperation outlined in a Memorandum of Understanding (MoU) signed on August 1 in Ho Chi Minh City between the Pasteur Institute in Ho Chi Minh City and Japan’s Nagasaki University.

According to Associate Professor, Dr. Nguyen Vu Trung, Director of the Pasteur Institute in Ho Chi Minh City, the MoU commits both sides to a wide range of practical and meaningful activities, including joint scientific research, co-organization of workshops and conferences, student exchanges, academic information and research document sharing. The two institutions will also jointly develop specific programs, research topics, and projects in the fields of scientific research, training, and disease prevention.

Upon addressing the event, Nguyen Ngo Quang, Director General of the Department of Science, Technology and Training under the Ministry of Health, called on the Pasteur Institute to promptly devise a first-year action plan focusing on immediately actionable items such as short-term expert exchanges, bilateral workshops, and joint research group formation.

He also accentuated the need for the Institute to work closely with its counterparts at Nagasaki University to propose potential research projects, formalize implementation agreements for each activity, and actively seek funding from international research support programs and bilateral or multilateral donors to ensure long-term financial sustainability for cooperation, cited VOV.

At the MoU signing ceremony (Photo:VNA)

ONO Masuo, Consul General of Japan in Ho Chi Minh City, underscored the critical role of preventive medicine in stopping the emergence and spread of infectious diseases, protecting public health, and safeguarding social stability and prosperity.

He expressed hope that the MoU between the Pasteur Institute and Nagasaki University would contribute to improving infectious disease control in Vietnam and globally.

With nearly 135 years of history, the Pasteur Institute in Ho Chi Minh City is one of Vietnam’s oldest and most prestigious institutions in public health and scientific research. Its core mission has long combined scientific inquiry and professional training with efforts to safeguard and improve community health.

Nagasaki University (Japan) is also one of the country’s leading institutions in education and research, with a strong focus on tropical medicine and infectious diseases. Since 2004, Nagasaki University and the Pasteur Institute in Ho Chi Minh City have cooperated in research and training.

The signing of this MoU has helped deepen scientific and health ties between Vietnam and Japan, while opening new opportunities to strengthen professional capacity and practical application for the benefit of regional and global public health.

Cinema - strategic communication channel for Vietnamese tourism

Within the framework of the 2025 Da Nang Asian Film Festival taking place in early July, the film "Love in Vietnam" was officially released, marking a new beginning for the wave of exploiting Vietnamese tourism through Bollywood cinema - one of the largest film production centers in the world.

The film features attractive scenes of Da Nang, Da Lat, Ninh Binh, Cao Bang, and Ha Long Bay, with 75% of its footage shot in Vietnam.

According to statistics, Vietnam welcomed 501,000 Indian visitors in 2024, nearly three times higher than in 2019 – the pre-COVID-19 period. In just the first six months of this year, 337,500 Indian tourists arrived in Vietnam, an increase of over 40% compared to the same period last year.

Sharing at a recent meeting with leaders of the Ministry of Culture, Sports and Tourism, Rahul Bali, the director and main producer of “Love in Vietnam”, said that Vietnam is a wonderful country with beautiful nature, friendly people, and rich cuisine. The film production process left a deep emotional impression. In August 2025, another Bollywood project titled “Silaa” is scheduled to begin filming in Vietnam. This will be the first Indian film to feature scenes in Son Doong – the world’s largest cave – and many other famous destinations such as Ha Long, Ninh Binh, Hoi An, and Da Nang.

The expressive way of the “seventh art” holds particular appeal for tourists. Many destinations around the world have become tourism hotspots thanks to the wide-reaching influence of famous films.

In Vietnam, the relationship between tourism and cinema is also increasingly acknowledged. For instance, following the release of the film “Indochine”, many places such as Ha Long Bay (Quang Ninh), Thai Hoa Palace, Tu Duc Tomb (Hue), and Tam Coc–Bich Dong (Ninh Binh) began attracting more European tourists. In particular, the success of the blockbuster “Kong: Skull Island” helped elevate places like Ha Long Bay, Phong Nha–Ke Bang National Park, Tam Coc, and Van Long to stardom on the Vietnamese tourism map.

International tourists visit Tam Coc, Ninh Binh. (Photo: NDO)

According to a survey conducted by Booking.com, up to 55% of Vietnamese Gen Z are willing to visit landscapes they have seen in films or television shows.

Nguyen Trung Khanh, Chairman of the Vietnam National Authority of Tourism, emphasised that cinema is identified as an effective communication channel to spread the image of Vietnam’s land, people, and culture, thereby attracting high-quality tourists and elevating the national tourism brand. In recent years, the tourism sector has taken specific steps to concretise the strategy of tourism promotion through cinema, including: Vietnam’s Tourism–Cinema Promotion Program in the US in September 2024; the seminar “Vietnam – a dynamic Asian market and new destination for international film crews”; and the Vietnamese Cinema Night program during the 2025 Cannes Film Festival in France.

To make Vietnam a highlight on the global tourism-cinema map, the authority will focus on implementing a tourism-cinema linkage strategy, aiming to build a favourable legal environment, enhance the capacity of the film production support ecosystem, promote public-private and international cooperation, and actively utilise images of destinations that appear in films for tourism marketing efforts.

Many experts believe that in order to attract more major international film crews to Vietnam, in addition to being ready to support site surveys, domestic service partner connections, and ensuring safety and security, the country must also adopt greater flexibility, transparency, and openness in its licensing process, as well as offer tax and fee incentives for film crews.

The tourism sector is also planning to organize tourism promotion forums linked to cinema in India, starting with a roadshow to promote tourism in major cities with many Bollywood filmmakers, scheduled for September 2025.

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