EVFTA powers Vietnam’s trade rise, but more reforms needed: Ambassador

Ambassador Nguyen Van Thao speaks at an event named “Meet Vietnam” in Brussels on February 21, 2024. (Photo: VNA)

Describing the deal as a landmark in bilateral ties, Ambassador Nguyen Van Thao noted that despite global headwinds, it has propelled Vietnam to the top of the EU’s trading partners in Southeast Asia and the EU to Vietnam’s fourth largest globally, with electronics, apparel, and footwear driving the nation’s climb up the global value chain. He also highlighted the agro-forestry-fisheries sector’s growing presence in the EU market and its broad socio-economic benefits, especially in rural areas.

Despite these headwinds, the deal has proven highly effective, pushing Vietnam to the top of the EU’s trading partners in Southeast Asia and the EU as Vietnam’s fourth largest trading partner globally, with electronics, apparel, and footwear driving the country’s ascent in the global value chain.

The Ambassador placed particular emphasis on the agro-forestry-fisheries sector, highlighting the robust growth of Vietnamese agricultural and seafood products in the EU market. “When we are able to boost exports of these products, it not only affirms Vietnam’s unique strengths, but also shows that we are not in direct competition with the EU in these areas. More importantly, these are products with far-reaching impacts on socio-economic development, particularly in rural areas,” he stressed.

However, according to Ambassador Nguyen Van Thao, there is still considerable room for growth. Although the past five years have brought encouraging results, Vietnam needs to do more to fully harness the advantages of the EVFTA. Within ASEAN, only Vietnam and Singapore have a free trade agreement with the EU, and Vietnam can fully seize this “golden” period to assert its position and secure a strong foothold in this highly demanding yet promising market.

In addition to its role in boosting exports, the EVFTA also opens a broad gateway for attracting high-quality investment from Europe into Vietnam. This will be a key factor in helping the Vietnamese economy develop more sustainably and adapt more effectively to global trends such as climate change, green transition, digital transformation, and rising environmental standards.

The Ambassador expressed confidence that, with the established foundation of cooperation and the strong commitment from both sides to pursuing free, fair, and rules-based trade, the EVFTA will remain a pivotal tool in advancing the Vietnam–EU strategic partnership in the years ahead.

“Amid rising protectionism, the shared commitment of both Vietnam and the EU to diversify economic cooperation is a decisive factor. Without agreements like the EVFTA, expanding such cooperation would face significant barriers. The EVFTA provides the enabling conditions for us to diversify trade relations, expand supply chains, and strengthen Vietnam’s role in the region,” Ambassador Nguyen Van Thao said.

The Ambassador likened the EVFTA to a “highway” for economic and trade cooperation between Vietnam and the EU, but cautioned that this highway will only deliver results if Vietnamese businesses equip themselves with “good engines”, meaning a deep understanding of the European market, regulations, consumer culture, and partnership ecosystem. Operating with an outdated mindset and insufficient preparation, he warned, will make it difficult to fully capitalize on the opportunities the agreement offers.

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