EVFTA là gì?

What is EVFTA?

The EVFTA (European-Vietnam Free Trade Agreement) is a free trade agreement between Vietnam and the European Union (EU), which consists of 27 member states. As a new-generation, high-standard, and comprehensive agreement, EVFTA aims to boost trade, investment, and sustainable development between both parties.

The EVFTA not only eliminates over 99% of tariffs but also expands market access for services and investments, enhances intellectual property protection, promotes sustainable growth, and strengthens dispute resolution mechanisms.

EVFTA Signing Timeline and Enforcement

• December 1, 2015: Negotiations concluded
  
• February 1, 2016: Agreement text published
  
• June 2018: Split into two agreements: EVFTA (trade) and EVIPA (investment protection)
  
• June 30, 2019: Official signing of EVFTA and EVIPA
  
• February 12, 2020: European Parliament ratified EVFTA
  
• August 1, 2020: EVFTA officially came into effect
  

Vietnam’s strong commitment to EVFTA negotiations and implementation has enhanced its global reputation and driven domestic reforms.

Which Countries Are Involved in the EVFTA?

The EVFTA is an agreement between Vietnam and the 27 EU member states, including Germany, France, the Netherlands, Italy, Spain, Poland, Sweden, Belgium, and other Nordic countries.

In total, the EVFTA includes 28 participants: Vietnam and the 27 EU countries.

Achievements After 5 Years of EVFTA Implementation

Nearly 5 years into implementation, EVFTA has delivered impressive results:

• Export Growth: Vietnam’s exports to the EU surged, with a $35.2 billion trade surplus in 2024.
  
• Promising Market: The EU market comprises over 740 million consumers and GDP exceeding $18 trillion.
  
• Key Export Items: Electronics, machinery, textiles, footwear, and agricultural products
  
• Top EU Trade Partners: Netherlands (24.56%), Germany (15.49%), and Italy (approx. 10%)
• GDP Growth Contribution: EVFTA contributes 2.18% to 7.72% to Vietnam’s GDP in each 5-year period

Economic Impact of EVFTA on Vietnam

1. Economic Growth

According to the Ministry of Planning and Investment, EVFTA contributes to:

• An average GDP increase of 2.18%–7.72% in each 5-year period
  
• Institutional reforms, improved investment environment, and enhanced national competitiveness

2. Imports and Exports

Exports:

– Projected to grow by 42.7% by 2025 and 44.37% by 2030

– High-growth sectors:

• Agriculture: Rice (+65%), pork, sugar, timber
  
• Manufacturing: Textiles (+67%), garments (+81%), footwear (+99%)
  
• Services: Shipping (+100%), aviation (+141%), finance

Imports:

• Expected to rise by 33.06% by 2025 and 36.7% by 2030
  
• Main imports: Transportation vehicles, machinery, electronics, textiles
  

EVFTA helps Vietnam diversify markets, reduce dependence on traditional partners, and enhance economic security.

3. Impact on the State Budget

Reduced import-export tax revenue: Around VND 2,537 billion
Increased domestic revenue due to economic growth: Estimated VND 7,000 billion (2020–2030)

Key Provisions of the EVFTA

– Tariff Elimination: Over 99% of tariff lines are to be removed based on a committed schedule, with most taking effect from day one.

– Market Access for Services and Investments: Vietnam opens up sectors such as finance, telecommunications, logistics, and distribution, offering EU businesses better access.

– Rules of Origin: Clear origin rules determine if goods qualify for EVFTA tariff preferences.

– Intellectual Property Protection: Higher standards than WTO: trademarks, geographical indications, patents, copyrights, etc.

– Sustainable Development: Commitments to labor, environmental standards, and sustainable trade and investment practices.

– Dispute Settlement Mechanism: Establishes a transparent, efficient mechanism to ensure the agreement is upheld by both parties.

Certificate of Origin – C/O Form EUR.1

To benefit from EVFTA tariff preferences, exported goods must have a EUR.1 Certificate of Origin, issued by competent Vietnamese authorities.

Purpose: Certifies that the goods originate from Vietnam and meet EVFTA conditions

Issuing Authority: Export-Import Management Department – Ministry of Industry and Trade, or authorized agencies

Required Documents:

• Application form
  
• Customs declaration
  
• Commercial invoice
  
• Bill of lading
  
• Proof of origin (production process or related documents)
  

Issuance Time: At export time or shortly after the goods leave Vietnam

Note: For shipments worth less than €6,000, exporters can self-certify origin if registered as an “Approved Exporter”

EVFTA vs. CPTPP: A Comparison

Both EVFTA and CPTPP are strategic FTAs that help Vietnam diversify markets and reduce reliance on Asia.

>> Read More: What Is the CPTPP Agreement? Opportunities and Challenges for Vietnamese Businesses

Important Considerations When Applying EVFTA

• Check annual tariff schedules by HS code carefully
  
• Ensure products comply with EVFTA’s rules of origin
• Use the correct C/O Form EUR.1 or apply self-certification when eligible

>> Read More: What is C/O Form EUR.1? A Detailed Guide to the Latest EVFTA Certificate of Origin Application Process in 2025

The EVFTA marks a milestone in Vietnam’s global economic integration. This agreement not only enhances trade and investment with the EU but also drives institutional reforms, competitiveness, and sustainable development. Vietnamese businesses must proactively leverage EVFTA opportunities to expand markets and strengthen their position in global value chains.