FIVE YEARS OF EVFTA: VIETNAM’S AGRICULTURAL EXPORTS REAP HUGE BENEFITS

FIVE YEARS OF EVFTA IMPLEMENTATION: VIETNAM’S AGRICULTURAL EXPORTS REAP HUGE BENEFITS

Thanks to tariff preferences provided by the EU-Vietnam Free Trade Agreement (EVFTA), Vietnam’s agricultural, forestry, and fishery exports to the European Union (EU) have seen remarkable growth over the past five years. Specifically, export turnover rose from USD 3.76 billion in 2019 to USD 5.437 billion in 2024, marking an impressive 42.95% increase.

EVFTA: A SPRINGBOARD FOR AGRICULTURAL EXPORT GROWTH

The EU has long been one of Vietnam’s top economic partners, not only in trade but also in investment, technology transfer, and sustainable development cooperation. Experts agree that the EVFTA has become a strong driving force behind the growth of agricultural exports, while also supporting Vietnam’s institutional reforms and promoting greener, more sustainable production standards.

Despite facing numerous international market challenges, Vietnamese enterprises have effectively leveraged the opportunities brought by the EVFTA. From 2019 to 2024, agricultural, forestry, and fishery exports recorded an average annual growth rate of 8.3%.

STRIKING GROWTH IN EU MARKETS

A standout example is Portugal. In 2024, Vietnam’s exports to Portugal soared by 353% compared to the previous year. By the first quarter of 2025, growth continued at 313%, making Vietnam the second-largest non-EU fish supplier to Portugal, just after Ecuador and surpassing China.

In Hungary, although a smaller market, the first five months of 2025 saw two-way trade reach USD 360.09 million, up 9.4%. Exports accounted for USD 269.98 million (up 8.5%), while imports stood at USD 90.11 million (up 12.4%). Key export items included coffee (USD 6.5 million, 10% of Hungary’s coffee imports), cashew nuts (USD 2.6 million, 32%), pepper (USD 0.33 million, 5.2%), and rice (1,982 tons worth USD 1.95 million, 3.8%).

EVFTA: KEY TO STABLE SUPPLY CHAINS

Speaking at the “EU-Vietnam Free Trade Agreement and Future Prospects” conference held in Belgium in June 2025, Deputy Minister of Agriculture and Environment Phung Duc Tien emphasized that the EU consistently ranks among Vietnam’s top four agricultural export markets. Implementing the EVFTA has not only increased export turnover but has also helped ensure stable food supplies, allowing both sides to respond flexibly to global disruptions.

According to Deputy Minister Phung Duc Tien, Vietnam has great potential to expand exports of high-value-added products to the EU, including processed seafood, processed coffee, fresh and processed fruits and vegetables, cashew nuts, wood products, rubber, pepper, and spices. With a population of over 100 million and 17 FTAs in effect, Vietnam also has significant demand for raw materials, agricultural inputs, and logistics development to support its agriculture sector.

DEEPENING GLOBAL SUPPLY CHAIN INTEGRATION

To maximize the EVFTA’s benefits, Deputy Minister Tiến recommends that businesses on both sides diversify raw material sources, adopt advanced EU technologies, and improve production, processing, and export methods toward sustainability and climate resilience. Strengthening integration into global supply chains is seen as essential to maintaining Vietnam’s competitive edge.

Beyond trade advantages, the EVFTA has also unlocked opportunities to attract more high-quality European investment into Vietnam’s agricultural sector. To date, total registered EU investment in Vietnam has exceeded USD 35 billion, focusing mainly on high-tech industries, renewable energy, pharmaceuticals, and logistics. Notable projects include Lego (USD 1 billion), Bosch (USD 340 million), and BW Industrial (USD 100 million).

Clearly, the EVFTA is not only a lever for export growth but also a gateway for Vietnam to access investment, technology, and enhanced competitiveness, further cementing its position on the global trade map.

STRENGTHENING EU-VIETNAM COOPERATION FOR LONG-TERM SUCCESS

Beyond immediate trade figures, the EVFTA has paved the way for deeper EU-Vietnam cooperation in areas like sustainable farming, food safety standards, digital transformation, and climate change adaptation. European partners are increasingly providing technical assistance, know-how, and green technology to help Vietnam transition toward more eco-friendly, high-value agricultural production. This evolving partnership not only benefits large exporters but also offers opportunities for small-scale farmers, cooperatives, and rural communities to improve their livelihoods and connect with global markets in a more equitable and resilient way.

Source: VIETNAM ECONOMIC NEWS