EVFTA: A pathway for Vietnamese agricultural products amid reciprocal tariff waves

EVFTA paves the way for export

After five years of implementation, the EU-Viet Nam Free Trade Agreement (EVFTA) has proven its role in maintaining Viet Nam's export momentum. From USD 17.9 billion in 2020, Viet Nam's export turnover to the EU has nearly tripled, reaching USD 51.7 billion in 2024.

Among export categories, agricultural products, seafood, textiles, and footwear are the sectors that have best capitalized on tariff incentives, thanks to clear rules of origin and strong capacity to meet market standards.

According to Ms. Trinh Thi Thu Hien, Deputy Director General of the Agency of Foreign Trade under the Ministry of Industry and Trade, the use of Certificates of Origin (C/O) under the EVFTA framework has drastically risen, from 14.8% in 2020 to over 35% in 2024. In the seafood sector alone, C/O issuance accounts for more than 84% of total export turnover, reflecting businesses' proactivity and rapid adaptability.

For traditional sectors such as footwear and seafood, the agreement’s rules of origin allow Vietnamese enterprises to enjoy a 0% tariff rate upon export to the EU, creating a significant competitive advantage over their rivals.

Ms. Phan Thi Thanh Xuan, Vice Chairwoman and Secretary-General of the Viet Nam Leather, Footwear and Handbag Association (LEFASO), noted that the EVFTA provides a major advantage, as the rules of origin for footwear require only about 40% value added in Viet Nam. Thanks to this, despite global trade fluctuations, the sector’s exports to the EU have continued to grow by around 14% annually.

In addition to footwear, the seafood sector has also seen remarkable progress. Mr. Ngo Minh Phuong, Director of Viet Truong Co., Ltd., shared that since the EVFTA took effect, the company’s seafood export turnover to the EU has doubled and even tripled in some years. Tariff preferences have enabled this commodity to compete fairly with products from India, Indonesia, and China.

Experts agree that as Vietnamese agricultural and seafood products strengthen their position in the EU market, fully leveraging the EVFTA's rules of origin brings tariff incentives and helps businesses enhance partners' confidence through transparency and traceability, which are key factors increasingly controlled by the EU within its green supply chain.

Responding to reciprocal tariffs: Pivoting, not shifting direction

The international landscape since early 2025 has created major challenges, particularly as the U.S. began imposing reciprocal tariffs of 10–50% on more than 180 trading partners, including Viet Nam. For Viet Nam's export products alone, the average tariff rate is up to 20%. According to Mr. Do Ngoc Hung, Viet Nam's Trade Counselor in the U.S., this is a long-term policy that directly affects global import-export flows.

The impact is especially evident in key products such as seafood, wood, and footwear, which account for many of Viet Nam’s export turnover to the U.S. However, Mr. Hung stated that rather than scaling down, Vietnamese enterprises are making efforts to diversify markets and fully leverage existing FTAs, with the EVFTA serving as a strategic pillar.

Expanding into the EU is considered a reasonable pivot. The EU market offers vast capacity and deep preferential tariffs, especially for Vietnamese products with comparative advantages such as agricultural products, seafood, textiles, and footwear.

In the first nine months of 2025, Viet Nam's export turnover to the EU reached over USD 41.7 billion, up 9.3% compared to the same period in 2024. This figure reflects the rapid adaptability of Vietnamese enterprises, which have leveraged the EVFTA as a "safe channel" to offset declines in exports to the U.S.

However, to effectively capitalize on this agreement, Vietnamese businesses still need support on policy and information from management agencies. Deputy Director General Trinh Thi Thu Hien noted that the Agency of Foreign Trade is accelerating hands-on training programs to help enterprises understand and properly apply rules of origin. At the same time, the agency coordinates with customs authorities in importing countries to ensure that Vietnamese goods meet the requirements for preferential tariff treatment.

"Businesses need to be more proactive in recordkeeping, traceability, and updating official regulations, because even a minor mistake can cause an entire shipment to lose preferential treatment," said Ms. Trinh Thi Thu Hien.

Director Ngo Minh Phuong shared the same view and emphasized that the issue goes beyond paperwork. To take advantage of the EU market, enterprises must comply with clearly defined zoning for farms and raw material areas and align with government policies. Given that agriculture and fisheries are sustainable sectors, they require long-term vision rather than short-term, order-based responses.

Vice Chairwoman Phan Thi Thanh Xuan noted that new FTAs, such as the Indonesia-EU agreement, could introduce additional competitors for Viet Nam. Therefore, if Vietnamese enterprises do not leverage the EVFTA quickly, their advantages could be lost. "Mastering the rules of origin is the key to maintaining the position of Vietnamese products in Europe," she stressed.

Amid reciprocal tariff waves affecting global trade, the EVFTA has emerged as a stabilizing lifeline, helping Vietnamese goods avoid market shocks and sustain export growth. However, this opportunity will only translate into a real advantage if enterprises understand the rules, proactively localize their raw material sources, and receive timely and consistent policy support.