Exports to Vietnam: Promising Prospects with EVFTA

In order to promote relationships between the European Union and Vietnam, a free trade agreement (Europe-Vietnam Free Trade Agreement, or EVFTA) was signed on June 30, 2019. Thus, attractive prospects are opening up for European companies wishing to export to Vietnam. This agreement includes the reduction of customs fees on entry into Vietnam for products from the European Union.

A strategic anchoring point in the heart of ASEAN

Thanks to the EVFTA, commercial trade between Vietnam and the countries of the European Union will be facilitated. European companies will then benefit from a significant center of gravity in the heart of Southeast Asia (ASEAN). Indeed, the country is positioned at the crossroads of the region, between China and the other countries of ASEAN. With 95 million inhabitants in 2018, Vietnam is the third most populated country in the most dynamic region of the world. The emergence of a middle class eager to rise socially makes Vietnam a top-priority market for France.

On the economic front, Vietnam will play a leading role in the development of ASEAN. By way of illustration, Vietnam’s GDP growth reached 7% by 2018. According to The Future of ASEAN: Vietnam Perspective, ASEAN will become the fifth largest economy in the world by 2022 in terms of GDP. Some key sectors, such as textiles, electronics and agriculture, currently support the Vietnamese economy. Indeed, Vietnam remains nowadays perceived as the workshop of South-East Asia. Nevertheless, the services sector is growing at a fast pace.

Why invest in Vietnam ?

The Vietnamese economy has been gradually modernized and opened over the last 20 years. The business climate has therefore become more favorable over time.

oday, Vietnam is at a turning point. The country must move towards higher value-added production and improve its productivity. In order to accomplish this, Vietnam has many assets. These include the 95 million people market, the dynamism of ASEAN and the political will to reform. The rise of the Vietnamese economy will require many foreign investments. Which represent many commercial opportunities for European companies, that we can assist with our International Desk.