At the seminar "Export Potential of Key Products to the European Market" on November 18, Mr. Dinh Sy Minh Lang, from the European-American Market Department, Ministry of Industry and Trade, stated that after 4 years of the EU-Vietnam Free Trade Agreement (EVFTA), came in effect since August 2020, the EU is now Vietnam's top trade partner.

Over the past four years, Vietnam's exports to the EU have exceeded 200 billion USD, growth has been between 12% and 15%. In July 2024 alone, Vietnam's trade surplus with the EU was estimated at over 20.2 billion USD, a 19.4% increase compared to July 2023. Export value rose by 16.8%, while imports grew by 10%. The EU is one of Vietnam's top 6 trading partners.

The seminar "Export Potential of Key Products to the European Market"

A survey by the European Chamber of Commerce in Vietnam (EuroCham) showed that the EVFTA has significantly boosted Vietnam's exports to Europe, increasing from 35 billion euros in 2019 to over 48 billion euros in 2023. Most EU27 countries' imports from Vietnam have risen since 2021, particularly in electronics, textiles, footwear, agriculture, and seafood.

However, Mr. Nguyen Thanh Hung, Senior Government Advisor and Head of the National Steering Committee for International Integration, expressed concern about the recent EU regulations, which are already impacting Vietnam's exports.

For example, on May 13, 2024, the EU issued new import procedures, requiring all businesses exporting from Vietnam to declare data in advance through the Import Control System (ICS2) by June 3, 2024. This regulation also applies to shipments transiting through any EU member state, even if the final destination is outside the EU. Non-compliance could lead to shipments being halted at the EU border.

Vietnamese businesses that fail to comply with these regulations may face severe consequences such as: containers and shipments being halted at the EU border; goods not being cleared by EU customs; or declarations being incomplete or rejected, leading to potential trade sanctions for non-compliance with EU regulations. Affected products include livestock, cocoa, coffee, palm oil, rubber, soybeans, wood, and related items. Businesses must prove that these products do not originate from recently deforested land or contribute to forest degradation.

Additionally, the EU's Carbon Border Adjustment Mechanism (CBAM), to be fully implemented by 2026, will affect high-carbon products like cement, steel, aluminum, and fertilizers. Businesses exporting to the EU must adjust to these changes to meet the EU's carbon-neutral goals. Mr. Hung advises businesses to stay updated on regulations and market trends to remain competitive.