EuroCham announced the results of the Business Confidence Index (BCI) survey on the impact of the EVFTA on July 31 after the EVFTA has taken effect for four years since August 1, 2020. Accordingly, the Vietnam-EU Free Trade Agreement (EVFTA) has brought benefits to many European enterprises.
Moreover, nearly two-thirds of European company respondents said that they have received benefits to varying degrees. Roughly 27 percent of companies receive moderate to significant benefits (up 9 percent year-on-year) while 25 percent have yet to see any tangible benefits (down 6 percent year-on-year).
The respondents said that reducing tariffs, increasing market competitiveness and expanding market access are the key benefits. Other benefits taken account into are an appropriate supply chain, improved business transparency and an enhanced legal framework.
The EVFTA significantly boosted Vietnam's exports to Europe, increasing from €35 billion (US$37.9 billion) in 2019 to more than €48 billion (US$52 billion) in 2023. This notable growth is seen in sectors such as electronics, textiles, footwear, agriculture and seafood.
