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| A worker processes shrimp for export at Minh Phu Company in Ca Mau province. (Photo: VNA) |
The EU is one of the most promising export markets globally, with a population of over 740 million and a gross domestic product (GDP) exceeding 18 trillion USD. It is Vietnam's third-largest export market, encompassing strong sectors such as footwear, textiles, agricultural products, and consumer electronics.
Over the past four years, Vietnam’s export to the EU is eclipsed the 200 billion USD mark, achieving an annual growth of 12–15%, according to the General Department of Vietnam Customs. Last year, Vietnam’s shipment to the bloc reached 52.1 billion USD, a 19.3% increase compared to the same period in 2023.
A survey by the European Chamber of Commerce in Vietnam (EuroCham) showed that the EU- Vietnam Free Trade Agreement (EVFTA) has significantly boosted Vietnam's exports to the EU, from 35 billion EUR (36.9 billion USD) in 2019 to over 51 billion EUR in 2024. Sectors such as electronics, textiles, footwear, agriculture, and seafood have particularly benefitted from the phased tariff reductions under the agreement.
Since 2021, the import turnover of Vietnamese goods in most EU countries has increased. Deputy Director of the Agency of Foreign Trade Tran Thanh Hai noted that major EU export markets have surpassed 3 billion USD in turnover.
Despite these achievements, the EU market still has vast untapped potential as Vietnamese goods hold a relatively small market share. However, senior economist Nguyen Thanh Hung expressed his concerns about new EU regulations that could significantly impact Vietnam's exports.
For instance, on May 13, 2024, the EU introduced new import procedures. Under the new regulations which took effective on June 3, all imported goods must be declared through the Import Control System 2 (ICS2), which was designed to improve security of the EU's common market and its citizens.
If parties are unprepared and fail to provide the data required by ICS2, goods will be held at EU borders and will not receive customs clearance, Hung said.
One of the most discussed new regulations affecting exports to the EU is the Carbon Border Adjustment Mechanism (CBAM), which the EU will pilot during a transition phase starting October 1, 2024, and fully implement in 2026. The EU will impose a carbon tax on all goods imported into its internal market based on the greenhouse gas emissions intensity of the production process in the host country.
To export to the EU and Nordic countries, businesses must understand these regulations and market trends to develop new approaches. Vietnamese enterprises need to transition their production models to align with the EU’s new requirements, Hung emphasised.
Dinh Sy Minh Lang, Department of European-American Markets under the Ministry of Industry and Trade, noted that EU retailers prioritise sustainable, eco-friendly, and fair-trade products, urging Vietnamese businesses to expand exports via official channels.
Although formal exports involve complex procedures and multiple taxes and fees, they ensure strict quality control and enhance the credibility of products with consumers.
To succeed in exports via official channels, businesses need to identify target markets, research standards and regulations, and assess their own capabilities to develop effective strategies, he suggested.
Companies must produce products to international standards, build and maintain quality management systems, enhance employee skills, upgrade technology, and focus on producing high-quality goods, Lang stated./.
