In the first 10 months of 2022, the import and export turnover of goods between Vietnam and the EU reached USD 52.5 billion, an increase of 14% over the same period last year; in which, exports reached USD 39.7 billion.

After more than 2 years of implementing the EVFTA, Vietnam's exports to the EU have recorded positive results. However, the context of inflation and difficulties of the world economy, especially changes from the EU market, is expected to affect Vietnam's exports in the upcoming period. Therefore, businesses need to have plan to make the most of market opportunities and great advantages from this Agreement.

The EU is currently Vietnam's leading trading partner and the third largest export market with an average export growth rate of 7.5%, accounting for an average proportion of 13.6% of the country's total exports in the 2015 - 2021period.

Notably, Vietnam's exports to most markets in the EU recorded good growth and a positive shift.

The structure of exports to the EU also tends to expand and diversify. The implementation of the EVFTA Agreement also contributes significantly to helping Vietnamese goods improve their competitiveness and expand their market share in the EU market.

According to data from the statistical office of the European Union, the market share of Vietnam's goods in the EU's total imports from the external market in the first eight months of 2022 accounted for 1.8%, higher than ASEAN countries such as Malaysia, which accounted for 1.2%, Thailand accounted for 0.9%, Indonesia accounted for 0.7%, Singapore accounted for 0.7%. This shows that these are very positive results and a favorable start for Vietnam - EU economic and trade development in the upcoming period.

In addition to the achieved results, in order to make the most of the incentives from the EVFTA, there are still many challenges, especially in the context that the international situation is forecast to remain complicated and unpredictable, especially regional and global geopolitical uncertainties, potential risks of economic recession, and supply chain disruption.

Specifically, the commodity trading market has been experiencing complicated developments in terms of supply and price. Although export activities from Vietnam to the EU market area are not directly affected but with many limitations such as: prices of food items on the world market are subject to fluctuations; freight operations are difficult in terms of time and cost; fear of payment risks; increase in raw material prices for production; the EU's economic growth may slow down due to being hit hard by regional conflicts and record high inflation will have a significant impact on consumer spending, affecting import demand. 

Especially, the trend that the EU will increase the application of non-tariff barriers, tighten regulations and technical standards on environment/climate, sustainable development. 
 

Kylie Nguyen