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Vietnam

On 25 June 2018, Commissioner Malmström and Vietnamese Minister for Trade and Industry Trần Tuấn Anh agreed on a final text for the EU-Vietnam Free Trade Agreement (FTA). This formally concludes the legal review of the document. They also concluded discussions on an Investment Protection Agreement (IPA).

The Commission will now translate the text of trade agreement into the other 22 EU official languages and launch the legal review of the IPA text.

Once translated, the Commission will make a proposal to the Council of Ministers for signature and conclusion of the agreements. After signature the Council will send the agreements to the European Parliament. The investment protection agreement with Vietnam will follow its ratification procedure also at Member State level.

The agreement will contain a legally binding link to the Partnership and Cooperation Agreement (PCA) which governs the overall relationship between the EU and Vietnam.

Negotiations for an ambitious and comprehensive FTA were launched in June 2012 and concluded in December 2015 with a view to ensuring a conducive environment for trade and investment relations. The negotiated text was published on 1 February 2016.

The necessary preparatory work to ensure the effective and timely implementation of the trade agreement is underway.

Better Regulation Agenda

Commission proposal for conclusion, signature and provisional application of EU-Vietnam Free Trade Agreement

Trade picture

  • EU exports to Vietnam are dominated by high tech products including electrical machinery and equipment, aircraft, vehicles, and pharmaceutical products. Vietnam's key export items to the EU include telephone sets, electronic products, footwear, textiles and clothing, coffee, rice, seafood, and furniture.
  • The EU has a negative balance of trade in goods with Vietnam. In 2016, EU-Vietnam trade in goods was worth over €42.4 billion, with €33.1 billion in imports from Vietnam into the EU, €9.3 billion in exports from the EU to Vietnam.
  • The EU is one of the largest foreign investors in Vietnam. In 2015, EU investors committed a total of $1.3 billion in Foreign Direct Investment reaching a total investment stock of $ 21.7 billion. The EU is  Vietnam's 5th largest foreign investor partner.

EU-Vietnam: Trade in goods

Trade in goods 2015-2017, € billions
Year EU imports EU exports Balance
2015 30.0 8.4 -21.6
2016 33.1 9.5 -23.6
2017 37.0 10.6 -26.4

EU-Vietnam: Trade in services

Trade in services 2014-2016, € billions
Year EU imports EU exports Balance
2014 1.6 1.5 -0.1
2015 1.9 1.6 -0.2
2016 1.7 1.9 0.2

EU-Vietnam: Foreign direct investment

Foreign direct investment 2016, € billions
Year Inward stocks Outward stocks Balance
2016 0.1 8.3 8.1

Date of retrieval: 16/04/2018

More statistics on Vietnam

EU and Vietnam

Negotiations for an EU-Vietnam FTA were launched in June 2012 and concluded in 2015.The EU considers the FTAs with individual ASEAN countries as stepping stones towards an agreement in the regional framework, which remains the ultimate goal.

Vietnam has experienced a radical economic and social transformation over the past two decades alongside integration into the global economy. As a rapidly developing and fast growing ASEAN economy, Vietnam holds substantial potential for EU businesses.

The Partnership and Cooperation Agreement between the EU and Vietnam - entered into force in October 2016 - offers a solid foundation to intensify relations between the two parties.

Vietnam enjoys trade preferences with the EU under the Generalised Scheme of Preferences.

Vietnam and ASEAN

ASEAN as a whole represents the EU's 3rd largest trading partner outside Europe (after the US and China). Of the ten ASEAN members, Vietnam has become the EU's second most important trading partner after Singapore. Negotiating better access for EU exporters to the dynamic ASEAN market is a priority for the EU.

The EU-ASEAN Dialogue includes discussions on trade and investment issues at ministerial and senior economic official levels. It plays an important part in the trade co-operation between the EU and ASEAN.

More information on ASEAN

Trading with Vietnam