European Union · Nation Thailand
Vietnam’s EVFTA advantage raises pressure on Thai exporters
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Thai exporters could face tougher competition in the European Union as Vietnam enters the seventh year of its free trade agreement with the bloc, with nearly 99% of EU tariff lines now open to Vietnamese goods.
Key facts
- Of that amount, about US$383.8 billion, or 42.6% of accumulated trade over more than three decades, was generated during the six years after the EVFTA entered into force.
- Data from Vietnam Customs and the country’s national statistics office showed that total trade between Vietnam and the EU exceeded US$900 billion between January 1995 and June 2026.
- The Vietnam Trade Office in Belgium and the EU reported that two-way trade increased from US$49.8 billion in 2019, before the agreement took effect, to US$74 billion in 2025.
- Trade reached US$41.7 billion in the first six months of 2026
- EuroCham’s Business Confidence Index survey for the second quarter of 2026 found that 68% of European companies surveyed were involved in Vietnam-EU trade through imports, exports or links to regional supply chains.
- The Department of International Trade Promotion’s office in Ho Chi Minh City warned that Vietnam’s expanding tariff advantage could strengthen the cost competitiveness of its products and encourage European companies to direct more
Summary
The Department of International Trade Promotion’s office in Ho Chi Minh City warned that Vietnam’s expanding tariff advantage could strengthen the cost competitiveness of its products and encourage European companies to direct more investment and purchase orders to the country.
Thai agriculture, food, textiles, footwear, furniture and electronics are among the sectors that could face greater pressure, along with products connected to international supply chains.