LEVERAGING FTAs FOR VIETNAM’S EXPORT GROWTH

Over the past two decades, Vietnam has emerged as one of the most dynamic players in global trade, thanks in large part to its proactive approach to signing and implementing Free Trade Agreements (FTAs). These agreements have played a critical role in transforming Vietnam into a manufacturing and export powerhouse, opening the door to markets across Asia, Europe, and the Americas.

What are Free Trade Agreements (FTAs)?

A Free Trade Agreement (FTA) is an agreement between two or more countries where the countries agree on certain obligations that affect trade in goods and services, and protections for investors and intellectual property rights, among other topics. Under a free trade policy, goods and services can be bought and sold across international borders with little or no government tariffs, quotas, subsidies, or prohibitions to inhibit their exchange.

List of FTAs of Viet Nam

As of October 2024, Viet Nam has signed and implemented 17 FTAs and is negotiating two more. These FTAs cover a wide range of areas, including trade in goods and services, investment, intellectual property, e-commerce, government procurement, competition policy, and sustainable development. They also require Viet Nam to meet requirements on market opening, fair competition, labor standards, and environmental protection, creating both opportunities and challenges for Viet Namese businesses.

Viet Nam is negotiating future potential agreement with the European Free Trade Association comprised of Switzerland, Norway, Iceland, Liechtenstein (Viet Nam – EFTA). Viet Nam is also actively involved in the ongoing FTA negotiations between ASEAN and Canada.

Source: Vietnam News Agency

These agreements connect Vietnam to over 60 countries, covering most of its major trading partners and more than 90% of its total trade volume.

Navigating the New Trade Context

In 2025, amid growing global protectionism, Vietnam faces new trade headwinds. One notable challenge is the 20% tariff recently imposed by the United States on select Vietnamese exports. While the U.S. remains a crucial market, this move underlines the importance of diversifying export destinations and making full use of FTA preferences.

Vietnamese exporters should:

• Re-orient toward FTA partners such as the EU, Japan, South Korea, etc. where preferential access is guaranteed;
• Review supply chains and rules of origin to ensure compliance and eligibility for tariff cuts;
• Build stronger awareness of FTA provisions, working with trade authorities and associations to maximize benefits.

Conclusion

Vietnam’s 17 FTAs represent a strategic asset for long-term growth, trade diversification, and economic resilience. In a volatile global environment, these agreements offer a clear roadmap for businesses to reduce costs, access high-potential markets, and strengthen global competitiveness. Now more than ever, effectively leveraging FTAs is not just a trade strategy—it is a business imperative.