Vietnam trade boom under EVFTA faces green hurdles

Vietnam's exporters navigate EVFTA gains and sustainability pressures in 2024

Vietnamese exporters are facing both new opportunities and rising challenges in global markets. The EU-Vietnam Free Trade Agreement (EVFTA) has cut many tariffs to zero, opening doors for local businesses. At the same time, stricter sustainability rules and shifting consumer demands are forcing companies to adapt quickly.

The government has stepped in to support export growth by addressing energy shortages and supply chain disruptions. Recent policy moves aim to remove bottlenecks while exporters adjust to higher freight costs and geopolitical uncertainties. The EVFTA has significantly boosted Vietnam's trade prospects by eliminating tariffs on many goods. This has created fresh openings for seafood and textile exporters in European markets. However, new EU sustainability regulations now require faster green transitions, adding pressure on local firms to meet stricter environmental standards.

Global seafood demand remains high, but buyers are increasingly seeking affordable, easy-to-prepare products. Extended shipping times have also pushed exporters to focus on processed goods with longer shelf lives. To manage supply chain risks, many are splitting shipments into smaller batches and adopting flexible delivery schedules.

In the textile sector, industry leaders have called for greater investment in domestic raw material production. Currently, Vietnam relies heavily on imported fabrics, which weakens competitiveness. The Vice Chairman of the Vietnam Textile and Apparel Association stressed the need to reduce this dependence to strengthen the sector's resilience.

Meanwhile, US consumers are demanding more transparency, traceability, and sustainability in supply chains. This has raised compliance costs for exporters, who must now prove ethical sourcing and environmental responsibility. The Prime Minister's recent directive, Official Dispatch No. 23/CD-TTg, aims to secure stable energy supplies and remove logistical barriers to support export expansion.

Experts warn that future growth must move beyond volume and focus on higher-value products. This shift requires stronger domestic enterprises capable of innovation and deeper integration into global value chains. Companies are already adjusting to geopolitical tensions and rising freight costs to maintain their market positions. The EVFTA has created trade advantages, but Vietnamese exporters now face tighter regulations and changing buyer expectations. Firms investing in sustainability, domestic production, and supply chain flexibility are better positioned to thrive. Government support and industry adaptation will be key to securing long-term growth in competitive global markets.