EVFTA is one of Vietnam's most important free trade agreements (FTAs). After more than 5 years in effect, EVFTA has helped Vietnam's export turnover to the EU grow by an average of 12-15% per year, making the EU one of Vietnam's three largest export markets.
In this article, VTM Logistics summarises the core information about EVFTA that every import-export business needs to know — tariff commitments, rules of origin, sector opportunities, and practical steps to take advantage of the preferences.
View more C/O Certificate of Origin to learn how to complete the procedures for claiming preferential treatment.
To benefit from the 0% tariff rate under EVFTA, goods must have a C/O form EUR.1. VTM Logistics supports customers with end-to-end C/O procedures — from declaration and certification to presentation together with the customs document set. A minor error can result in the loss of tariff preferences.
EVFTA (EU-Vietnam Free Trade Agreement) is a new-generation Free Trade Agreement between Vietnam and the European Union (EU-27), signed on 30/6/2019 in Hanoi and officially in force since 1/8/2020.
EVFTA is part of Vietnam's third generation of FTAs (after bilateral agreements with Japan and South Korea, and the CPTPP), with the broadest and deepest scope of commitments to date:
Alongside the EVFTA is EVIPA (Vietnam–EU Investment Protection Agreement), which took effect later, establishing a legal framework to protect investors from both sides.
This is the most closely watched aspect of the EVFTA. The EU commits to eliminating 99.2% of tariff lines (equivalent to 99.8% of Vietnam's export turnover to the EU). Vietnam, for its part, commits to eliminating 65% of tariff lines immediately upon the agreement's entry into force, moving toward 99% after 10 years.
| Cargo Group | EU Tariffs Before the EVFTA | EU Tariffs After the EVFTA | Roadmap |
|---|---|---|---|
| Textiles and footwear | 8-17% | 0% | Immediately or within 3-5 years |
| Agricultural products (rice, coffee, pepper) | 5-25% | 0% | Immediately or quota |
| Seafood (shrimp, pangasius) | 7-26% | 0% | Immediately or within 3-5 years |
| Wooden products, furniture | 4-7% | 0% | Immediately |
| Electronics, components | 2-8% | 0% | Immediately or 5-7 years |
| Bicycles, spare parts | 15-26% | 0% | 7-9 years |
The numbers speak for themselves: For a garment container valued at $50,000 exported to the EU, before EVFTA businesses had to pay 12% import duty = $6,000. With EVFTA, the duty drops to 0% — saving $6,000 per container. If the business exports 50 containers/year, total savings is $300,000. That is a huge competitive advantage compared to competitors in China or Thailand (which do not have an FTA with the EU).
To enjoy preferential tariffs, goods must meet rules of origin. EVFTA has relatively flexible rules of origin compared to other FTAs:
C/O form EUR.1 is the most important document for enjoying EVFTA preferences. Issued by the Vietnam Chamber of Commerce and Industry (VCCI) or authorized agencies.
The EU is Vietnam's largest seafood import market. EVFTA eliminates tariffs on shrimp, pangasius, and tuna immediately upon entry into force. Note: Seafood must originate from Vietnamese or EU raw materials — imported raw materials from China or India are not allowed.
EVFTA is the first FTA that allows Vietnamese textiles and garments to use fabric from South Korea (using ASEAN-Korea cumulation). This is a huge advantage compared to CPTPP (which requires fabric from Vietnam or CPTPP members). However, businesses need to prove the production process from fabric → finished product in Vietnam.
Rice, coffee, pepper, cashew, tropical fruits — the EU applies tariff rate quotas to certain sensitive items such as rice (80,000 tons/year), garlic, and mushrooms. Within quota: 0% tax. Outside quota: tariffs remain at the old rate.
EVFTA has specific commitments on transport and logistics services, opening the market for businesses from both sides:
For Vietnamese import-export businesses, the practical impact is: supply chains are optimised, logistics costs fall thanks to competition among service providers, and export procedures become more standardised.
🔴 Common Barriers Businesses Face
Real-world example: A seafood company in Can Tho specializing in exporting frozen pangasius fillets to Germany. Before EVFTA, the import duty into the EU was 7%, plus a 2.5% anti-dumping duty (FOB price from $2.5/kg). Total duty ~$0.24/kg. With EVFTA, the duty drops to 0% (pangasius fillets had their tariffs eliminated immediately). With an output of 500 tons/year, the company saved $120,000/year — enough to invest in a new freezing line and lower selling prices to be more competitive than competitors in Indonesia and Bangladesh.
How long will EVFTA remain in effect?
EVFTA has no expiration date. It is an indefinite agreement, terminating only if one party announces withdrawal with a 12-month notice period.
How do I look up the EVFTA tariff for a specific product?
Visit TARIC (EU Customs Database) — enter the product's 10-digit HS code, select Vietnam as the country of origin. The system will display the MFN duty and the preferential duty under EVFTA.
Can newly established businesses take advantage of EVFTA?
Yes. EVFTA does not require a business to have a certain number of years in operation or a certain scale. You only need to meet the rules of origin and prepare complete C/O documentation to enjoy preferential treatment.
How are EVFTA and CPTPP different regarding preferential treatment?
EVFTA eliminates tariffs more deeply and quickly for garments (using Korean fabric). CPTPP requires fabric from CPTPP member countries (which is more difficult). For seafood, EVFTA allows the use of materials from the EU and ASEAN; CPTPP requires materials that are wholly Vietnamese or from CPTPP member countries.
Do you need to export a full container to benefit from EVFTA?
No. EVFTA applies to all export shipments, regardless of quantity. Both FCL (full container load) and LCL (less than container load) can apply for C/O EUR.1 to enjoy preferences.
The EVFTA opens up major opportunities, but procedures to enjoy tariff preferences are quite complex. C/O form EUR.1 is a "golden ticket" that helps Vietnamese goods receive tariff reductions when entering the EU. VTM Logistics provides full-service support for C/O procedures.
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These sources explain the rules discussed above. Check the current requirements for your shipment; examples on this page do not replace the applicable regulations or contract terms.
