The European Union's (EU) trade policy significantly impacts Vietnamese exports, prompting concern and adaptive strategies from local businesses. Recent discussions between Vietnamese officials and European business representatives highlighted both opportunities and challenges within this dynamic relationship.
On March 2, 2025, during a roundtable with Prime Minister Pham Minh Chinh and various European companies, representatives voiced their worries about tightening import-export regulations. The Vice Chairman of the European Chamber of Commerce in Vietnam (EuroCham), Nguyen Hai Minh, emphasized how stringent policies could hinder large European corporations, which contribute to Vietnam's economic growth and job creation.
Since the implementation of Decree 08/2015, the flexible model of local import-export—where goods produced for export are delivered nationally—has enhanced competitiveness. This mechanism has decreased costs, shortened delivery time, and bolstered competitiveness against other markets. Nonetheless, recent discussions revealed the Ministry of Finance's idea of eliminating this mechanism altogether, causing alarm among businesses reliant on it.
Minh proposed retaining the local import-export mechanism until it is formalized by law and called for allowance for all foreign traders, regardless of their presence in Vietnam, to participate as before. The Prime Minister acknowledged the concerns and instructed Vice Prime Minister Ho Duc Phoc to arrange follow-up meetings to resolve these issues.
Concerns were also raised by Koen Soenens, the Business and Marketing Director of Deep C, around access to green energy for EU investors and bureaucratic customs processes. Similarly, Andre de Jong, CEO of Bosch, noted difficulties accessing investment support funds due to high thresholds and suggested revisions to attract more capital.
Adding to the efficacy debate, Deputy Minister of Finance Nguyen Thi Bich Ngoc informed attendees of the streamlined investment registration process—now reduced to 15 days per project, excluding those involving state land allocations which take 45 days for approval. She asserted continued efforts to improve investment conditions, especially for high-tech projects, reflecting the government’s commitment to reform.
These reforms are complemented by automated customs measures aiming to expedite processing and ease the trading process. Ngoc also indicated upcoming audits of procedures related to investment and tax to simplify bureaucracy without compromising state management.
On another note, Vietnamese exporters eye high standards set by the EU as both hurdles and prospects. To engage this significant market, they must align their product quality with EU safety and environmental standards. This includes passing rigorous inspections for food safety, residue levels of pesticides, and other technical barriers.
The first months of 2025 have shown promising trends for Vietnamese seafood exports, particularly shrimp and catfish, amid changing dynamics with China, which remains the largest importer, stimulating sector growth. Nonetheless, establishing sustainable practices and demonstrating commitment to environmental friendliness will remain pivotal.
Among the promising developments, Vietnam’s exports of tires for trucks and buses are particularly notable. The latest statistics reveal substantial growth, positioning Vietnam as the fourth largest supplier to the EU. The country exported USD 201.7 million worth of these products to the EU, accounting for 12.6% of the bloc’s total imports. By 2024, this figure is expected to reach USD 275 million, illustrating Vietnam's growing influence.
Though showing promise, EU regulators are vigilant. Following increasing imports of truck and bus tires from various nations, trade defense measures may soon be employed affecting Vietnamese products. The Trade Defense Division noted the EU had launched investigations to protect local manufacturers from unfair competition.
To avoid complications, Vietnamese businesses must remain proactive, maintaining compliance with EU regulations and preparing for potential investigations. They are encouraged to prepare comprehensive documentation to avoid complicity with unfair trade practices and cooperate with regulatory bodies as needed.
Looking forward, Vietnamese exporters to the EU must not only focus on compliance with current standards but also invest heavily in research and development for eco-friendly products. Strategies should include continuous information gathering to adapt quickly to shifting regulations governing food safety, environmental impact, and quality assurance.
With considerable effort, there lies substantial potential for Vietnamese enterprises to expand their footprint within the EU market, provided they navigate the current challenges effectively. Meeting EU expectations will solidify Vietnam’s position as a reliable trade partner, promoting long-term economic benefits.