During his recent visit to Hanoi, European Commissioner for Trade Maroš Šefčovič made a noteworthy statement: “Vietnam’s successful implementation of the EVFTA has inspired other countries in the region.”

Behind this diplomatic remark lies a strategic signal: Brussels is seeking a new commercial gateway through ASEAN, and Vietnam - through the EU-Vietnam Free Trade Agreement (EVFTA) - has become a blueprint for opening that door.

EU-ASEAN trade amid global uncertainty

While the EU is often seen as economically on par with the United States in transatlantic relations, the trade balance frequently leans in Washington’s favor.

From tariffs on steel and aluminum (up to 50% under Section 232) to taxes on automobiles, pharmaceuticals, and semiconductors (around 15%), the EU has found the U.S. to be an unreliable economic partner at times. The risk of sudden “U-turns” in American trade policy has made European firms cautious in their expansion strategies.

In this context, ASEAN has emerged as a promising alternative. With a population of over 660 million and a GDP of $3.9 trillion (2024), growing steadily at 4–5% annually, ASEAN is now the fifth-largest economy globally. It is also the EU’s third-largest non-European trading partner after the U.S. and China, with a trade volume of €258.7 billion in 2024.

ASEAN’s geoeconomic landscape is tightly integrated with global supply chains. The region has become a production and logistics hub in industries such as electronics, textiles, tropical agriculture, and even semiconductors - offering the EU an opportunity to diversify its value chains and assert global independence.

EVFTA: A replicable success story

Among ASEAN’s ten member states, Vietnam was the first to sign a free trade agreement with the EU in 2020. The results have been significant.

Just a few years into its implementation, the Vietnam-EU bilateral trade in goods has increased by €64 billion - a 47% surge. Vietnam’s exports to the EU rose by 60% (€20 billion), while EU exports to Vietnam increased by only 10% (€1–2 billion).

These figures underscore both the success and imbalance of the agreement - clearly skewed in Vietnam’s favor. This trade gap is something the EU is keen to address in the coming years.

At the same time, Vietnam’s success story has become a case study for other ASEAN nations: signing an FTA with the EU can be beneficial, even if it requires meeting higher standards and implementing broader reforms. The EVFTA has effectively become a “sample lesson” for ASEAN ahead of future negotiations with Brussels.

Vietnam as ASEAN’s trade pioneer

During Šefčovič’s visit, the EU and Vietnam agreed to establish a joint task force to review and resolve implementation challenges within the EVFTA. This is a crucial step toward turning the agreement into a living, adaptable mechanism.

Technical recommendations from the EU to Vietnam could also become future ASEAN-wide benchmarks. Key examples include:

UNECE: Global safety and environmental standards for automobiles and components.

SPS: Sanitary and phytosanitary standards, with mutual recognition across all 27 EU member states - providing reciprocal market access.

If these mechanisms are successfully implemented in Vietnam, they are likely to be replicated across ASEAN. Beyond trade, the EU and Vietnam are also expanding cooperation in strategic sectors such as renewable energy, semiconductors, logistics, telecommunications, batteries, digital technology/AI, and aviation. These are all areas where ASEAN holds competitive advantages - but with its “first-mover” advantage, Vietnam is positioned to play a central role.

EU: A key foreign policy partner for Vietnam

Deputy Prime Minister Bui Thanh Son reaffirmed that the EU is a vital partner in Vietnam’s foreign policy. He highlighted tangible progress in bilateral cooperation across numerous areas: trade, science and technology, national defense and security, education, environment, culture, and tourism.

Vietnam and the EU have established eight regular dialogue mechanisms and continue to collaborate closely at multilateral forums.

The Deputy Prime Minister also welcomed ongoing discussions to elevate relations to a Comprehensive Strategic Partnership. He put forward key proposals: that EU member states swiftly ratify the EU-Vietnam Investment Protection Agreement (EVIPA), lift the IUU “yellow card” on Vietnam’s fisheries, ensure effective implementation of the EVFTA, and voice strong support for peaceful dispute resolution in the South China Sea in accordance with international law.

Challenges ahead

The road ahead is not without obstacles. There are three major bottlenecks:

Stringent EU standards: Policies on deforestation (EUDR), carbon emissions, and forced labor present a compliance burden for ASEAN economies reliant on agricultural exports.

Intra-ASEAN disparities: ASEAN is not a unified bloc economically - Singapore is highly developed, while several members remain low-income, complicating regional FTA negotiations.

Value-based differences: The EU links trade with human rights and environmental issues - an approach not all ASEAN nations are eager to include in trade talks.

Still, if these challenges can be navigated, ASEAN will gain a stable new partner, and the EU will secure a strategic foothold in the most dynamic economic region in the world.

Vietnam’s pivotal role in EU-ASEAN relations

Vietnam is emerging as the cornerstone of this new EU-ASEAN trade chapter. As the first country to enact the EVFTA and now preparing to upgrade ties to a Comprehensive Strategic Partnership, Vietnam is seizing both economic gains and diplomatic leverage.

By smartly aligning institutions, standards, and shared interests, Vietnam is not just an inspiration to ASEAN - it is becoming a bridge connecting the EU with Southeast Asia in an era of global trade instability.

Tu Giang