I. Overview of Vietnam’s Free Trade Agreements

In recent years, Vietnam has actively promoted trade cooperation with countries and regions around the world. It has established trade relations with more than 150 countries and regions, signed 16 free trade agreements (FTAs), and established free trade relations with more than 60 economies. Through these agreements, Vietnam has occupied an important position in the global trade network.

II. Major Free Trade Agreements and Their Impact

1. Regional Comprehensive Economic Partnership (RCEP)
RCEP is one of the world's largest free trade agreements, covering the 10 ASEAN countries and five other Asia-Pacific countries including China, Japan, South Korea, Australia and New Zealand. The agreement was signed on November 15, 2020 and will take effect on January 1, 2022.
Impact on Vietnam
Vietnam has become an important regional production and trade hub under RCEP by virtue of its geographical location, preferential investment policies, foreign trade policies and labor advantages. The implementation of RCEP will further enhance Vietnam's importance in the regional supply chain and promote trade and investment between it and other member countries.

2. Vietnam-EU Free Trade Agreement (EVFTA)
The EVFTA officially came into effect on August 1, 2020. The agreement stipulates that tariffs will be gradually eliminated within ten years, and by the end of July 2030, about 99% of the products in bilateral trade in goods will be subject to zero tariffs.
Impact on Vietnam
The implementation of EVFTA has significantly reduced trade barriers between Vietnam and the EU and promoted the growth of bilateral trade. Vietnam's export products such as agricultural products, seafood, textiles and clothing will benefit from it and increase their competitiveness in the EU market.

3. Vietnam and the United Kingdom of Great Britain and Northern Ireland Free Trade Agreement (UKVFTA)
UKVFTA comes into force in 2021. The agreement came into effect quickly after the UK's withdrawal from the EU, providing a new framework for trade between the two countries.
Impact on Vietnam
In 2021, after the UKVFTA came into effect, UK exports to Vietnam increased by 24%, and Vietnam's exports to the UK increased by 19%. Although Vietnam's exports to other major markets declined in 2023, its exports to the UK still increased by about 1.9%, and the UK's imports from Vietnam increased by nearly 3%. UKVFTA effectively safeguarded Vietnam's share in the UK market and promoted the development of bilateral trade.

4. Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)
The CPTPP is a free trade agreement signed by 11 countries in the Asia-Pacific region and came into effect on December 30, 2018.
Impact on Vietnam
Vietnam's exports to CPTPP member countries in the Americas (Canada, Mexico, Peru, Chile) have grown strongly. In particular, Canada, Mexico, and Peru are the markets that Vietnam has established FTA relations with for the first time, and the tariff preferences in the CPTPP have had a positive impact on Vietnamese products exported to these markets. In addition, through Peru, Vietnamese goods can also enter its neighboring markets such as Colombia, Ecuador, Bolivia and the western region of Brazil.

III. Future Free Trade Agreement Negotiations and Prospects

Vietnam’s Ministry of Industry and Trade said it will actively participate in the negotiation and upgrading of multiple free trade agreements, including:

(1) ASEAN-Canada Free Trade Agreement
(2) China-ASEAN Free Trade Agreement upgraded to version 3.0
(3) ASEAN-India Free Trade Agreement

In addition, Vietnam is also working to complete the negotiations on free trade agreements with the European Free Trade Association (EFTA) and the United Arab Emirates. These new agreements will further expand Vietnam's international market and enhance its position in global trade.

By actively signing and implementing free trade agreements, Vietnam has continuously expanded its influence and market share in global trade. These agreements have not only reduced export tariffs on Vietnamese goods and improved the competitiveness of its products in the international market, but also attracted more international investment and promoted the sustained growth of Vietnam's economy. With the negotiation and entry into force of more free trade agreements, Vietnam is expected to play a more important role on the global economic stage.