Vietnam’s trade surplus with EU expands amid economic headwinds

Surplus tops US$18 billion

Trade between Vietnam and the EU maintained momentum during the January–May period, supported by the EU – Vietnam Free Trade Agreement (EVFTA) and sustained demand for key Vietnamese exports, even as the EU grappled with inflationary pressures and sluggish consumer spending.

Latest data from the Customs Department showed bilateral trade reaching US$36 billion during the five-month period. Exports to the EU rose 16.9% from a year earlier to US$26 billion, while imports increased 21.6% to nearly US$8 billion, leaving Vietnam with a trade surplus of about US$18.1 billion.

Strong performances were recorded across major export categories, including electronics, garments and textiles, wood products and agricultural commodities. Imports from the EU were concentrated on machinery, equipment and production technologies.

The bloc’s growing contribution also helped lift Vietnam’s total trade turnover to more than US$445 billion in the first five months, up 25% year-on-year.

Vietnam is currently the EU’s largest trading partner in ASEAN. In 2025, bilateral trade approached US$74 billion, with Vietnamese exports to the bloc reaching US$56.2 billion, up 8.6%, while imports rose 5.4% to US$17.6 billion. The figures translated into a record trade surplus of US$38.6 billion.

Last year, computers, electronic products and components led export earnings at US$10.89 billion, followed by machinery, equipment and spare parts at US$7.42 billion, and phones and components at US$6.9 billion, all posting growth from the previous year.

The Ministry of Industry and Trade attributed the strong performance largely to the EVFTA, which has significantly expanded market access for Vietnamese goods in the EU’s nearly 500-million-consumer market. Rising exports and a steadily widening trade surplus have further strengthened Vietnam’s role in global supply chains.

Since the agreement took effect in August 2020, bilateral trade has surged. Bilateral trade turnover increased from US$49.7 billion in 2020 to US$68.4 billion in 2024 before approaching US$74 billion in 2025. Over the same period, Vietnam’s exports to the EU grew from US$35.1 billion to US$56.2 billion, while its trade surplus nearly doubled from US$20.5 billion to almost US$39 billion.

The sustained growth highlights the Vietnam – EU economic partnership as one of the country’s most stable and successful trade relationships. European businesses increasingly regard Vietnam as a strategic link in global supply chains thanks to its strong FDI attraction, diversified export markets and extensive network of free trade agreements.

Raising supplier standards

The steady rise in exports and trade surplus since the EVFTA entered into force reflects Vietnamese businesses’ growing ability to meet the EU’s stringent quality and regulatory requirements. Many products have effectively leveraged tariff preferences under the agreement to generate export revenues exceeding US$1 billion, while local firms have deepened their integration into the supply chains of European multinational corporations.

At the same time, exporters face mounting pressure as the EU tightens rules on environmental protection, carbon emissions, product traceability and corporate responsibility.

Dau Anh Tuan, vice secretary-seneral and director of the Legal Department at the Vietnam Chamber of Commerce and Industry (VCCI), said globalisation continues to create opportunities, but businesses must also adapt to increasingly demanding standards on sustainability, transparency and accountability.

The EU currently accounts for around 13% of Vietnam’s total exports and is becoming an increasingly important destination as the country seeks to diversify markets amid growing global trade uncertainties. According to the Ministry of Industry and Trade, the EU trade landscape is being reshaped by three major trends: US tariff policies, green transition and digital transformation. Together, these forces are redefining global supply chains, import regulations and supplier expectations.

To stay competitive, many textile and garment manufacturers are accelerating investments in green production and sustainable development. Garco 10 Corporation, for example, is investing heavily in modern equipment, digitalisation and smart manufacturing lines at its new factory in Hung Yen province. More than VND142 billion (US$5.39 million) has been earmarked for equipment upgrades and digital transformation, alongside nearly VND40 billion for construction and VND29.5 billion for additional investment projects.

Tran Ngoc Quan, Trade Counsellor at the Vietnam Trade Office in Belgium and the EU, said Vietnamese enterprises must proactively align with the requirements of the European Green Deal while advancing circular economy models, sustainable production and responsible consumption to secure long-term growth in the European market.

Vietnam, EU seek to expand cooperation in trade, investment

Minister of Industry and Trade Nguyen Hong Dien and leaders of relevant departments and agencies on November 25 held a working session with a delegation from the EU-ASEAN Business Council (EU-ABC), the primary voice for European firms within the ASEAN region.