The garment and textile sector records improved export to the EU. (Illustrative photo: Tran Viet/VNA)

The European Chamber of Commerce in Vietnam (EuroCham) released the Business Confidence Index (BCI) survey conducted by Decision Lab, which shows that EVFTA has opened the door for European businesses to enter the potential Vietnamese market.

Nearly two-thirds of respondents said they have recorded moderate to very large benefits (a significant increase from 18% in 2023). They cited key advantages of tariff reduction, improved market competitiveness, more market access opportunities, appropriate supply chains, improved transparency in trade, and tightened legal framework.

The EVFTA has also significantly boosted Vietnam’s exports to Europe, surging from 35 billion EUR in 2019 to over 48 billion EUR in 2023, with growth particularly  pronounced in sectors such as electronics, textiles, footwear, agriculture, and seafood.

The EU, already a major investor in the country, has poured 28 billion euros into 2,450 projects, underscoring its continued confidence in Vietnam's potential. Notably, EU investors have added 800 million EUR in foreign direct investment between January and September 2023, bucking the global trend of declining FDI.

EuroCham Vietnam is actively championing the full ratification of the EU-Vietnam Investment Protection Agreement (EVIPA) as a critical step in unlocking the full potential of the EVFTA for attracting foreign direct investment. With 18 of 27 EU members ratified the Agreement, EuroCham Vietnam is working with European stakeholders to encourage the remaining states to follow suit.