The EU-Vietnam Free Trade Agreement (EVFTA) eliminates tariffs on nearly all goods traded between Vietnam and the European Union, phased in over a set schedule since the agreement took effect in 2020. For companies sourcing from Vietnam to sell into the EU, it is one of the most consequential trade agreements Vietnam has signed, materially changing the landed cost math compared to sourcing the same product from a country without a similar deal.
Where this matters in practice
Categories like textiles, footwear, and furniture, long Vietnamese manufacturing strengths, see some of the largest tariff reductions under EVFTA, which is part of why European buyers in these categories have been shifting sourcing toward Vietnam. But the tariff schedule isn’t uniform: some product lines phased down to zero immediately, others are on a 7 to 10 year schedule, and a few sensitive categories are excluded entirely.
The rules of origin requirement
Qualifying for EVFTA’s preferential rate requires meeting specific rules of origin, which for textiles in particular can require sourcing fabric from Vietnam, the EU, or approved partner countries rather than importing it from elsewhere in Asia. This catches companies who assume “made in Vietnam” is enough on its own. It often isn’t, if the raw materials came from the wrong place.
How we handle it
We help you check whether your specific product and its supply chain actually meet EVFTA’s rules of origin before you build a sourcing plan around the preferential tariff rate, so the savings are real and not just theoretical.