Vietnamese Free Trade Agreements Overview

12 October 2025

Anh Tho Andres

Lately, the question arises whether Vietnam would become a leading destination for FDI and a trading partner, thanks to its ongoing efforts to enhance its capabilities and linkages to global trade. Therefore it was necessary ro identify new opportunities with business partners coming from these locations. 

Vietnam has emerged as a significant player in global trade, leveraging an extensive network of free trade agreements (FTAs) to enhance its economic integration. 

The main trade partners are identified as countries or regions with significant trade volumes or strategic importance, such as the United States, China, the European Union, Japan, South Korea, and ASEAN members, among others.

Below is a comprehensive list of Vietnam’s trade agreements based on information from reputable sources, including government websites, international trade organisations, and recent analyses up to 2025. 

Multilateral and Regional Trade Agreements

Vietnam is a signatory to several multilateral and regional trade agreements that involve multiple key trade partners. 

These agreements are critical for Vietnam’s export-oriented economy:

World Trade Organisation (WTO)

• Status: Vietnam became the 150th member on January 11, 2007.
• Partners: Global WTO members, including major trade partners like the United States, China, EU, Japan, South Korea, and others.
• Details: Vietnam committed to WTO agreements on Customs Valuation, Technical Barriers to Trade (TBT), and Sanitary and Phytosanitary Measures (SPS), ensuring non-discriminatory trade practices. This membership opened access to global markets under Most Favored Nation (MFN) principles.
• Impact: Facilitates Vietnam’s integration into global trade, with tariff reductions and market access for exports like electronics and textiles.

ASEAN Free Trade Area (AFTA)

• Status: Effective since 1993, as part of Vietnam’s membership in the Association of Southeast Asian Nations (ASEAN).
• Partners: ASEAN members (Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand).
• Details: AFTA reduces tariffs to 0–5% for most goods within ASEAN, promoting a competitive trading region. Vietnam benefits from preferential tariffs and unified rules of origin.
• Impact: Strengthens intra-ASEAN trade, with Singapore, Thailand, and Malaysia as key export markets for Vietnam’s agricultural and manufactured goods.

Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)

• Status: Effective for Vietnam since January 14, 2019.
• Partners: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore.
• Details: The CPTPP eliminates 95–98% of tariffs among members and includes high standards for intellectual property, labour, and digital trade. Vietnam’s Ministry of Planning and Investment forecasts a 1.3% GDP increase by 2035.
• Impact: Boosts Vietnam’s exports to Canada, Mexico, and Japan, particularly in textiles, footwear, and seafood. This initiative enhances high-tech investment, supporting Vietnam’s semiconductor ambitions.

Regional Comprehensive Economic Partnership (RCEP)

• Status: Effective since 2022.
• Partners: ASEAN members (Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, Vietnam) plus Australia, China, Japan, South Korea, and New Zealand.
• Details: RCEP aims to eliminate ~90% of tariffs within 20 years, with unified rules of origin to facilitate supply chains. It focuses less on labour, environment, or subsidies compared to CPTPP.
• Impact: Strengthens trade with China (Vietnam’s largest trading partner), Japan, and South Korea, particularly in electronics and intermediate goods. However, it raises concerns about over-reliance on Chinese supply chains.

ASEAN-China Free Trade Agreement (ACFTA)

• Status: Effective since 2002, upgraded in 2015.
• Partners: China and ASEAN members.
• Details: Reduces tariffs on ~90% of goods and facilitates investment. China’s economic size and proximity drive Vietnam’s trade intensity, with intermediate goods comprising ~70% of bilateral trade in 2023.
• Impact: China is Vietnam’s largest import source for components used in manufacturing exports. However, concerns exist about trade fraud and rules of origin violations.

ASEAN-Japan Comprehensive Economic Partnership (AJCEP)

• Status: Effective since 2008.
• Partners: Japan and ASEAN members.
• Details: Lowers tariffs on goods like electronics and automotive parts, with commitments to services and investment liberalisation.
• Impact: Japan is a key market for Vietnam’s textiles and seafood, and a major FDI source in manufacturing.

ASEAN-Korea Free Trade Agreement (AKFTA)

• Status: Effective since 2007.
• Partners: South Korea and ASEAN members.
• Details: Eliminates tariffs on ~90% of goods, with focus on electronics, machinery, and agricultural products.
• Impact: South Korea is a top export market for Vietnam’s electronics and a significant investor in high-tech sectors.

ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA)

• Status: Effective since 2010.
• Partners: Australia, New Zealand, and ASEAN members.
• Details: Reduces tariffs on 90–100% of goods, with commitments to services and investment.
• Impact: Boosts Vietnam’s agricultural exports (e.g., rice, seafood) to Australia and New Zealand, and attracts FDI in manufacturing.

ASEAN-India Free Trade Agreement (AIFTA)

• Status: Effective since 2010.
• Partners: India and ASEAN members.
• Details: Lowers tariffs on goods like textiles, chemicals, and agricultural products, though sensitive sectors retain protection.
• Impact: India is a growing market for Vietnam’s electronics and agricultural exports, but trade volume remains smaller than with other partners.

Bilateral Free Trade Agreements

Vietnam has also signed bilateral FTAs with key trade partners to deepen economic ties:

U.S.-Vietnam Bilateral Trade Agreement (BTA)

• Status: Signed in 2000, effective since December 10, 2001.
• Partner: United States.
• Details: Covers trade in goods, services, intellectual property, investment protection, and transparency. Reduced U.S. tariffs on Vietnamese goods from ~40% to ~3%. Vietnam committed to market reforms, phased in over the years. The U.S. granted Vietnam permanent normal trade relations (PNTR) in 2006, supporting WTO accession. Impact: Bilateral trade grew from $2.9 billion in 2002 to $149.6 billion in 2024, with Vietnam as the U.S.’s 6th largest import source. Key exports include electronics and textiles, though issues like trade surplus and non-market economy status persist.
• Note: The U.S. and Vietnam agreed to start trade agreement talks in April 2025, aiming to reduce non-tariff barriers, but no new FTA has been finalised.

EU-Vietnam Free Trade Agreement (EVFTA)

• Status: Signed June 30, 2019, effective since August 1, 2020.
• Partner: European Union (27 member states).
• Details: Eliminates 99% of tariffs over 10 years, with provisions for services, investment, and sustainable development. The EU-Vietnam Investment Protection Agreement (EVIPA) awaits ratification by all EU members (16 ratified by October 2023).
• Impact: Total trade reached €64.2 billion in 2023, with Vietnam exporting electronics, footwear, and coffee, and the EU exporting high-tech goods. The EU is a top FDI source in Vietnam’s manufacturing sector.

UK-Vietnam Free Trade Agreement (UKVFTA)

• Status: Effective since May 1, 2021 (post-Brexit continuation of EVFTA terms).
• Partner: United Kingdom. Details: Mirrors EVFTA, eliminating 99% of tariffs over 7 years, with a focus on goods, services, and investment.
• Impact: Supports Vietnam’s exports of textiles and seafood to the UK, maintaining trade continuity post-Brexit.

Vietnam-Japan Economic Partnership Agreement (VJEPA)

• Status: Effective since 2009.
• Partner: Japan.
• Details: Reduces tariffs on 88% of goods, with Japan lowering barriers on Vietnam’s agricultural and fishery products, and Vietnam opening markets for Japanese machinery and electronics.
• Impact: Complements AJCEP, strengthening Japan’s role as a top export market and FDI source.

Vietnam-Korea Free Trade Agreement (VKFTA)

• Status: Effective since 2015.
• Partner: South Korea.
• Details: Eliminates tariffs on 89% of goods, focusing on electronics, textiles, and agricultural products. Complements AKFTA.
• Impact: Enhances South Korea’s position as a key market for Vietnam’s smartphones and garments, and a leader in FDI for technology.

Vietnam-Chile Free Trade Agreement

• Status: Effective since 2014.
• Partner: Chile.
• Details: Reduces tariffs on 87% of goods, with Vietnam exporting seafood and textiles, and Chile exporting copper and wine.
• Impact: Modest trade volume but diversifies Vietnam’s markets in Latin America.

Vietnam-Cuba Free Trade Agreement

• Status: Effective since 2020.
• Partner: Cuba.
• Details: Lower tariffs on goods like rice, textiles, and pharmaceuticals, with Cuba exporting vaccines and medical equipment.
• Impact: Limited trade volume but supports Vietnam’s outreach to non-traditional markets.

Vietnam-Israel Free Trade Agreement

• Status: Signed in 2023, effective since 2024.
• Partner: Israel.
• Details: The agreement eliminates tariffs on 93% of goods, with Vietnam exporting electronics and agricultural products, and Israel exporting high-tech equipment.
• Impact: Enhances Vietnam’s access to Israel’s technology sector, though trade remains small.

Vietnam-Eurasian Economic Union Free Trade Agreement (VN-EAEU FTA)

• Status: Effective since 2016.
• Partners: Russia, Belarus, Kazakhstan, Armenia, Kyrgyzstan.
• Details: Reduces tariffs on 90% of goods, with Vietnam exporting seafood and textiles, and EAEU exporting machinery and energy products.
• Impact: Russia is the primary partner, with growing trade in agricultural goods, though geopolitical tensions limit potential.

Additional Notes

• Total FTAs: Vietnam is a signatory to 18 active and planned FTAs, covering bilateral and multilateral agreements.
• Key Trade Partners: China (largest import source), the U.S. (largest export market), the EU, Japan, South Korea, and ASEAN members dominate Vietnam’s trade. In 2023, U.S.-Vietnam trade was $124.27 billion, EU-Vietnam trade was €64.2 billion, and China-Vietnam trade was significant due to supply chain integration.
• Emerging Agreements: Vietnam is negotiating potential FTAs, such as with Thailand (via EU-Thailand FTA discussions indirectly affecting ASEAN) and exploring deeper U.S. ties, though non-market economy status remains a hurdle.
• Challenges: Issues include trade imbalances (e.g., U.S. trade deficit), rules of origin violations (e.g., Chinese goods relabeled as “Made in Vietnam”), and bureaucratic hurdles affecting FDI.
• Strategic Importance: FTAs like CPTPP, RCEP, and EVFTA position Vietnam as a hub for high-tech manufacturing and a “friendshoring” partner, particularly for the U.S. and EU, amid efforts to diversify from China.

Critical Perspective

Vietnam’s extensive FTA network reflects its open policy success, as noted in the World Bank’s 2020 reports, driving export-led growth. However, over-reliance on China for intermediate goods, trade surpluses with the U.S., and weaker labour/environmental provisions in agreements like RCEP raise concerns. The World Bank’s optimism about trade openness may underplay these vulnerabilities, and Vietnam must address bureaucratic transparency and infrastructure to maximise FTA benefits.

(Source: various sources combined, assisted by AI)


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