Vietnam has cemented its position as a global trading hub, strategically leveraging a vast network of 18 free-trade agreements (FTA)1 to unlock global markets. For local businesses, these agreements are more than just paperwork; they provide direct pathways to international growth and increased competitiveness. This guide serves as a playbook, designed to help you understand these powerful trade tools, identify new opportunities, and navigate their complexities. With a comprehensive network and global expertise, DHL Express stands ready as the essential logistics partner to make your overseas expansion a reality.
What free-trade agreements does Vietnam have?
Vietnam's proactive trade strategy is built on two primary types of trade pacts: bilateral trade agreements and multilateral trade agreements. This extensive network provides access to approximately 90% of the world's Gross Domestic Product (GDP)2.
Bilateral trade agreements (Two-party deals)
These agreements establish deep, direct trading relationships with a single partner, securing distinct market access advantages for Vietnam.
- EVFTA (EU-Vietnam Free Trade Agreement): One of Vietnam's most significant deals, setting the European Union (EU) to eliminate nearly 99% of all tariffs on Vietnamese goods. It also provides non-tariff benefits, such as reducing regulatory barriers and protecting Geographical Indications (GIs)3.
- UKVFTA (UK-Vietnam Free Trade Agreement): Ensures crucial trade continuity with the United Kingdom post-Brexit. The UK eliminated 85.6% of tariff lines immediately (January 2021), rising to 99.2% by January 2027. This secures tariff-free access for key Vietnamese products like clothing, fabric, and footwear4.
- Other key bilateral FTAs: Vietnam holds independent pacts with key Asian partners like Japan (VJEPA), South Korea (VKFTA), and Chile (VCFTA), often securing deeper trade benefits than regional arrangements.
Multilateral trade agreements (Regional blocs)
These involve multiple countries or economic blocs, establishing vast regional trade zones that streamline operations across continents.
- RCEP (Regional Comprehensive Economic Partnership): As the world's largest trade bloc, this agreement connects ASEAN members with China, Japan, South Korea, Australia, and New Zealand. Its primary benefit is establishing unified Rules of Origin and simplifying customs procedures, crucial for regional supply chains5.
- CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership): This high-standard agreement links Vietnam with 10 other countries across the Pacific Rim, including Canada, Mexico, Australia, Singapore, Malaysia, and Japan. It focuses heavily on reducing tariffs, labor standards, and market liberalization6.
- AANZFTA (ASEAN-Australia-New Zealand Free Trade Agreement): This comprehensive FTA links ASEAN with Australia and New Zealand. It emphasizes liberalization in goods, services, and investment, eliminating tariffs for 90% of the goods traded between the parties7.
- VN-EAEUFTA (Vietnam-Eurasian Economic Union Free Trade Agreement): This agreement links Vietnam to the Russia-led Eurasian Economic Union (EAEU), providing access to markets including Russia, Kazakhstan, and Belarus8.
How Vietnamese exporters can benefit from FTAs
Vietnam's extensive network of FTAs offers a powerful competitive advantage for businesses, providing significant benefits that impact their bottom line and growth potential.
Cost savings
One of the most immediate and tangible benefits of FTAs is the reduction or elimination of tariffs on goods. By lowering these costs, FTAs make Vietnamese products more competitive and appealing in foreign markets. These savings can be passed on to consumers or reinvested back into the business for product development and innovation.
Market access and diversification
FTAs are instrumental in opening up new consumer markets for Vietnamese exporters. The UKVFTA, for instance, gives businesses privileged access to a large and prosperous market. This diversification reduces a business's reliance on a single region, providing greater resilience and stability against unexpected market fluctuations.
Streamlined processes
Beyond tariffs, FTAs simplify complex customs procedures and reduce administrative burdens. The goal of a Vietnam free trade agreement is to make trade as seamless as possible, which means less time spent on paperwork and more time focused on business growth.
How to take advantage of Vietnam's free-trade agreements
The successful implementation of any multilateral trade agreements or bilateral trade agreements relies heavily on logistics. For Vietnamese businesses, it’s not enough to simply have access to 18 FTAs — you need a partner who can help you leverage them into daily competitive reality.
Customs and compliance expertise
Navigating the intricate Rules of Origin and preparing documentation (such as Certificates of Origin) can be a significant challenge, especially for complex Asian-European trade lanes. DHL Express is the expert partner you need, with dedicated teams that understand the nuances of every major trade deal, including the RCEP agreement and EVFTA. We ensure your shipments are fully compliant, which is critical for avoiding costly delays at border crossings and securing the preferential tariffs under Vietnam's trade agreements.
Global network
A major benefit of partnering with DHL Express is our extensive global network. We provide access to all of Vietnam's FTA partner countries, ensuring your products can reach new markets quickly and reliably. Our end-to-end international shipping network is designed to support your business as it grows, connecting your goods from manufacturing hubs in Hai Phong or Ho Chi Minh City to customers across the CPTPP region and beyond.
Digital tools
Managing the high volume of documentation required for FTA compliance can be complex. DHL Express provides digital tools like MyDHL+ to help businesses streamline these processes. Our platforms give you visibility and control, empowering you to manage your shipments and ensure all necessary paperwork is in order for a seamless DHL delivery, which ultimately accelerates your time-to-market.
Ride Vietnam's FTAs to global business success
A strategic approach to leveraging FTAs can transform your business from a local success story into a global powerhouse. As Vietnam’s network of trade agreements continues to expand, so does your competitive frontier. DHL Express provides the logistical excellence and expertise required for shipping from Vietnam efficiently and navigating these complexities. From understanding the specifics of the RCEP agreement to ensuring compliance with the CPTPP, our support ensures your business can focus on what it does best.
Ready to turn Vietnam’s FTAs into your undeniable competitive advantage? Open a DHL Express business account today to unlock new markets and accelerate your global success.
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