Despite COVID-19 cutting into demand for textiles and garments, enterprises have poured investment into materials to improve production capacity, completing the supply chain and taking advantage of new generation free trade agreements (FTAs) that have come into effect.

Thanks to the preferential tariffs under the EU-Vietnam Free Trade Agreement, footwear exports to the bloc’s 27 member countries increased by 19.2% year-on-year in the first quarter of 2021.

The first batch of Hai Duong province’s Thanh Ha “thieu” lychees left Noi Bai International Airport in Hanoi on June 7 for the European Union (EU).

Alongside India, Vietnam continues to be considered as the most interesting potential market in the Asia-Pacific region by German businesses.

With consumption trends in the EU market changing due to the impact of the COVID-19 pandemic, domestic businesses have been advised to follow new trends and meet stringent requirements in an effort to boost exports to the demanding market.

Key recent IP developments and trends in Vietnam

Since the EU-Vietnam free trade agreement (EVFTA) took effect in August 2020, Belgium has played a significant role in promoting trade and foreign investments into Vietnam.

The foreign investment consulting firm Dezan Shira & Associates’ Vietnam Briefing website has published an analysis on a trend of increasing EU investment in Vietnam and the reasons why the nation has become a formidable competitor in attracting foreign investment in Southeast Asia.

With a foreign trade volume of about US$41.3 billion, the EU is currently among Vietnam’s largest trading partners: according to the European Commission, Vietnam is the EU’s 16th-largest trade partner and within the Association of Southeast Asian Nations (ASEAN)

Almost 5 billion USD worth of Vietnamese goods exported to the EU has benefited from preferential tariffs under the EU-Viet Nam Free Trade Agreement (EVFTA), according to the Ministry of Industry and Trade (MoIT).