EVFTA · FTA guide, rules of origin & tariff schedule

EVFTA.

EU-Vietnam Free Trade Agreement

EVFTA — In Force ✅. Goods, services, investment — comprehensive. 71% EU tariff lines 0% immediately; 99% within 10 years.. India-relevant trade: USD USD 55B.

European Union + VietnamParties

In Force ✅Status

August 2020In force

June 2019Signed

Coverage

What this agreement covers.

Goods, services, investment — comprehensive. 71% EU tariff lines 0% immediately; 99% within 10 years.

Key benefits

Why this agreement matters.

✓ Vietnam gains 99% access to EU market within 10 years
✓ Major boost for Vietnamese textiles, footwear, electronics, seafood in EU
✓ Directly competes with Indian textile, footwear, and pharma exporters in EU market
✓ EU investment in Vietnam creates EU-Vietnam supply chain competing with India

India position

How this FTA relates to India.

Third-party context — affects Indian exporters to EU and Vietnam

Aggregate trade volume among parties: USD 55B

Risk framework

FTA compliance risks.

Risk	Assessment	Mitigation
EVFTA makes Vietnamese textiles and footwear 0% in EU — competing with India	High — Vietnam is India's primary competitor in EU textile market	India must leverage quality, GI products, and compliance documentation to differentiate from Vietnam
EVFTA investment chapter attracts EU FDI to Vietnam over India in some sectors	Medium — EU investors choosing between India and Vietnam	India's domestic market scale and India-EU FTA negotiations are India's primary competitive advantage

Beneficiary verticals

Which sectors benefit.

Textiles Pharma Engineering Agro Footwear Electronics

Frequently asked

FAQ · EVFTA.

How does EVFTA affect Indian textile exporters to EU?

EVFTA is often cited as the most commercially significant risk for Indian textile/garment exports to EU. Vietnamese garments now enter EU at 0–12% (phased over 10 years) while Indian garments face 12% MFN. India-EU FTA when concluded will level this playing field.

What are the EVFTA rules of origin for textiles?

Vietnam must use double transformation (yarn-to-fabric-to-garment) or use EU/CPTPP origin fabrics to qualify for EVFTA preferences. This is a significant compliance requirement for Vietnamese manufacturers.

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EVFTA.

What this agreement covers.

Why this agreement matters.

How this FTA relates to India.

FTA compliance risks.

Which sectors benefit.

FAQ · EVFTA.

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