FTAs open wider doors for Vietnamese products

The network of free trade agreements (FTAs) is expanding export opportunities for Vietnamese products, from traditional markets in Asia to Europe, North America and the Middle East. For businesses in Dong Nai, this presents an opportunity to expand market access and diversify markets.

Visitors explore products at the Viet Nam International Sourcing 2026 exhibition in Ho Chi Minh City in early September.

Alongside these opportunities, however, rapid changes in global trade are requiring businesses and the economy as a whole to proactively adapt to new standards and rules.

More markets, more opportunities for Vietnamese products

After years of international economic integration, Vietnam has established a network of 17 FTAs currently in force, connecting the country with major economies and trading blocs. From ASEAN, China, Japan and the Republic of Korea to markets covered by the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the European market, Vietnamese products have more opportunities to reach consumers and participate more deeply in global supply chains.

The most visible benefit of FTAs is tariff preferences. As import duties are gradually reduced under the agreements' tariff schedules, Vietnamese products gain greater price competitiveness. However, the impact of FTAs goes far beyond tariffs.

Economic experts say the potential offered by FTAs remains substantial. Opportunities have yet to be fully tapped, as Vietnamese businesses currently utilize only around 37% of available tariff preferences. An FTA delivers its full benefits only when products meet the rules of origin and the requirements of the importing market. Businesses can still export without meeting these conditions, but they will not be eligible for preferential tariffs.

The EU-Vietnam Free Trade Agreement (EVFTA) opens access to the 27-nation European market, while the CPTPP connects Vietnam with economies with strong purchasing power and high standards. The Regional Comprehensive Economic Partnership (RCEP) creates a vast trading space in Asia. Meanwhile, the UK-Vietnam Free Trade Agreement (UKVFTA) maintains trade preferences with the United Kingdom. Meanwhile, the Vietnam-Israel Free Trade Agreement (VIFTA) provides an additional avenue for accessing the Israeli market.

In 2026, the Vietnam-UAE Comprehensive Economic Partnership Agreement (CEPA) continues to open up another avenue for Vietnamese businesses. The UAE is not only a consumer market but also an important trade, logistics and distribution hub for the Middle East. Therefore, the opportunities created by the CEPA extend beyond boosting exports to the UAE, potentially giving Vietnamese businesses broader access to markets across the Middle East.

The growing number of FTAs gives businesses more options to diversify markets, find customers and reduce dependence on individual markets. For Dong Nai, key product groups in which the city has strong advantages, including machinery and equipment, wood products, textiles and garments, footwear, agricultural products and processed foods, have further opportunities to expand into overseas markets. Notably, Dong Nai was among five provinces and cities – together with Tuyen Quang, Ho Chi Minh City, Hanoi and Hai Phong – that received Certificates of Merit from the Prime Minister for outstanding achievements in implementing FTAs in 2025.

According to Nguyen Kim Long, Member of the Standing Board of the Dong Nai City Party Committee and Standing Vice Chairman of the Dong Nai City People’s Committee, Dong Nai regards the proactive and effective implementation of new-generation FTAs as a key strategic task to expand its development space, enhance competitiveness, promote sustainable growth and deepen international economic integration.

Proactively adapting to new requirements

In the past, the main benefit businesses looked for when discussing FTAs was tariff reductions. Today, the picture is much broader, as markets are imposing increasingly stringent requirements on quality, traceability, the environment, labor and sustainable development.

These requirements pose significant challenges to businesses and production sectors. In the wood industry, requirements for legal sources of raw materials, traceability and environmental standards are becoming increasingly important. Textile, garment and footwear businesses must pay greater attention to their sources of materials and accessories to meet rules of origin. For agricultural products, the focus is on production areas, food safety, traceability and consistent quality. For industrial products, meanwhile, technical standards and the ability to participate in supply chains are becoming decisive factors in competitiveness.

 These requirements are putting pressure on businesses to upgrade their operations. They need to invest in technology, standardize production processes, improve product quality, save energy, control raw materials and establish traceability systems. At the same time, they need to develop their brands and gradually shift from contract manufacturing toward producing higher-value-added products.

Vo Quang Hieu, Deputy General Director of Thuan Loi Rubber Co., Ltd. in Thuan Loi commune, said the company is working to bring processed rubber products to international markets. FSC certification is a mandatory requirement for the company to overcome technical barriers and export its products to major markets such as the EU, the United States and Japan. The company currently has 3,500 hectares of rubber-growing areas certified under the FSC system.

Businesses say these requirements are particularly relevant to Dong Nai, which has a strongly export-oriented production base. The city’s industrial strengths, transport infrastructure, connectivity and industrial park system provide a foundation for Vietnamese products to reach farther into international markets. However, these advantages can only be fully leveraged when businesses simultaneously improve product quality and technology and strengthen their ability to meet international standards.

FTAs have opened many more doors for Vietnamese products. Amid continued volatility in global trade, the issue is no longer a lack of markets, but whether businesses can pass through these doors and establish a lasting foothold. Proactive adaptation, higher quality and market diversification are the keys to turning FTA preferences into actual orders, market share and real added value.

By V.The – Translated by M.Nguyet, Minho