EVFTA is a "door" for Vietnamese goods to expand their market share in the German market, especially in the context that many of Vietnam's competitors in Asia and ASEAN in the German market do not have an FTA with the EU.

According to the General Department of Vietnam Customs, in the first five months of 2022, Vietnam's export turnover to Germany reached USD 3.6 billion. In which, textile and garment products reached USD 409 million; footwear of all kinds reached USD 518 million; other machinery, equipment, tools and spare parts reached USD 613 million.

The Ministry of Industry and Trade affirmed that Germany is the main export market in the European region for many key export products of Vietnam such as footwear, clothing, vegetables, fruits, seafood, coffee, and wooden furniture.

Although most of these products only account for a small share of Germany's total import turnover, the growth rate of exports to Germany is on an increasing trend, and many Vietnamese goods have gained a certain position in this market.

In particular, after the EU-Vietnam Free Trade Agreement (EVFTA) took effect, Vietnamese enterprises exporting goods to Germany have the opportunity to cut tariffs, reduce production costs, improve competitiveness, and reduce non-tariff barriers, etc.

EVFTA is a "door" for Vietnamese goods to expand their market share in the German market, especially in the context that many of Vietnam's competitors in Asia and ASEAN in the German market do not have an FTA with the EU.

In the opposite direction, the import turnover of goods from Germany reached USD 1.5 billion. In the EVFTA, Vietnam also commits to eliminating tariffs for a lot of raw materials and machinery for domestic production imported from EU member states, including Germany.

Kylie Nguyen