EVFTA Opens Wider Export Opportunities for Phu Tho Businesses

More than five years after the EU–Vietnam Free Trade Agreement (EVFTA) entered into force, businesses in Phu Tho Province are increasingly capitalising on its benefits to expand into international markets and integrate more deeply into global supply chains. To strengthen their competitiveness in Europe, enterprises are now focusing on improving corporate governance, meeting green production standards and complying with rules of origin.

From Tariff Preferences to Market Expansion

The European Union (EU) remains one of the most attractive export destinations for Vietnamese products, including those from Phu Tho. When the EVFTA took effect, the EU eliminated tariffs on approximately 70% of tariff lines, providing significant advantages for a wide range of products, including agricultural produce, tea, timber, textiles, footwear and electronic components. The remaining tariffs are being phased out under the agreement through 2030.

Processing export mango products at Tien Ngan Investment and Trading Co., Ltd.

According to Hoang Xuan Phu, Deputy Director of the Department of Industry and Trade, the EVFTA has not only opened access to a vast new market but has also encouraged the province to shift toward a higher-quality growth model.

Following the province’s administrative restructuring, Phu Tho has continued strengthening its international economic integration framework while expanding awareness programmes on rules of origin, technical standards and EU market requirements. The province is also supporting businesses through market information services, trade promotion and investment attraction initiatives.

Phu Tho currently has more than 1,000 enterprises engaged in import and export activities. During the first six months of 2026, the province’s total import-export turnover reached approximately $48.77 billion, with products exported to major markets including Germany, France, the Netherlands, the United Kingdom, South Korea, Japan and the United States.

Many local enterprises have proactively leveraged the EVFTA to increase product value.

Hoai Trung Tea Co., Ltd., located in Chi Tien Commune, has invested in organic tea-growing areas, developed Five-Star OCOP (One Commune One Product) products and expanded exports to several EU countries.

Likewise, agricultural products such as Doan Hung pomelos and Tan Lac pomelos have entered European markets by strictly complying with production standards and rigorous quality control procedures required by EU import regulations.

According to the Sub-Department of Crop Production and Plant Protection under the Department of Agriculture and Environment, the province has issued more than 660 growing area codes covering pomelos, oranges, bananas, tea, wax gourds, pumpkins and vegetables. Of these, 109 growing area codes have been approved for exports to markets including the EU, South Korea and China.

Meanwhile, the province’s wood-processing sector—supported by more than 123,000 hectares of planted forests and approximately 200 enterprises and cooperatives—is continuing to modernise production technologies and develop higher value-added wood products for export.

Manufacturing export-oriented wood products at Gemmy Tan Son Joint Stock Company.

Many foreign-invested enterprises operating in the province are also benefiting from the EVFTA.

According to representatives of COSMOS Co., Ltd., located in Thuy Van Industrial Park in Nong Trang Ward, although most of the company’s direct customers are American businesses, a large proportion of its products are ultimately distributed across European markets. Tariff preferences under the EVFTA have encouraged international partners to increase orders from Vietnam, creating additional opportunities for manufacturers in Phu Tho.

Meeting Higher Standards

Beyond product quality, the EU market places increasingly stringent requirements on traceability, green production, carbon emission reduction, social responsibility, supply chain transparency and labour standards. These non-tariff barriers are prompting enterprises to comprehensively upgrade both management practices and production technologies.

Economic experts note that businesses seeking to maximise the benefits of the EVFTA can no longer rely solely on tariff preferences. Long-term competitiveness will increasingly depend on product quality, technological innovation and compliance with international standards.

Investments in digital transformation, certified raw material zones, internationally recognised certifications and environmentally sustainable manufacturing are becoming decisive factors in maintaining long-term access to European markets.

The footwear industry is considered one of the sectors benefiting most from the EVFTA. Workers manufacture footwear products at Xu Chang Footwear Company.

One of the key requirements for receiving preferential tariffs under the EVFTA is compliance with the agreement’s rules of origin.

Recently, the Ministry of Industry and Trade issued Circular No. 14/2026/TT-BCT, providing detailed guidance on the implementation of EVFTA rules of origin. A notable new provision is the introduction of an origin accumulation mechanism, allowing certain materials originating in the EU or eligible partner countries to be counted when determining product origin.

The new regulation is expected to provide greater flexibility in supply chain management, particularly for the textile, footwear, electronics and food processing industries.

At the same time, the Department of Industry and Trade has prepared the necessary personnel, digital infrastructure and technical systems to issue Certificates of Origin (C/O) under the decentralised management framework.

The introduction of electronic C/O issuance, integration with the eCoSys platform and transparent digital procedures is expected to help businesses reduce processing time and costs while making more effective use of EVFTA preferences.

According to Hoang Xuan Phu, the department will continue supporting businesses through training programmes, technical consultancy, partner matchmaking and assistance in resolving export-related issues.

As global trade becomes increasingly competitive, the EVFTA continues to provide a major gateway for Phu Tho products to access European markets. As tariff advantages gradually diminish, product quality, technological innovation, green manufacturing and modern corporate governance will become the defining factors determining the long-term position of Phu Tho enterprises within global value chains.

Ngoc Tuan