Phu Tho Proactively Implements EVFTA: A new opportunity for sustainable development

More than five years after the Vietnam-European Union Free Trade Agreement (EVFTA) officially came into effect, Phu Tho province is gradually and effectively exploiting the advantages the agreement brings, expanding export markets, promoting economic growth, and progressively realizing the goal of sustainable development. The EU’s elimination of approximately 70% of tariffs on Vietnamese goods immediately upon the agreement’s entry into force has opened up significant opportunities for the province’s key industries, such as tea, wood, electronic components, textiles, and processed agricultural products, to access a market of over 450 million people with high quality standards.

Leaders of the Department of Industry and Trade visit COSMOS Co., Ltd.

In Phu Tho—a locality characterized by rapid industrialization and growing production capacity—import-export activities in the first 10 months of 2025 continued to record impressive results. Export turnover reached 29.684 billion USD, while import turnover hit 30.642 billion USD. With a total trade volume exceeding 60 billion USD in just 10 months, Phu Tho is increasingly asserting its vital role in the national supply chain.

Since the EVFTA came into effect in 2020, the provinces of Vinh Phuc, Hoa Binh, and Phu Tho (formerly) have proactively issued implementation plans, intensified propaganda, and raised awareness among businesses about rules of origin, technical standards, and EU market requirements. Following the province merger on July 1, 2025, Phu Tho continues to strengthen its International Economic Integration Committee and its supporting team, implementing comprehensive solutions ranging from policy mechanisms and human resource training to trade promotion and investment attraction.

According to Mr. Hoang Xuan Phu, Deputy Director of the Phu Tho Department of Industry and Trade, the EVFTA serves as a vital engine for the province’s economic growth. "The agreement not only opens a vast and stable market but also attracts high-quality investment flows from Europe, supporting technological upgrades, production expansion, and job creation. Furthermore, it stabilizes supply chains, allowing enterprises to access modern raw materials, machinery, and equipment from the EU while fostering a “green transition” to meet international production standards."

The tea industry is a prime example of capitalizing on EVFTA opportunities. Hoai Trung Tea Co., Ltd. (Chi Tien Commune) currently produces about 1,000 tons of finished tea annually. Alongside traditional black tea, the company has invested in green tea production lines, achieving 5-star National OCOP standards for export to European markets. Ms. Bui Thi Mao, the company’s Director, emphasized that the firm focuses on sustainable raw material zones, organic cultivation, and strict traceability to meet high-quality standards.

Phu Tho’s wood industry is also strengthening its international standing. With over 123,000 hectares of planted forests and about 200 wood-processing enterprises and cooperatives, the province has become a major wood production hub in the Northern Midland and Mountainous region. Products ranging from wood chips and veneers to high-value-added refined goods are exported to the US, Japan, South Korea, China, and the EU.

Supporting industries are providing the foundation for this integration. The province has over 400 supporting industry enterprises, with more than 70 firms integrated into the global supply chains of major corporations such as Honda, Toyota, and Samsung.

In agriculture, developing OCOP products and granting Production Unit Codes (PUCs) are key strategies. To date, the province has issued over 660 PUCs for products like pomelos, oranges, bananas, and tea, including 109 codes specifically for exports to the EU, South Korea, and China.

FDI enterprises in Phu Tho are also significantly benefiting from the agreement. Mr. Do Duc Thanh, Director of COSMOS Co., Ltd., noted that although their primary clients are in the US, many deliveries are destined for the EU. “Since US clients often operate across both the Americas and Europe, the EVFTA’s tariff preferences give them the confidence to increase order volumes in Vietnam,” he explained.

To effectively utilize the EVFTA, Mr. Hoang Xuan Phu advised that businesses must master the Rules of Origin—a prerequisite for tariff preferences—and proactively update themselves on technical standards and “green” requirements. The Department of Industry and Trade will continue to accompany businesses through training, consultancy, and partnership matchmaking to resolve export-related challenges.

In conclusion, the EVFTA is becoming a “grand gateway” for Phu Tho’s goods to reach the global stage. With proactive governance and an innovative corporate spirit, Phu Tho is transforming into a modern, green, and sustainably integrated economy in this new era of development.

Tran Minh Thuat