Vietnamese businesses urged to sharpen compliance to tap EVFTA opportunities

On September 18, 2025, the Ho Chi Minh City Investment and Trade Promotion Center (ITPC), in collaboration with the Representative Office of the German state of Rheinland-Pfalz in Vietnam and TradeComply, held a seminar on “Compliance withEU-Vietnam Free Trade Agreement (EVFTA) trade regulations to optimize costs and maximize tariff preferences.” The event aimed to update businesses on new EU trade requirements and share best practices in implementing the EVFTA.

The EVFTA, considered a new-generation free trade agreement, is expected to provide a strong boost for key sectors including textiles, footwear, furniture, processed farm produce and seafood, with nearly 99% of tariff lines eliminated within seven years.

Nguyen Thi Phuong, CEO of TradeComply, stressed that the EVFTA would only become a “golden lever” if businesses strictly followed its rules. Even minor errors such as misclassifying HS codes, lacking valid EUR.1 certificates of origin, or failing to meet the minimum 40% regional value content could result in losing all tariff benefits. For instance, tariff cuts on shirts exported to Germany from 12% to 0% could save nearly USD 1 million per million units only if compliance is met.

Businesses also face new EU regulations, including the Carbon Border Adjustment Mechanism (CBAM) starting 2026 on steel, cement, aluminum and fertilizer, and the EU Deforestation Regulation (EUDR) from mid-2025, requiring proof of sustainable origins for products like coffee, rubber and timber.

Speakers highlighted common compliance pitfalls for SMEs, updates on upcoming trade rules, and digital solutions to manage import-export processes. Digitalized tools were emphasized as crucial to cutting costs, mitigating risks and enhancing competitiveness in global supply chains.

Rheinland-Pfalz: A strategic EU gateway for Vietnamese exports

Ms. Phan Thuy My, Chief Representative of Rheinland-Pfalz in Vietnam, introduced the state as Europe’s “heart,” strategically located 30 km from Frankfurt airport, with extensive logistics including 605 km of inland waterways and 141 inland ports. In 2022, Rheinland-Pfalz recorded a GDP of EUR 171.7 billion, with over 99% SMEs and an export ratio of 58%.

The state hosts leading industries such as automotive, medical technology, chemicals, wine, as well as pioneering sectors in AI, digital transformation and environmental technology. It is also home to four universities, 23 research institutes, and innovation funds offering up to EUR 2 million for small tech firms.

From January 2025, revised EU origin rules will allow more flexibility, while import procedures are moving toward full digitalization through platforms like ELAN and Safety Declarations. In 2026, Rheinland-Pfalz plans trade promotion events including wine and green technology exhibitions, executive training programs for young Vietnamese professionals, and cross-border supply chain networking.

According to ITPC, the seminar formed part of ongoing efforts to support businesses in global integration. Ho Chi Minh City enterprises were urged to stay proactive, update EVFTA requirements, avoid mistakes that forfeit tariff preferences, and embrace technology for efficient operations and compliance.