List of Vietnam’s Free Trade Agreements 2024

Vietnam’s network of Free Trade Agreements (FTAs) has become a cornerstone of its economic strategy, enabling the country to integrate more deeply into the global economy and expand its trade partnerships. Over the past few decades, Vietnam has signed numerous bilateral and multilateral FTAs, positioning itself as a key player in regional and international trade.

Vietnam’s FTAs not only boost exports by providing preferential access to key markets but also attract foreign direct investment (FDI) by offering businesses a stable and predictable trade environment. These agreements support Vietnam’s economic diversification and development goals, fostering growth in sectors such as manufacturing, agriculture, and high-tech industries. As Vietnam continues to negotiate and implement new FTAs, its role in global trade is set to expand, further enhancing its economic resilience and competitiveness.

Which countries does Vietnam have free trade agreements with?

Vietnam has free trade agreements with countries spanning from the Americas to Europe and Asia, covering a wide geographical range. These agreements include partnerships with developed economies such as the European Union, Japan, and Canada, as well as emerging markets like India and Russia. 

Vietnam’s free trade agreements, October 2024

Under negotiation

List of Vietnam’s free trade agreements

AFTA

The ASEAN Free Trade Area (AFTA) is a regional trade agreement among the ten ASEAN member countries—Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam. Established in 1992, AFTA aims to create a single market and production base by reducing tariffs on most goods to 0-5 percent. This initiative promotes intra-regional trade by minimising barriers and standardising customs procedures, making it easier and more cost-effective for businesses to operate across ASEAN borders.

ACFTA

The ASEAN-China Free Trade Area (ACFTA) enhances trade relations between ASEAN and China. It eliminates tariffs on many products and encourages investment and economic cooperation, promoting growth in sectors like manufacturing and agriculture.

AKFTA

The ASEAN-Korea Free Trade Area (AKFTA) focuses on reducing barriers to trade in goods, services, and investment between ASEAN countries and South Korea. It aims to boost economic ties and mutual market access.

AJCEP

The ASEAN-Japan Comprehensive Economic Partnership (AJCEP) is a broad agreement covering trade in goods and services, investment, and economic cooperation. It aims to strengthen economic integration between Japan and ASEAN countries​.

VJEPA

The Vietnam-Japan Economic Partnership Agreement (VJEPA) aims to reduce tariffs and promote cooperation in various sectors, including goods, services, and investment, enhancing bilateral trade and investment relations between Vietnam and Japan.

AIFTA

The ASEAN-India Free Trade Area (AIFTA) promotes trade and economic cooperation between ASEAN countries and India by reducing tariffs on a wide range of goods and services, fostering a more dynamic trade environment​.

AANZFTA

The ASEAN-Australia-New Zealand Free Trade Area (AANZFTA) reduces tariffs and barriers to trade in goods, services, and investment between ASEAN, Australia, and New Zealand, promoting deeper regional economic integration​.

VCFTA

The Vietnam-Chile Free Trade Agreement (VCFTA) eliminates tariffs on most products, fostering increased trade and economic cooperation between Vietnam and Chile, particularly in the agricultural and industrial sectors.

VKFTA

The Vietnam-Korea Free Trade Agreement (VKFTA) focuses on reducing tariffs and promoting trade in key sectors like electronics, textiles, and machinery, enhancing bilateral economic ties between Vietnam and South Korea​.

VN-EAEU FTA

The Vietnam-Eurasian Economic Union FTA (VN-EAEU FTA) facilitates trade between Vietnam and EAEU countries (Russia, Belarus, Kazakhstan, Armenia, Kyrgyzstan) by reducing tariffs and fostering economic cooperation in sectors like agriculture and machinery​.

CPTPP

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is a multilateral free trade agreement. It was formed as a successor to the Trans-Pacific Partnership (TPP) after the United States withdrew in 2017. The CPTPP is one of the largest trade agreements in the world, covering around 13.4 percent of the global economy and nearly 500 million people.

The agreement includes 11 countries: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam. Although, the UK has also joined, with the agreement set to come into force for the country at the end of 2024. Furthermore, Indonesia took steps to officially begin the accession process in September of 2024.

In addition to tariff reductions, the CPTPP includes comprehensive provisions for services and investment, allowing for the easier movement of business personnel and capital between member countries. It also addresses modern trade issues such as intellectual property rights, digital trade, and state-owned enterprises.

AHKFTA

The ASEAN-Hong Kong Free Trade Agreement (AHKFTA) promotes trade and investment between ASEAN countries and Hong Kong. It includes commitments on customs procedures, trade facilitation, and market access, aiming to enhance regional economic integration​.

EVFTA

The EU-Vietnam Free Trade Agreement (EVFTA) is a comprehensive trade deal between the European Union and Vietnam that came into effect on August 1, 2020. It significantly enhances market access by eliminating or reducing tariffs on almost all goods traded between the two parties over a transition period of up to ten years. Specifically, the EVFTA removes tariffs on 99 percent of goods exported by both sides, benefiting a wide range of sectors including textiles, machinery, and pharmaceuticals.

The EVFTA also promotes broader economic cooperation beyond trade in goods. It includes commitments on intellectual property rights, sustainable development, and investment protection. The agreement mandates that both parties adhere to international labour standards and environmental protection, ensuring that economic growth does not come at the expense of social and environmental standards. 

UKVFTA

The Vietnam-UK Free Trade Agreement (UKVFTA) inherits commitments from the EVFTA and focuses on eliminating tariffs on most goods traded between Vietnam and the UK, fostering stronger bilateral economic relations post-Brexit​.

RCEP

The Regional Comprehensive Economic Partnership (RCEP) includes ASEAN countries and major trading partners like China, Japan, and South Korea. It reduces tariffs, improves market access, and fosters economic integration in the Asia-Pacific region​.

VIFTA

The Vietnam-Israel Free Trade Agreement (VIFTA) promotes trade and investment between Vietnam and Israel by eliminating tariffs on many products, enhancing cooperation in technology and agriculture​.

Vietnam-EFTA FTA

Currently under negotiation, the Vietnam-EFTA FTA aims to reduce trade barriers between Vietnam and EFTA members (Switzerland, Norway, Iceland, and Liechtenstein), focusing on goods, services, and investment.

ASEAN-Canada FTA

The ASEAN-Canada FTA, in negotiation, seeks to enhance trade and investment between Canada and ASEAN countries by reducing tariffs and fostering cooperation in various sectors, including technology and services​.

Vietnam-UAE CEPA

In October, 2024, Vietnam and the United Arab Emirates and Vietnam signed a comprehensive economic partnership agreement or CEPA. The agreement, when fully implemented, will see the UAE reduce tariffs on 99 percent of Vietnam’s exports to the country with Vietnam removing 98.5 percent of tariffs on goods arriving from the UAE.

What’s next?

Vietnam has signed multiple Free Trade Agreements with various countries and regions. These agreements aim to reduce or eliminate tariffs, enhance market access, and promote economic cooperation across diverse sectors such as textiles, machinery, and agriculture. This is in line with a broader strategy of export-led economic development.

In the near future, this approach looks set to continue and with at least three free trade agreements under negotiation, it’s likely this list will become longer. With this in mind, foreign firms can keep track of developments in Vietnam’s trade policy by subscribing to the-shiv.