Vietnam has rapidly transformed into a global trade powerhouse, thanks to its extensive free trade agreement (FTA) architecture and a broad network of bilateral and multilateral free trade agreements (FTAs). These pacts lower or eliminate tariffs, secure preferential market access, and strengthen legal protections for investors, creating a predictable environment for cross-border commerce and capital.
This blog examines each major free trade agreement (FTA) Vietnam has signed, highlighting core provisions—tariff schedules, rules of origin, services and investment chapters, intellectual property, and dispute settlement—and explains how they translate into cost savings, market expansion, and stronger competitive positioning for foreign enterprises operating in or trading with Vietnam.
Check Eligibility under Each Free Trade Agreement – FTA? Contact The Nest Asia’s Experts
Vietnam’s Free Trade Agreement (FTA) Landscape
As of 2025, Vietnam has signed and ratified over 17 FTAs, covering more than 60 partner countries across Asia, Europe, and the Americas. Major agreements include:
- Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)
- EU–Vietnam Free Trade Agreement (EVFTA)
- Regional Comprehensive Economic Partnership (RCEP)
- UK–Vietnam Free Trade Agreement (UKVFTA)
- Vietnam–Korea Free Trade Agreement (VKFTA)
- Vietnam–Japan Economic Partnership Agreement (VJEPA)
These FTAs encompass tariff elimination, services liberalization, investment protection, intellectual property rights (IPR), and sustainable trade commitments.
Preferential Market Access
Tariff Reductions and Eliminations
Under the EVFTA, over 99% of tariffs on goods traded between Vietnam and the EU are set to be phased out within seven years. Similarly, CPTPP members benefit from bilateral progressive tariff cuts of up to 100% on agricultural, seafood, textiles, and electronics products. In a more regional context, the RCEP FTA between Asia-Pacific countries delivers immediate tariff elimination on more than 65% of tariff lines, increasing to over 92% in the medium term. Foreign manufacturers and exporters can source Vietnamese inputs and re-export finished goods with minimal duty costs, enhancing global supply chain competitiveness.
Rules of Origin Simplification
Vietnam’s FTAs adopt cumulative Rules of Origin (ROO), allowing inputs from any Free Trade Agreement (FTA) partner to qualify for preferential treatment. For instance, a foreign electronics firm can source components from Japan and South Korea under RCEP and still enjoy zero tariffs when exporting assembled products from Vietnam to Australia or ASEAN markets.
Read Related: Investing in Vietnam: Why It’s Emerging as a SEA Investment Hotspot in 2025?
Services Market Liberalization
Many FTAs require Vietnam to open key service sectors to foreign participation, namely finance, telecommunications, logistics, and professional services. Under CPTPP commitments, foreign equity caps in insurance and banking have been gradually relaxed. The EVFTA mandates liberalization of business services, enabling EU-based consultancies, architect firms, and engineering companies to establish wholly-owned branches in Vietnam. Foreign service providers gain expanded market entry options, enhanced regulatory predictability, and increased cross-border operational scope.
Investment Protections, Intellectual Property Rights (IPR) and Dispute Resolution
Vietnam’s FTAs typically include Investment Chapters that guarantee national treatment and Most-Favored-Nation (MFN) treatment for foreign investors. Provisions on fair and equitable treatment (FET), protection against expropriation, and free repatriation of profits enhance investment security. Investor–State Dispute Settlement (ISDS) mechanisms provide legal recourse through international arbitration for treaty breaches.
Furthermore, under the EVFTA and CPTPP, Vietnam has committed to strengthening IPR enforcement, extending patent and trademark protection, and enhancing border measures against counterfeit goods. Harmonization with the WTO’s TRIPS-plus standards raises Vietnam’s IP regime to international norms, benefiting technology, pharmaceutical, and creative industries.
Multinational corporations gain confidence in safeguarding investments, knowing that bilateral protections supersede potential shifts in domestic policy. Foreign businesses can also safeguard patents, trademarks, and trade secrets more effectively, mitigating infringement risks and fostering technology transfer.
Sustainable Development and Labor Protections
Many of Vietnam’s FTAs incorporate sustainable development chapters requiring environmental protection and labor standards. The EVFTA’s commitment to the Paris Agreement and CPTPP’s labor provisions ensure Vietnam aligns domestic laws with international best practices. Foreign investors benefit from a stable regulatory environment and enhanced corporate social responsibility (CSR) frameworks, improving brand reputation and stakeholder relations.
Practical Steps for Leveraging FTAs
- Understand FTA Provisions: Conduct a comprehensive review of tariff schedules, ROO, and service commitments relevant to your industry.
- Verify Origin Compliance: Implement robust supply chain traceability systems to ensure inputs meet cumulative origin requirements.
- Engage Local Counsel: Partner with local legal and customs experts to navigate documentation, origin certification, and regulatory filings.
- Optimize Supply Chains: Reconfigure procurement and logistics networks to utilize Vietnam-based production facilities and maximize tariff benefits.
Monitor Regulatory Updates: Stay informed on FTA implementation guidelines, circulars, and Vietnam’s schedule of tariff phase-outs.
Start Your Tariff Reduction Plan under the Right Free Trade Agreement – FTA Now!
About Us
The Nest Asia is a one-stop resource offering comprehensive information, practical relocation advice, cultural insights, valuable connections, and trusted services to help expatriates living in Vietnam navigate the transition, overcome challenges, and build a fulfilling life abroad. Starting your journey in a new country can often feel overwhelming. The Nest Asia is your trusted partner – we’re here to simplify that process and ultimately make Vietnam feel like home for you and your loved ones.
Schedule a Meeting
Disclaimer: The Nest Asia is not an authorized provider of official government or non-government services. The information provided is intended for general guidance only. While we strive to offer accurate and timely information, we make no representations or warranties regarding its completeness or accuracy.
