Core Insights - Vietnam has signed and negotiated 20 free trade agreements (FTAs), with 17 currently implemented or in progress with major global economies, covering 90% of global GDP [1][2] - The EVFTA has significantly boosted bilateral trade between Vietnam and the EU, increasing from $48.9 billion to nearly $78 billion over five years, with an average annual growth rate of 10.1% [1] - The EU market is shifting towards green and sustainable consumption, requiring compliance with labor and environmental standards, which poses competitive pressure on Vietnamese goods [2] Group 1 - Vietnam is one of the developing countries with the most FTAs, including CPTPP, RCEP, and EVFTA [1] - The Ministry of Industry and Trade is building an FTA ecosystem to support enterprises in maximizing FTA benefits and enhancing competitiveness [1] - The average annual growth rate of exports to the EU market is 11.7%, while imports have grown at 6.1% [1] Group 2 - Experts highlight the need for Vietnamese enterprises to adapt to new market standards and enhance competitiveness to maintain and expand their market share in the EU [2] - The EU is implementing the European Green Deal, aiming for a modern, resource-efficient economy and carbon neutrality by 2050 [2] - To effectively utilize FTA benefits, Vietnamese companies must prepare to meet increasing market standards and engage deeply in global value chains [2]

Core Insights - Vietnam's economy is showing strong growth momentum, with a GDP growth of 7.96% in Q2 2025 and 7.52% in the first half of 2025, marking the highest level for the same period from 2011 to 2025 [1] - The government is implementing policies to achieve an annual growth target of 8%, with analysts predicting a growth rate of 8.42% in the second half of 2025 [1] Economic Drivers - Vietnam is demonstrating resilience and diversified growth dynamics amid a reshaping global trade and financial landscape [3] - The country is capitalizing on its "demographic dividend," with a population of approximately 101.6 million, where over 67% are of working age [3] - The labor market is robust, with a labor participation rate of 53 million and an unemployment rate of 2.22% for the working-age population [3] - Average monthly income has risen to approximately $325, indicating positive trends in employment and income growth [3] - Exports are thriving, with June 2025 export figures reaching approximately $21.98 billion, a year-on-year increase of 14.4% [3] - Vietnam continues to attract foreign investment, particularly in manufacturing, bolstered by a new trade agreement with the U.S. that reduces tariffs on most Vietnamese exports to 20% [3] Risks and Challenges - Despite strong economic performance, Vietnam faces structural challenges, including high external dependency and vulnerability to global economic fluctuations [5][6] - The country is particularly reliant on the U.S. market, with exports to the U.S. reaching $142 billion, accounting for about 29% of total exports and approximately 30% of GDP [8] - The recent trade agreement, while beneficial, still poses risks due to potential uncertainties in execution and compliance with "origin" rules [8] - The World Bank forecasts a slowdown in Vietnam's export growth from 14% in 2024 to 12.1% in 2025, influenced by weakened demand from China and the U.S. [8] - Vietnam is at a critical juncture for industrial upgrading, needing to balance openness with domestic industry autonomy to maintain sustainable growth [9]