EVFTA to hasten movement of manufacturers to Vietnam: analysts
Vietnam’s booming economy will see another surge of new investment after signing a free trade agreement with the European Union (EU) that could hasten the exodus of manufacturers from China.
Hanoi (VNA) – Vietnam’s booming economywill see another surge of new investment after signing a free trade agreementwith the European Union (EU) that could hasten the exodus of manufacturers fromChina, according to analysts.
The South China Morning Post on July 3 quotedexperts as saying that Chinese firms looking to gain lower-tariff access to theEU market are likely to be incentivised to open production in Vietnam.
Adam McCarty, chief economist at Hanoi-basedMekong Economics, said the agreement will “speed up, slightly, the already fastmovement of factories from China to Vietnam”.
“The trade war adds a little to what washappening anyway, and this [free trade agreement] adds a little more. It isboth Chinese and foreign firms relocating to Vietnam,” he added.
“From the business strategy point of view,Vietnam is actually a good manufacturing location that people are looking atfor the advantage of the network of the [free trade agreement with the EU],”said Angelia Chew, founder of the Singapore-based consultancy AC TradeAdvisory.
“On top of the trade tension, we have Chineseclients that are looking for manufacturing relocation [to Vietnam] to mitigateincreased duties for goods made in China to the US. It is pretty exciting forcompanies investing into [Vietnam now] as well as existing companies inVietnam, they knew the [free trade agreement] was going to attract moreinvestment.”
Dr Cassey Lee, senior fellow at the ISEAS-YusofIshak Institute in Singapore, a research institution that specialises inSoutheast Asian studies, said the EVFTA would “help Vietnam diversify itsportfolio of inward foreign direct investment”.
The EVFTA and the EU-Vietnam InvestmentProtection Agreement (EVIPA) were signed in Hanoi on June 30. The agreementswill be submitted to the National Assembly of Vietnam and the EuropeanParliament for ratification.-VNA
Vietnam and the European Union (EU) last week signed a landmark free trade deal that will slash tariffs on almost all goods, including wood and timber products. It is expected to give Vietnamese wood exporters better market access and more opportunities to expand their business.
Vietnam has become more attractive to foreign investors than ever before as various freshly-inked new-generation free trade deals, including the EU-Vietnam Free Trade Agreement (EVFTA) and the EU-Vietnam Investment Protection Agreement (EVIPA), are expected to facilitate trade and benefit foreign enterprises.
The freshly-signed EU-Vietnam Free Trade Agreement (EVFTA) will help the Vietnamese steel sector expand export markets in Europe, industry insiders said.
The EU-Vietnam Free Trade Agreement (EVFTA) has a positive impact on Vietnam's real estate market, especially the industrial real estate, said experts from Savills Vietnam.
According to Mastercard data, Vietnam has recorded a remarkable 92% compound annual growth rate (CAGR) in contactless transaction volume from Q4 2022 to Q4 2024.
Tuan expressed his confidence that LH, with its expertise and experience, would swiftly implement the urban area project, contributing to a modern urban landscape for the province.
With its strategic location, abundant workforce, and modern infrastructure, Vietnam holds significant potential to become a leading centre for power and electronics production in the region and the world.
The renewable energy workforce training and development centre, invested by Germany's GEO Group, is expected to be a cornerstone in shaping Binh Dinh as a renewable energy and innovation hub in central Vietnam, meeting the growing demand for skilled technical personnel in offshore wind, solar farms, and green hydrogen projects.
A notable trend is the shift toward satellite regions. With land scarcity and soaring prices in Ho Chi Minh City and Hanoi, investors are eyeing provinces like Hung Yen, Bac Ninh, and Hai Phong, which are benefiting from improved technical infrastructure and transport connectivity.
To further strengthen private-sector innovation, Bac Ninh plans to accelerate administrative reforms, build a digital, service-oriented government, and develop an integrated innovation ecosystem that connects businesses with domestic and international institutions, universities, and experts.
The participation of H&M, one of the world's largest fashion corporations, in Vietnam International Sourcing 2025 in Ho Chi Minh City in early September is considered a special highlight, opening up many cooperation opportunities for Vietnamese businesses in the fashion, textiles and sustainable supply chains.
This latest order builds on a previous agreement signed at the Singapore Airshow last year for 40 engines, bringing the total number of Trent 7000 engines ordered by the airline to 80.
Minister of Industry and Trade Nguyen Hong Dien acknowledged that despite concerted efforts by ministries and local authorities in combating fake and substandard goods, the situation remains highly complicated, attributing the persistent challenges to high profits luring numerous participants, increasingly sophisticated violations, limited resources within enforcement agencies.
The group also placed among the Top 5 energy companies in Southeast Asia and secured the top spot among the largest Vietnamese enterprises featured on the list.
The zone will cover 1,881 ha, comprising functional areas for production, logistics, trade and services, digital technology industry, information technology, and innovation.
Dung underlined several key objectives, including a comprehensive review of the legal framework governing SOEs, and called for updates that reflect international standards and support modern, transparent governance.
While the US market has become more difficult to access due to new tax policies, Australia could play the role of a trade cushion, helping to reduce shocks and maintain export momentum for Vietnam's shrimp industry.
Vietnam Cycle Expo 2025 will coincide with the Vietnam Sport Show 2025, an international exhibition on sports and outdoor entertainment, expected to attract more than 20,000 visitors in the three-day event.
Despite global economic uncertainties, Binh Duong has maintained strong momentum in both exports and industrial production during the first half of 2025.
At the signing ceremony of the EVFTA (Photo: VNA) 
