WHAT HAPPENED
Recent publications in Nation Thailand indicate increasing pressure on Thai exporters from Vietnamese competitors, driven by the advantages of the European Union-Vietnam Free Trade Agreement (EVFTA). This agreement, which came into effect in 2020 and gradually reduces tariffs, grants Vietnamese goods significant preferences for accessing European markets. As a result, products from Vietnam are becoming more price-competitive compared to goods from other Southeast Asian countries that do not have similar agreements with the EU.
This pressure is manifested in changing trade flows and the preferences of European importers, who are increasingly choosing Vietnamese suppliers to minimize import duties. This not only stimulates the growth of Vietnam's exports to the EU but also compels neighboring countries, such as Thailand, to seek new strategies to maintain their market share or reorient themselves to other regions. Current data for 2025-2026 shows a continued strengthening of these trends, confirming the strategic importance of EVFTA for Vietnam's economy and its trading partners.
WHAT THIS MEANS
For Russian exporters and e-commerce companies seeking access to European markets, the situation with EVFTA in Vietnam opens up unique strategic opportunities. Given certain ongoing restrictions and geopolitical factors, Vietnam can become an effective 'window' to Europe. By utilizing Vietnamese production facilities or logistics hubs, Russian companies can gain access to European consumers, bypassing the high tariff barriers faced by goods directly exported from Russia.
The advantages of EVFTA allow Vietnamese manufacturers and affiliated companies to offer goods in the EU at lower prices, increasing their overall competitiveness. Russian companies can consider various cooperation models: from localizing part of production in Vietnam (adhering to rules of origin) to using Vietnamese partners for re-export or distribution of their products. This is especially relevant for high-value-added segments, where reduced customs duties can significantly increase profitability.
In the context of e-commerce, Vietnam can become a central hub for fulfillment and distribution of goods across Europe. Establishing warehousing facilities and partnering with local logistics companies will optimize supply chains, reduce delivery times, and lower operating costs. The experience of Thai exporters facing increased competition highlights the need for rapid adaptation and the search for new ways to maintain and expand market positions. For Russian companies, this means an opportunity to learn from others' experiences, minimizing potential risks and utilizing already proven strategies.
VIETSMART EXPERT COMMENTARY
In the shoes of a Russian entrepreneur interested in the European market, we would view Vietnam not just as an alternative path, but as a full-fledged strategic platform for international business development. The first step is a thorough analysis of product compliance with EVFTA rules of origin. This is critically important, as origin determines the possibility of duty-free import into the EU. It is not enough to simply produce goods in Vietnam; a significant part of the value or production operations must originate in Vietnam.
Next, we would actively seek reliable Vietnamese partners – be they manufacturers, logistics operators, or companies specializing in e-commerce. A local partner with deep market knowledge, regulatory understanding, and established connections can be key to success. It is also important to consider the specifics of the European market: quality requirements, certification, packaging, and marketing. Vietnamese partners can help adapt the product to these requirements, significantly accelerating the market entry process.
CONCLUSIONS AND WHAT TO DO
- Study EVFTA Rules of Origin: Before planning exports through Vietnam, it is essential to thoroughly study the Rules of Origin under EVFTA. This will determine how much production or raw material must be Vietnamese for the product to qualify for duty-free entry into the EU.
- Find Reliable Vietnamese Partners: Establish contacts with local manufacturing companies, logistics operators, and e-commerce platforms. Consider forming joint ventures or entering into long-term contracts for production, assembly, or distribution.
- Product and Packaging Adaptation: Ensure your product complies with all European quality, safety, and environmental standards. It is also important to adapt packaging and labeling to EU requirements and European consumer preferences.
- Develop a Logistics Strategy: Plan optimal logistics routes from Vietnam to Europe. This may include sea, air freight, and the use of European fulfillment centers for accelerated delivery to end consumers.
- Risk Assessment and Legal Support: Conduct a comprehensive assessment of legal, financial, and operational risks. Engage lawyers specializing in international trade law and EVFTA to ensure compliance with all regulatory requirements.
Source: Nation Thailand from August 16, 2026