Spanish market news Q1/2025

1. Overview of the Spanish market

The Spanish economy continued to maintain positive growth momentum in the first quarter of 2025, affirming its position as one of the fastest growing economies in the Eurozone. In early March 2025, the Central Bank of Spain revised its GDP growth forecast for 2025 to 2.7% from the previous forecast of 2.5%. This adjustment was based mainly on the following factors: a strong economic recovery in late 2024, a strong labor market and disposable income leading to a strong recovery in private consumption (up 1.2% quarter-on-quarter) and public spending (up 2.5%). In addition, the recovery of the tourism industry, the stability of the export sector and domestic consumption maintained at a positive level contributed to Spain's economic achievements in the first quarter of 2025.

Inflation in Spain increased by the end of 2024 due to rising prices for services and energy. The average consumer price index (CPI) in 2024 was 2.8%. However, in the first quarter of 2025, although still high, inflation was better controlled and within the European Central Bank (ECB) target range, making Spain's domestic purchasing power and consumption relatively stable.

The evolution of the exchange rate between the Euro and the US dollar - a decisive factor for Spain's international trade, is mainly influenced by two factors: the development of US trade and fiscal policy and the development of conflicts in the world . In the first quarter of 2025, the Euro exchange rate remained relatively stable. This stability has created favorable conditions for Spain's import and export activities, helping businesses to make long-term plans with less volatile international transaction costs, while attracting foreign investment due to the stable monetary environment.

Below is an update of Spain's macroeconomic indicators forecast by the Bank of Spain for 2025 and 2026:

Spain continues to affirm its position as an attractive destination for international investors. According to the 17th Investment Climate Index Report published on February 18, 2025 by the Spanish International Investment and Trade Agency (ICEX), 89% of foreign companies operating in Spain expect to increase or maintain their investments in 2025 despite the complex international context. The number of enterprises expecting to increase or maintain the categories: revenue, investment, employment and exports increased compared to the previous year, by 12%, 3%, 7% and 6% respectively in the respective categories. In particular, in terms of revenue prospects, the proportion of enterprises expecting to maintain or increase their revenue this year will increase to 87% compared to 78% last year. However, investments have not yet shown clear signs of recovery, which could affect sustainable growth in the long term.

A notable policy development is the Spanish government ’s €14.1 billion trade response and restart plan in response to President Trump’s decision to increase tariffs on European products. The plan includes €14.1 billion to mitigate the negative impact of the trade war and “build a shield” to protect the Spanish economy. The plan includes ICO loans and immediate liquidity for affected businesses, industrial modernization and investment, reorientation of production and direct aid for the internationalization of small and medium-sized enterprises (the first €7.72 billion of the Plan was approved in early April 2025).

II. IMPORT AND EXPORT SITUATION BETWEEN SPAIN AND VIETNAM

1/General import and export situation of Spain

The Spanish economy maintains a favorable outlook for the foreign trade sector, although international trade tensions, especially those stemming from US tariff policies, are a risk factor for Spanish exports.

Spain's import and export activities in the first quarter of 2025 maintained a positive trend, although the growth rate slowed down somewhat compared to 2024. Spain's main export items are still focused on the automotive, machinery and equipment, pharmaceuticals, food (especially olive oil and wine) and textile industries.

Spain's main trading partners continue to be EU countries, especially France, Germany and Italy, which account for around 60% of total exports. Outside the EU, the United States, the United Kingdom, China and North African countries are also important export markets for Spain.

According to the Spanish Government report published on 17 March 2025, Spanish goods exports reached 29.78 trillion euros in January 2025. After adjusting for seasonal and calendar factors, exports increased by 1.8% compared to January 2024, indicating a positive growth trend. Total Spanish exports in the first quarter of 2025 are estimated at 95.112 trillion euros (29.78 trillion euros in January and 32.66 trillion euros each in February and March (forecast). These estimates reflect the possibility of moderate growth in Spanish exports.

Spain's total exports in the first quarter of 2025 are estimated at €95.11 billion, with January reaching €29.78 billion and February and March each at €32.66 billion (forecast). These estimates reflect the resilience and moderate growth of exports in the recent economic climate. Spain's main export sectors include: Automobiles and automotive components (17.6%); Machinery and mechanical appliances (11.8%); Pharmaceuticals and medical products (8.9%); Food and beverages (17.2%); Chemicals (8.7%); Textiles and clothing (5.4%); Electrical and electronic equipment (4.6%); Agricultural products (3.9%); Plastics and rubber (2.8%); Iron, steel and fabricated metal products (3.1%) (Data 2024). Some specific characteristics of Spain's export activities include: Being the leading automobile exporter in Europe (after Germany); The agricultural and food industry plays an important role in total export turnover; Fashion brands such as Zara (Inditex), Mango, Desigual contribute greatly to the textile industry.

Total import value (NK) in the first quarter of 2025 is estimated at 105.26 billion euros, with specific values as follows: January reached 35.97 billion euros (actual), February and March each about 34,644.85 million euros (expected). Forecasts from the International Monetary Fund (IMF) show that Spain's import volume of goods and services will increase by 2.6% in 2025, supporting a slight growth trend in the first quarter. According to 2024 data, Spain's leading import partners include: China (50 billion USD); Germany (43 billion USD); France (41 billion USD); United States (33 billion USD); Italy (27 billion USD). Spain's main import items include: Mineral fuels (93 billion USD); Automobiles and spare parts (38 billion USD); Electrical machinery (36 billion USD); Nuclear reactors (35 billion USD); Pharmaceutical products ($23).

2/Bilateral trade relations between Spain and Vietnam

Trade relations between Spain and Vietnam have developed steadily. According to statistics from Vietnam Customs in 2024, the import-export turnover between Vietnam and Spain reached over 4.71 billion USD, up 19.5%, of which exports reached over 4 billion USD, up 21.0%, imports over 0.71 billion USD, up 14.2%, and trade surplus continued to be maintained at a high level of 3.29 billion USD. This continues to be a positive import-export growth rate. Vietnam has always maintained its position as one of the countries with the largest market share and export turnover in Asia to Spain, second only to partners considered strategic to you such as China and India, above all other Asian countries and other ASEAN countries. This figure makes Spain the fifth largest trading partner of Vietnam in the EU. For its part, Vietnam has become Spain's main trading partner in ASEAN.

Trade relations between Spain and Vietnam in the first quarter of 2025 continued to develop positively on the basis of the EU-Vietnam Free Trade Agreement (EVFTA). During Prime Minister Pedro Sánchez's working visit to Vietnam from April 8 to 10, the two countries discussed many specific solutions to enhance economic, trade and investment cooperation in each other's potential areas.

Vietnam's main exports to Spain include phones and components, machinery and equipment, textiles, footwear, seafood, coffee and furniture. In return, Vietnam imports mainly machinery and equipment, pharmaceuticals, chemicals, food and meat products from Spain.

Vietnam - Singapore bilateral import and export:

During the above-mentioned visit to Vietnam, Prime Minister Pedro Sánchez expressed his wish that Spain would become an active partner in the process of national modernization and Vietnam's goal of becoming a high-income country by 2050. Despite the positive development in trade relations, economic, trade and investment cooperation between the two countries is still not commensurate with the potential and strengths of the two countries, specifically: the import-export turnover between Vietnam and Spain accounts for only 0.7% of Spain's total import-export turnover and 0.6% of Vietnam's total import-export turnover. Spain's investment in Vietnam is still modest, ranking 46th out of 147 countries and territories investing in Vietnam. Therefore, both countries need to work together to turn potential into reality, based on trust, respect and the search for common interests, and this cooperation is also within the broader context of the relationship between the EU and ASEAN.

Overall, the two economies have many complementary advantages. Spanish companies are strong in sectors such as industry, energy and transport infrastructure - especially urban railways - where they can contribute significantly to Vietnam's strategic projects. Diversifying export markets and seeking new trading partners is a fundamental strategy for Spain in a global context characterized by trade and geopolitical tensions. Vietnam, with its dynamic economy and strategic location in Southeast Asia, is an attractive option for Spanish companies.

Vietnam's export prospects to the Spanish market in the coming time will face more difficulties and challenges than before due to factors including:

The context of increasing market competition pressure as the EU and Spain prioritize the ratification of the FTA between the EU with Mexico and Mercosur countries this year; have resumed negotiations on FTAs with other ASEAN countries such as Thailand, Indonesia and the Philippines. The FTAs of the EU-New Zealand, the EU-Central America Region (including Panama, Guatemala, Costa Rica, El Salvador, Honduras, and Nicaragua) and the EU with Chile and Kenya will all soon come into effect.
The Trump Administration's additional tariffs on imported goods from the EU and Spain will limit the flow of re-exported goods from the EU and reduce opportunities to import goods as raw materials for production for export to the US market.
The main competitors, especially for seafood, vegetables, coffee, wood and wood products, come from Latin America and North Africa - where they have superior advantages in terms of geography, cost and time of transporting goods and have special traditional relationships with large Spanish-speaking communities.

Based on current economic indicators and trade trends, it can be seen that trade relations between Spain and Vietnam will continue to grow positively in the following quarters of 2025.

III. UPDATE LEGAL REGULATIONS

In 3M/2025, Spain has introduced a number of notable policy regulations that impact international trade as follows:

Order APA/229/2025 of 10 March establishes specific protection measures related to animal health - bluetongue disease.
Decree 140/2025 dated February 25, regulating the Inter-Ministerial Committee on Cooperation for Sustainable Development and Global Solidarity.
Decree 91/2025 of February 11 establishes a mechanism for energy management, climate change and air quality.
Decree 70/2025 of 4 February amends Decree 1528/2012 establishing rules applicable to animal by-products and products of animal origin not intended for human consumption and Decree 476/2014 regulating the registration authority for the transport of these products.
Decree 88/2025 dated February 11 amends Decree 814/2018 implementing regulations on the classification of beef and lamb as well as the recording and notification of market prices of certain types of meat and live animals.
Decree 91/2025 dated February 11 establishes a management mechanism for the energy, climate change and air quality sectors.

IV. TRADE AND INVESTMENT PROMOTION EVENTS

The 23rd edition of Spain's largest international investment and business event held in Madrid (IMEX-Madrid 2025) last February brought together more than 2,000 experts, 70 exhibitors and representatives from 68 countries, including Vietnam. IMEX-Madrid 2025 is an important meeting place for Spanish companies interested in expanding their operations internationally, including opportunities in Asia and Vietnam. The Vietnam Trade Office in Spain participated in organizing a booth to introduce the production and export potential of Vietnamese enterprises and directly connect businesses with local associations and enterprises.
The Vietnam - Spain High-Level Business Forum held in Ho Chi Minh City on April 10 within the framework of the official working visit of Prime Minister Pedro Sánchez attracted the participation of more than 500 Vietnamese enterprises and many leading Spanish corporations including: Adif, Escribano, Palladium, Renfe, Talgo, Antolín, Recover, Indra, Premo, Rolser, Técnicas Reunidas, EDPr, Acciona, Airbus, Caf, Meliá and Porcelanosa

Event Name	Location	Estimated time	Contact information (website)
-Advanced Industrial Factory Fair	Barcelona Exhibition Center (Fira)	April 8-10, 2025	Advanced Factories - Industry 4.0 Congress \| Barcelona
-High-end food and beverage fair (Salon Gourmets)	Madrid Exhibition Center (ifema)	April 7-10, 2025	Gastronomy and tapas fairs \| IFEMA MADRID
-Transportation fair	Madrid Exhibition Center (ifema)	April 23-26, 2025	Motor, cars and transport fairs \| IFEMA MADRID
-Construction and architecture exhibition	Madrid Exhibition Center (ifema)	April 23-25, 2025	Construction and Architecture Fairs \| IFEMA MADRID
-Furniture and lighting fair	Madrid Exhibition Center (ifema)	April 21-25, 2025	Home, Furniture and Lighting Fairs \| IFEMA MADRID
-Global Seafood Expo Barcelona 2025	Barcelona Exhibition Center (Fira)	6-8/5/2025	Seafood Expo Global
-Automotive industry fair	Barcelona Exhibition Center (Fira)	10-18/5/2025	Automobile Barcelona 2025 \| Automobile Barcelona
- Nutritional food fair (Vitafood)	Barcelona Exhibition Center (Fira)	20-22/5/2025	Vitafoods Europe 2025 \| The World's Nutraceutical Trade Show
-Construction solutions fair	Barcelona Exhibition Center (Fira)	20-22/5/2025	Construmat \| Building Sustainability
-IMEX Valencia 2025 International Investment and Business Event	Valencia City	21-22/5/2025	IMEX Impulso Exterior \| International Business Fair
-Industrial machinery and equipment fair	Madrid Exhibition Center (ifema)	June 18-19, 2025	Industry LIVE 2025 \| IFEMA MADRID
-Logistics, supply chain and transport fair (SIL Barcelona)	Barcelona Exhibition Center (Fira)	June 18-20, 2025	SIL BARCELONA - Barcelona International Logistics and Material Handling Exhibition
-European Brand Fair	Barcelona Exhibition Center (Fira)	16-19/9/2025	Welcome to Labelexpo Europe 2025
-Global Fruit and Vegetable Fair (Fruit Attraction 2025)	Madrid Exhibition Center (ifema)	9/30-10/2/2025	FRUIT ATTRACTION 2025 \| Fruit and Vegetable Sector Fair
-Logistics and automation fair	Madrid Exhibition Center (ifema)	October 15-16, 2025	Logistics & Automation 2024 \| IFEMA MADRID
-European Container Transport Fair	Barcelona Exhibition Center (Fira)	21-23/10/2025	Intermodal Europe - The Leading Container Shipping Event
-Automobile manufacturing fair	Madrid Exhibition Center (ifema)	October 21-22, 2025	Automotive Manufacturing Meetings Madrid 2025 \| IFEMA MADRID
-Barcelona Premium Food and Beverage Fair	Barcelona Exhibition Center (Fira)	3-5/11/2025	Gastronomic Forum Barcelona \| The biggest gastronomic event of the year
-Green Economy Forum	Barcelona Exhibition Center (Fira)	4-6/11/2025	Tomorrow.Blue Economy World Congress \| TBEWC 4 – 6 NOV 2025
-World Smart City Forum	Barcelona Exhibition Center (Fira)	4-6/11/2025	Smart City Expo World Congress \| SCEWC 4 - 6 NOV 2025
- SIMO Education Fair 2025	Madrid Exhibition Center (ifema)	19-21/11/2025	SIMO EDUCATION 2024 \| International Technology and Education Exhibition
-Mechanical and refrigeration fair	Madrid Exhibition Center (ifema)	18-20/11/2025	C&R 2025 \| Air conditioning, ventilation and heating fair
-Electrical and Electronic Industrial Solutions Fair	Madrid Exhibition Center (ifema)	18-20/11/2025	MATELEC 2025 \| Electrical and Electronic Industry Solutions Fair.