Phu Tho proactively implements EVFTA - a new opportunity for sustainable development.

More than five years after the Vietnam-European Union Free Trade Agreement (EVFTA) officially came into effect, Phu Tho province is gradually and effectively exploiting the advantages the agreement brings, expanding export markets, promoting economic growth, and progressively realizing the goal of sustainable development. The EU's elimination of approximately 70% of tariffs on Vietnamese goods immediately upon the agreement's entry into force has opened up significant opportunities for the province's key industries, such as tea, wood, electronic components, textiles, and processed agricultural products, to access a market of over 450 million people with high quality standards.

The EVFTA is a new-generation free trade agreement between Vietnam and the 27 member states of the European Union – a leading economic region with an average income of over US$40,000 per person per year. According to the roadmap, the remaining tariffs will continue to be significantly reduced between 2027 and 2030. Beyond tariff benefits, the EVFTA also promotes institutional reforms, improves labor standards, environmental standards, and product quality, thereby creating a foundation for sustainable development and deeper integration.

Leaders of the Department of Industry and Trade visit COSMOS Co., Ltd.

Amidst a volatile global economy marked by the Russia-Ukraine conflict, the increasing trend of trade protectionism, and supply chain disruptions, the EVFTA continues to affirm its crucial role in the recovery and growth of the Vietnamese economy. According to the report for the first 10 months of 2025, the total import and export turnover of the country reached approximately US$762.44 billion, an increase of over 17% compared to the same period last year; of which exports reached US$391 billion, imports reached US$371.44 billion, and the trade balance continued to show a surplus of nearly US$19.6 billion. These figures demonstrate that exports remain a vital growth driver for the economy in the face of numerous intertwined challenges.

In particular, the EVFTA has helped Vietnam maintain its position in the EU market – a large, stable, and highly predictable market. Beyond providing tariff advantages, the EVFTA has also instilled confidence in European investors, encouraging Vietnamese businesses to improve product quality and meet the increasingly stringent green and sustainable standards of the EU.

In Phu Tho – a locality with a rapid pace of industrialization and increasingly enhanced production capacity – import and export activities in the first 10 months of 2025 continued to record impressive results. Export turnover reached US$29.684 billion, and import turnover reached US$30.642 billion. With a trade volume exceeding US$60 billion in just 10 months, Phu Tho is increasingly affirming its important role in the national supply chain.

Since the EVFTA came into effect in 2020, the provinces of Vinh Phuc, Hoa Binh, and Phu Tho (formerly) have proactively issued implementation plans, intensified propaganda, and raised awareness among businesses about rules of origin, technical standards, and EU market requirements. Following the province merger on July 1, 2025, Phu Tho continues to strengthen its International Economic Integration Committee and its supporting team, implementing comprehensive solutions ranging from policy mechanisms and human resource training to trade promotion and investment attraction.

According to Mr. Hoang Xuan Phu, Deputy Director of the Department of Industry and Trade of Phu Tho province, the EVFTA has been playing a crucial role in the province's economic growth. The agreement not only opens up a large and stable market with over 450 million people, but also attracts high-quality investment capital from Europe, supporting technological upgrades, expanding production, and creating more jobs. In addition, the EVFTA helps stabilize supply chains, facilitates businesses' access to raw materials, machinery, and modern equipment from the EU, and promotes green transformation, raising production standards to meet international market demands.

The tea industry is one of the typical sectors that has successfully taken advantage of the opportunities from the EVFTA. Hoai Trung Tea Co., Ltd. (Chi Tien commune) currently produces about 1,000 tons of finished tea products annually. Besides traditional black tea, the company has boldly invested in a green tea production line, with some products achieving national 5-star OCOP standards and exporting to many European markets. According to Ms. Bui Thi Mao, Director of the company, to produce high-quality products, the business focuses particularly on developing sustainable raw material areas, selecting good tea varieties, applying organic farming practices, and ensuring safety standards and traceability.

Hoai Trung Tea Company Limited (Chi Tien commune) currently produces approximately 1,000 tons of finished tea products annually.

Phu Tho's wood industry is also gradually asserting its position in the international market. With over 123,000 hectares of planted forests and approximately 200 wood processing enterprises and cooperatives, Phu Tho has become an important wood production center in the Northern Midlands and Mountains region. The province's wood products are diverse, ranging from wood chips and veneer to high-value-added refined products. Many businesses have exported products to the US, Japan, South Korea, China, and EU countries. According to Mr. Nguyen Thanh Minh, Director of Thanh Minh MN Phu Tho Co., Ltd., businesses are actively investing in technological innovation, expanding production, and focusing on high-value product lines for sustainable export.

Simultaneously, supporting industries are becoming a crucial foundation for the integration process. The province currently has over 400 supporting industry enterprises in operation, of which 24 have products on the priority development list confirmed by the Ministry of Industry and Trade. Over 70 enterprises have participated in the global supply chains of major corporations such as Honda, Toyota, and Samsung, affirming the production capacity and quality of Phu Tho enterprises within the global value chain.

In the agricultural sector, developing OCOP products and granting planting area codes is identified as a key solution to enhance value and expand export markets. Currently, the province has more than 609 OCOP products achieving 3 stars or higher – a rich source of goods for accessing demanding markets. According to the Phu Tho Provincial Department of Crop Production and Plant Protection, the province has so far granted more than 660 planting area codes for products such as pomelo, oranges, bananas, tea, green squash, pumpkins, and various vegetables; of which 109 planting area codes are for export to markets such as the EU, South Korea, and China.

Along with developing production, Phu Tho is promoting investment and expanding cooperation with potential markets in Europe, the US, and Australia; while also anticipating the trend of global supply chain shifts from CPTPP and EVFTA member countries. In addition, the province focuses on promoting local investment, promptly resolving difficulties for investors, and supporting businesses in stabilizing production and expanding their scale. To date, the province has approximately 1,000 businesses involved in import and export activities; export turnover in the first 10 months of 2025 reached over 29 billion USD, estimated to reach 36.8 billion USD for the whole year, with key product groups such as machinery, equipment, electronic components, footwear, garments, and agricultural products.

In reality, not only domestic businesses but also FDI enterprises in Phu Tho are clearly benefiting from the EVFTA. Mr. Do Duc Thanh, Director of COSMOS Co., Ltd., said that although the company's products mainly serve American customers, in practice, they ship a lot of goods to the EU. Because American customers usually do business in two continents: America and Europe, exporting goods to Europe with preferential tariffs related to the EVFTA agreement will give American businesses great confidence to increase their order volume in Vietnam. This is an opportunity for companies in our province to develop more customers.

However, alongside the immense opportunities, businesses in Phu Tho still face numerous challenges such as high logistics costs, stringent EU requirements regarding environment, labor, and sustainable development; and uneven competitiveness among businesses. Given this reality, Phu Tho has identified key priorities for the future, including: developing key product groups that meet EU standards; promoting investment in technology and digital transformation in quality control; standardizing raw material areas linked to traceability; and strengthening connections with international trade promotion organizations to expand export markets.

According to Mr. Hoang Xuan Phu, to effectively utilize the EVFTA, businesses need to thoroughly understand the rules of origin – a prerequisite for enjoying preferential tariffs; proactively update tariff schedules, technical standards, and new regulations of the EU market; and invest in improving product quality and building supply chains that meet green and sustainable standards. The provincial Department of Industry and Trade will continue to support businesses through training, consulting, partner networking, and assistance in resolving any issues arising during the export process.

It can be affirmed that the EVFTA is becoming a "major gateway" for Phu Tho's goods to reach international markets. With the proactive efforts of the government, the innovative spirit of the business community, and the inherent potential of key economic sectors, Phu Tho is gradually transforming itself strongly, moving towards a modern, green, sustainable, and deeply integrated economy in this new development phase.

Tran Minh Thuat

Source: https://baophutho.vn/phu-tho-chu-dong-thuc-thi-evfta-co-hoi-moi-cho-phat-trien-ben-vung-244121.htm