Update: 27.06.2025

I. Introduction

    In April 2025, under the administration of President Donald Trump, the U.S. government-imposed tariffs of up to 46% on exports from Vietnam, including key products such as textiles, electronics, agricultural goods, and wooden furniture. Although the measure was suspended for 90 days, it created a major shock for the export business community, causing significant difficulties for many key industries and forcing them to cut production or seek alternative markets (Reuters, 2025).

    To get ahead of this challenge, Vietnam should proactively leverage its network of signed free trade agreements (FTAs), such as the EVFTA, CPTPP, and RCEP. These FTAs may not only help diversify export markets and attract international investment flows but also serve as drivers for institutional reform and the enhancement of the country’s overall competitiveness (Vo, 2024).

    However, to fully capitalize on the benefits of FTAs, Vietnamese businesses must comply with strict rules of origin, technical standards, and trade transparency requirements. Adherence to these conditions not only enables businesses to access tariff preferences but also contributes to improving product quality, reputation, and competitiveness in the global market (Ministry of Industry and Trade & VCCI, 2025).

    II. Exploring Legal Protections Under CPTPP, EVFTA, and RCEP

      The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), effective since 2019, is one of the new-generation FTAs that has enabled Vietnamese goods to penetrate deeply into developed markets such as Japan, Canada, Australia, and Mexico by cutting approximately 95% of intra-bloc tariffs, thereby creating a more competitive environment. This preferential tariff policy not only helps reduce Vietnam’s dependence on the U.S. market but also diversifies trade risks amid prolonged global trade tensions (Nguyen, 2024). Vietnam’s exports have grown significantly since joining the CPTPP. For instance, according to a report by the Vietnam National Textile and Garment Group (Vinatex), textile and garment exports to CPTPP member countries increased by 22.5% in July 2024. Vietnamese garments have become particularly attractive in Canada due to tariff exemptions, while footwear and seafood products have also achieved positive results in Japan and Australia (Vinatex, 2024).

      To enjoy tariff preferences under CPTPP, Vietnam’s exports must comply with the rules of origin outlined in Chapter 3 of the agreement. Specifically, products must either meet a minimum regional value content or undergo substantial transformation in one or more CPTPP member countries. Eligible goods must be accompanied by a CPTPP Certificate of Origin (C/O) or may be self-certified if the enterprise has been approved by the Ministry of Industry and Trade or another competent authority (MOIT, 2024).

      To maximize CPTPP benefits, businesses must adhere to technical conditions and documentation requirements, particularly rules of origin, and maintain origin verification records for at least five years. Exported products must meet technical standards, sanitary and phytosanitary (SPS) regulations, and transparency obligations. Compliance not only secures tariff exemptions but also boosts global competitiveness. CPTPP also promotes high standards on labor, the environment, and intellectual property rights, fostering a transparent and sustainable business environment and increasing foreign investor confidence. For example, FDI from Japan into Vietnam reached nearly USD 2.9 billion in 2023, a 51% increase from the previous year, reflecting Vietnam’s positive growth outlook following CPTPP implementation (MPI, 2023).

      The EU-Vietnam Free Trade Agreement (EVFTA), effective since August 2020, provides important tariff preferences that help Vietnam cope with global trade tensions and reduce reliance on the U.S. market. By eliminating up to 99% of tariffs between the two regions, the EVFTA enables Vietnam to redirect exports to major developed EU markets without facing tariff barriers. Key Vietnamese export sectors such as textiles, agriculture, and electronics have seen strong growth due to EU tariff cuts and simplified customs procedures. According to the Vietnamese Ministry of Industry and Trade, export turnover to the EU reached USD 47.5 billion in 2022, a rise of more than 20% from the previous year. Notably, footwear, garments, electronics, coffee, and seafood have recorded outstanding growth, with tuna and shrimp exports benefiting from tax cuts of 12–18%, making them more competitive than products from countries like Thailand and Indonesia (Nguyen, 2024).

      EVFTA not only offers tariff preferences but also expands Vietnam’s legal framework for deepening partnerships with the EU. Tariff reductions and streamlined customs processes facilitate trade and enhance international competitiveness for Vietnamese enterprises. To access these benefits, businesses must comply with strict rules of origin, thereby promoting a shift from simple processing to integrated production using domestic or EVFTA-region materials (MOIT, 2024).

      Another key aspect of the EVFTA is intellectual property protection, which helps Vietnam raise its legal standards and protect domestic business rights. The agreement provides a clear framework for protecting Vietnamese brands, patents, and trademarks in the EU market, fostering a transparent and sustainable business environment. This not only safeguards business interests but also boosts foreign investor confidence. Additionally, the EVFTA encourages EU direct investment into strategic sectors in Vietnam, such as renewable energy, logistics, and pharmaceuticals. FDI from the EU into Vietnam surpassed USD 15 billion in 2022, a sharp increase from just USD 2 billion in 2021, thanks to improved market access and legal transparency (EuroCham, 2023).

      The Regional Comprehensive Economic Partnership (RCEP), effective from January 2022, includes 15 countries: the 10 ASEAN members along with China, Japan, South Korea, Australia, and New Zealand (ASEAN Secretariat, 2022). RCEP enhances trade between Vietnam, China, and ASEAN through simplified rules of origin, import tax reductions, and streamlined customs procedures. These reforms make the movement of goods, components, and materials between member countries easier and more cost-effective, creating opportunities for Vietnam’s export manufacturing sectors such as electronics, textiles, and machinery (MOIT, 2023). For example, electronics companies in Vietnam can import components from China or South Korea, assemble them in Vietnam, and export to Japan or Australia, leveraging regional supply chain advantages (Nguyen, 2023).

      From a legal perspective, RCEP provides a stable and transparent trade environment, making it easier for Vietnamese exporters to access regional markets and reducing tariff and procedural barriers. This helps businesses maintain stable trade performance and contributes to Vietnam’s rise as a strategic manufacturing hub in Asia, attracting multinational corporations such as Samsung, LG, and Intel (Nguyen, 2023). With its geographical advantages, workforce, and open trade policies, Vietnam is becoming increasingly attractive to global businesses.

      III. How Businesses Can Leverage Trade Deals to Minimize Losses

        With the resurgence of protectionist measures—particularly heightened tariffs from the United States—Vietnamese exporters are under pressure to diversify markets and mitigate potential losses. Though it is unrealistic to expect that all companies and investors can and will diversify immediately, it is fortunate that Vietnam’s robust network of Free Trade Agreements (FTAs) offers a powerful buffer. By leveraging these agreements, Vietnamese enterprises have the option to restructure their operations, capitalize on preferential market access, and ensure long-term resilience against turbulent global trade dynamics.

        The practicality of shifting exports to FTA-Partner markets will begin with strategic legal due diligence. This would include initial considerations such as:

        • Assessing the origin of goods and eligibility under the relevant FTA.
        • Reviewing existing supplier contracts and renegotiating terms to ensure compliance with FTA rules.
        • Identifying target markets with the most favourable tariff schedules.

        Shifting operations may require the setting up of representative offices (RO) or subsidiaries in FTA-partner countries which must comply with local laws and regulations. In Vietnam, this involves registering or amending business licenses, complying with foreign ownership rules, and navigating local tax laws. To fully conduct legal due diligence, trusted legal guidance is critical to ensure smooth restructuring.

        Each FTA has specific document and compliance requirements so it is important for business to ensure that their shipping documents, invoices, packing lists, and Certificates of Origin meet the standards stipulated in the respective target FTA country. This is to ensure seamless compliance with audits or inspections. Non-compliance—even if unintentional—can lead to penalties, retroactive duties, or blacklisting by customs authorities.

        At the core of these required documents is the Certificate of Origin (CO) which is crucial to claim tariff reductions or even the application of zero tariffs for qualifying goods. The CO is a document providing that the goods were produced in a FTA member country under qualifying conditions. Vietnamese exporters can apply for COs through the Ministry of Industry and Trade and the format may vary depending on the FTA requirements. Exporters should ensure that the CO is issued before or when shipping the goods, the correct HS classification codes are used, and that supporting documents allow the production origin and components to be accurately traced.

        IV. Legal Support for Businesses Navigating New Trade Routes

          Vietnamese and foreign-invested companies alike benefit significantly from legal counsel when pivoting to new trade routes. Law firms provide:

          • Strategic FTA consultation: Matching products and target markets based on tariff schedules and ROOs.
          • Contract review and drafting: Updating supplier and distributor agreements for new jurisdictions.
          • Corporate structuring: Advising on entity establishment, tax optimization, and cross-border legal compliance.

          Additionally, legal support is crucial when renegotiating long-term U.S. contracts considering new tariff risks or seeking alternatives in Asia-Pacific and EU markets. Additionally, law firms can also provide advice on trade compliance— a continuous process of alignment with both domestic and international trade laws. Law firms can assist in:

          • Developing internal compliance programs.
          • Conducting audits to ensure accurate origin tracing.
          • Training staff on FTA requirements and documentation practices.

          When disputes arise—whether from customs rejections, partner disagreements, or regulatory investigations—legal teams can step in to represent businesses in mediation, arbitration, or court proceedings. Vietnamese law firms, often in collaboration with international partners, can provide multi-jurisdictional support, especially critical when disputes involve multiple FTA members.

          • Conclusion

          As U.S. tariffs place pressure on Vietnamese exporters, Vietnam’s proactive participation in multiple FTAs gives its businesses a distinct edge. But this advantage is only real when companies understand how to activate it. Legal advisors play an essential role in guiding businesses through restructuring, trade compliance, and dispute resolution. With the right expertise, Vietnam’s exporters can turn shifting global dynamics into a strategic advantage—ensuring long-term resilience and competitiveness.

          ADK VIETNAM LAWYERS

          References (APA):

          • Reuters. (2025, April 17). Cut shifts or ramp up output? Vietnam’s exporters face dilemma amid tariff chaos. https://www.reuters.com/world/asia-pacific/cut-shifts-or-ramp-up-output-vietnams-exporters-face-dilemma-amid-tariff-chaos-2025-04-17/
          • Vo, T. T. (2024, September 3). How much of Vietnam’s policy reform is driven by FTAs? East Asia Forum. https://eastasiaforum.org/2024/09/03/how-much-of-vietnams-policy-reform-is-driven-by-ftas/
          • Ministry of Industry and Trade & Vietnam Chamber of Commerce and Industry (VCCI). (2025). Guide to effectively utilizing FTAs for Vietnamese businesses. Hanoi, Vietnam.
          • Ministry of Planning and Investment (MPI). (2023). FDI Report – Vietnam 2023.
          • Ministry of Industry and Trade (MOIT). (2024). Guidelines for CPTPP implementation for Vietnamese exporters.
          • Nguyen, H. T. (2024). Impact of CPTPP on Vietnam’s export strategy. Journal of Economics & Forecasting.
          • Vietnam National Textile and Garment Group (Vinatex). (2024). Export Market Report – July 2024.
          • Ministry of Industry and Trade (MOIT). (2024). Guidelines for EVFTA implementation for Vietnamese exporters.
          • Nguyen, H. T. (2024). Impact of EVFTA on Vietnam’s export strategy. Journal of Economics & Forecasting.
          • EuroCham Vietnam. (2023). Investment Report – Vietnam 2023.

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