Vast FTA Network: Why Vietnam is the Top Choice for Sourcing with Massive Tax Savings
Vietnam’s vast FTA network has become its greatest competitive advantage, making it a premier destination for global buyers. With 17 active Free Trade Agreements covering more than 60 countries, Vietnam offers unparalleled opportunities for tax reductions. Importing from Vietnam allows businesses to maximize profit margins by leveraging zero or near-zero preferential tariffs.
Here is the comprehensive list of agreements within Vietnam’s vast trade ecosystem:
1. High-Standard New-Generation FTAs
These broad-reaching agreements provide deep tax exemptions for major global economies:
CPTPP: (Canada, Mexico, Japan, Australia, New Zealand, etc.)
EVFTA: (Total tariff elimination with the 27 EU member states)
UKVFTA: (Direct preferential access to the United Kingdom)
2. Large-Scale Regional & Multilateral Blocs
Through its vast regional connections, Vietnam serves as a gateway to the world's biggest markets:
RCEP: The world’s largest FTA including China, Japan, Korea, Australia, and New Zealand.
AFTA: Duty-free trade across the ASEAN region.
ASEAN Plus FTAs: Strategic tax-saving agreements with China, Korea, Japan, India, and Australia-New Zealand.
3. Key Bilateral FTAs
Vietnam has also expanded its reach through specific bilateral partnerships:
VKFTA (South Korea) & VJEPA (Japan)
VCFTA (Chile) & VN-EAEU (Russia, Belarus, Kazakhstan, etc.)
VIFTA (Israel) & V-UAE CEPA (United Arab Emirates)
The sheer scale of Vietnam’s vast FTA network ensures that "Made in Vietnam" products enjoy a level of tax efficiency that few other nations can match. For any business looking to optimize costs, Vietnam is no longer just an option—it is a strategic necessity.