The EU economy in the first half of 2025 and prospects for the second half of the year: Implications for Vietnam - EU trade and investment

Nguyen Truc Le; Vu Thanh Huong; Tran Huong Linh; Hoang Thi Nhat Huyen; Hoang Vu Linh Chi; Anuj Kumar

doi:10.57110/vnu-jeb.v5i4.441

Keywords:

EU, Vietnam, trade, FDI, EVFTA

Abstract

Amid the EU’s slow economic recovery and growing uncertainties, this paper analyzes the economic, trade, and investment relations between Vietnam and the EU in the first half of 2025, while offering several policy implications for the remainder of the year, using secondary data from reputable domestic and international organizations and combining descriptive and comparative analysis. The findings show that, despite the slow recovery of the EU economy, Vietnam–EU trade continued to grow strongly, with a high trade surplus, and EU investment in Vietnam increased significantly - particularly in high-tech and renewable energy sectors. The EU-Vietnam Free Trade Agreement has demonstrated clear positive effects, while the EU-Vietnam Investment Protection Agreement, if ratified, would serve as a major boost for bilateral investment. A prominent policy implication is that Vietnam should continue institutional reforms, support businesses in adapting to green standards, and position itself as a regional hub for low-carbon manufacturing.

References

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Vu, T. H., Dang, Q. C., To, N. L., & Phan, D. T. T. (2024). The impact of economic policy uncertainty on foreign direct investment and policy implications for Vietnam. Journal of Economics and Business, 4(5), 30–39. https://doi.org/10.57110/vnu-jeb.v4i5.396

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The EU economy in the first half of 2025 and prospects for the second half of the year: Implications for Vietnam - EU trade and investment

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