The Impact of the Vietnam-EU Free Trade Agreement on Vietnam’s Coffee Exports: Opportunities, Challenges, and Future Directions

What the paper says

This study contributes to the existing literature by empirically examining the dual impact of tariff liberalization and regulatory challenges under the EVFTA on Vietnam’s coffee export performance, using integrated econometric models. The Vietnam-EU Free Trade Agreement (EVFTA) has had a significant influence on Vietnam’s coffee exports by granting tariff free access to the EU market while introducing new regulatory hurdles. Employing a mixed methods approach that combines the Gravity Model and the Revealed Comparative Advantage (RCA) index, this study evaluates the EVFTA’s effects on Vietnam’s coffee trade with the EU. The findings reveal that, although export value has increased, persistent challenges remain—including compliance with EU quality standards, sustainability requirements, and competition from global producers. The study underscores a notable shift toward processed coffee exports and stresses the need for improved trade policies, greater value-added production, and deeper integration into global supply chains. Key recommendations include enhancing regulatory compliance, diversifying markets, and fostering innovation in the coffee sector. By providing a post EVFTA empirical assessment of Vietnam’s coffee exports through the application of the Gravity Model and RCA index, this study offers detailed insights into the interplay between tariff liberalization, non-tariff barriers, and export competitiveness. It also delivers practical implications for policymakers, exporters, and stakeholders seeking to maximize the benefits of the EVFTA while addressing structural constraints within Vietnam’s coffee industry.