Sustainability roadmaps are the key to Vietnam’s trade diversification

In late March, Belgium’s King Philippe and Queen Mathilde arrived in Vietnam for a state visit, the first since 2013. Set against Hanoi’s cool spring air, the occasion offered a refreshing contrast to the heated churn of global commerce. Part of a wave of high-level engagements, the visit reaffirmed Vietnam’s growing allure on the world stage. Beyond ceremonial gestures, the royal tour illuminated the rich potential for Vietnam-Belgium collaboration. With shared ambitions in high-tech innovation, circular economies, and trade, both nations are crafting a dynamic new chapter, powered by the EU-Vietnam Free Trade Agreement (EVFTA).

Diversification can’t wait

The global trade landscape in 2025 is a challenging one. Tensions between major powers and shifting tariff policies ripple through supply chains, touching economies like Vietnam that rely on exports. The U.S. accounts for 30% of Vietnam’s 2024 exports, but possible tariffs of 10-20% could raise costs significantly, according to the Ministry of Industry and Trade. This moment invites Vietnam to explore fresh markets and connections.

At the same time, the EU’s environmental guidelines, such as the Carbon Border Adjustment Mechanism (CBAM), encourage Vietnamese businesses to embrace greener practices to stay competitive. Thailand, for instance, grew its exports to the EU and Japan by 15% from 2020-2023, showing the rewards of diverse markets. Vietnam, with its strong U.S. focus, could find similar opportunities by branching out.

Dr. Miguel A. Ferrer, Chairman of the Belgium-Luxembourg Chamber of Commerce (Beluxcham) in Vietnam, shares an encouraging view: “EVFTA offers Vietnam a gateway to Europe’s high standards and exciting prospects. By diversifying, businesses can better navigate global shifts.” Reflecting on a meeting with Vietnam’s Prime Minister alongside European business leaders, Dr. Ferrer was inspired: “The Prime Minister said, ‘If something is reasonable, we must act on it without delay. If not, we will continue discussions until a solution is found.’ In my view, this is the kind of leadership mindset that businesses should embrace.”

Vietnam-Belgium trade: bridging gaps, seizing opportunities

Since EVFTA began in 2020, trade between Vietnam and Belgium has blossomed to $4.45 billion by 2024. Still, some Belgian businesses find it tricky to fully embrace Vietnam’s market. “EVFTA is like a treasure waiting to be shared,” Dr. Ferrer says. “Belgian firms need a bit more guidance, and Vietnamese businesses could reach out with bolder steps.”

Meeting CBAM’s green standards can feel daunting, with potential cost increases of 10-15% for those unprepared. Yet Dr. Ferrer sees a brighter side: “Start with sustainable practices early, and the savings can outweigh the effort.” He believes quality should shine everywhere—products crafted for Europe deserve to delight at home, too. In his own work with energy efficiency and shrimp feed production, Dr. Ferrer streamlined processes to cut costs tenfold, growing markets while meeting global standards. Accordingly, he urges firms to adopt comprehensive compliance roadmaps to navigate barriers like CBAM and boost long-term competitiveness.

Administrative delays also pose hurdles, with Vietnam’s licensing averaging 16 day, lagging behind Thailand’s 9 days (World Bank, 2023). Yet, Dr. Ferrer remains optimistic: “Vietnam’s leadership is determined to untangle these knots, paving the way for businesses to thrive.”

On the opportunity front, Vietnam is a vital export supplier to Belgium, particularly in seafood and agricultural products. “Vietnam is the world’s second-largest shrimp exporter after Ecuador, and demand in Belgium is soaring,” Dr. Ferrer emphasizes. Tropical fruits, flowers, and decorative timber also hold promise but require technological and production investments. Conversely, Belgium’s strengths in agriculture, pharmaceuticals, and renewable energy offer significant partnership potential.

Under an action-focused board’s leadership, Beluxcham bridges Vietnam-Belgium business ties through events for small and medium enterprises, paying attention to tariffs, trade, and collaboration. Dr. Ferrer envisions Vietnam’s innovative manufacturing and services will capture a major percentage of EU service exports within a decade, even surpassing India, thanks to its energy and thoughtful strategies.

The Belgian royal visit was not just a diplomatic milestone but a testament to the enduring potential for Vietnam-Belgium collaboration. With Beluxcham’s commitment and EVFTA’s support, both nations are charting a prosperous future, driven by innovation and connectivity in trade and investment.