Trade Patterns and Structures of Vietnam and the European Union

Abstract

The relationship between Vietnam and the European Union (EU) has significantly deepened in all fields, especially trade and investment, since the establishment of diplomatic relations in 1990. This study analyzes trade patterns and structures between Vietnam and the EU by applying the trade outcome indicators such as Revealed comparative advantage, Trade intensity, Trade complementarity, Intra-industry trade, etc. The results show that the trade pattern between Vietnam and the EU is predominantly intra-industry and complementary. The trade between the two sides is not intensive, but the comparative advantage of bilaterally traded goods is high; considerable potential for further growth in trade between the two countries. The study also suggests policy implications to promote bilateral trade between Vietnam and the EU when the EU-Vietnam free trade agreement enters into force.