THE signing of a free trade agreement between Vietnam and the European Union is expected to result in the Southeast Asian luring more EU trade away from other nations in the region.
Vietnam accounted for 19.1 per cent of the EUR201.4 billion (US$227 billion) in trade between the EU and Asean in 2015, up from 15.8 per cent in 2014, reports Bloomberg.
Exports from Vietnam to the EU are dominated by phones, electronic products, footwear, clothing and coffee.
"Vietnam is one of the growing markets and we've seen a very positive development with our trade relationship with that country," said EU ambassador to Singapore Michael Pulch. 
That growth coupled with the finalisation of the free trade pact points to a dynamic trade relationship in the future," he said.
Vietnam last year overtook its Asean neighbours to become the biggest exporter to the US, capitalising on shifting production patterns as labour costs rise in China, attracting investment from companies like Samsung.
While EU trade with Singapore, which is still the bloc's biggest partner in Southeast Asia, its market share of total trade fell to 24.1 per cent from 25.1 per cent. Malaysia, Thailand and Indonesia also lost market share to Vietnam.