Since the establishment of diplomatic relations in the late 20th century，bilateral trade relations have allowed the EU and Vietnam to forge strong and productive ties. With the deepening of reform and opening up，the total import and export volume of Vietnam’s products has grown rapidly. Despite the trend of trade protectionism and intensified competition，Vietnam is still benefiting from free trade with maximum openness. The EU plays a key role in Vietnam’s economic development. The signing of the EU-Vietnam Free Trade Agreement in 2020 is an important milestone in bilateral trade relations. During 30 years of economic exchanges，the EU’s trade policy towards Vietnam has transformed from “ethical trade” to “principled pragmatism”. During such interest-oriented process，political，security and strategic consideration has been integrated into the EU’s trade strategy towards Vietnam. Undoubtedly，such evolution will have an important impact on Vietnam’s labor reform，supply chain diversification and regionalization restructuring. At the same time，it will also face a series of internal and external risks and challenges such as geo-economic competition and climate change.