Candle Industry Insights
Trade agreements are reshaping global candle supply chains and creating new export opportunities for manufacturers in strategically positioned countries. Vietnam has emerged as a significant beneficiary of the EU-Vietnam Free Trade Agreement (EVFTA), which celebrated its sixth anniversary in August 2026 . Since the agreement came into force, bilateral trade between Vietnam and the EU has reached USD 383.8 billion, representing 42.6% of total trade between the two partners since 1995 .
In the first half of 2026 alone, bilateral trade reached USD 41.4 billion, with Vietnam exporting USD 31.8 billion to the EU and importing USD 9.7 billion . Vietnam's trade surplus with the EU reached a record USD 22 billion in just six months, exceeding the full-year surplus of USD 21.7 billion recorded in 2019 before the EVFTA came into effect . According to a survey by the European Chamber of Commerce in Vietnam, 50% of European companies in Vietnam reported directly benefiting from EVFTA tariff preferences, while 66% recorded cost savings ranging from 5% to 30% .
For candle manufacturers, Vietnam represents a compelling manufacturing and export base. The country benefits from substantial candle production capacity, with export volume reaching 103.6 million kilograms in the most recent available data—third among selected Asian peers after China and India . Vietnam's candle market was valued at USD 40 million in 2025, with a projected CAGR of 6.4% .
The strategic importance of trade agreements extends beyond tariff reductions. Vietnamese trade experts emphasize that the EVFTA is not merely a tariff reduction tool but a strategic driver for enterprise restructuring, competitiveness improvement, and deeper participation in global value chains . Nguyen Thuong Luong, Associate Professor at the National Economics University's Institute of International Trade and Economics, noted: "If Vietnam can effectively utilize the commitments in FTAs, it will broaden development space, attract high-quality investment capital, and enhance its attractiveness to international investment capital" .
However, Vietnamese enterprises face challenges in fully leveraging these agreements. Small and medium-sized enterprises still encounter resource shortages and stringent technical standards from import markets . Trade experts emphasize that enterprises need to shift their mindset from "utilizing tariff preferences" to "building long-term competitiveness through investment in technology, green transition, data management, and traceability" .
For candle manufacturers considering Vietnam as a production or sourcing base, the EVFTA provides preferential access to the EU market that will remain advantageous for approximately 3-5 years before competing nations complete their own trade agreements with the EU . This window represents a significant opportunity for strategic positioning in the European market.
