The EU-Vietnam Free Trade Agreement (EVFTA), effective since 2020, grants Vietnam significant trade advantages, including zero-duty access to the EU market, replacing its earlier Standard Generalised Scheme of Preferences (GSP) tariffs. In addition to tariff eliminations, the EVFTA addresses non-tariff barriers, opens markets for services and investments, and aligns Vietnam with the EU’s labour and environmental standards, collectively strengthening its competitiveness and investment appeal. For Bangladesh, the withdrawal of duty-free access under the Everything But Arms (EBA) scheme post-LDC graduation presents a challenging landscape. This dual trade preference erosion, stemming from Vietnam’s enhanced access under the EVFTA and the tariff hikes facing Bangladesh after its graduation, could significantly undermine the latter’s export competitiveness in its most vital market. This paper examines these shifting dynamics, focusing on export trends, tariff profiles, and the broader implications of the EVFTA, to provide actionable insights for policymakers navigating this evolving trade environment.