<p>This research investigates virtual water trade between Vietnam and the European Union (EU) from 1993 to 2023. Specifically, it focuses on volumes, flow compositions, and environmental implications of water embedded in agricultural commodity exchanges, employing a bilateral virtual water flow model. The research calculates compositions of virtual water volumes for 90 traded commodities based on trade data and crop-specific water footprint coefficients. The results reveal that Vietnam exports 107.83 billion m³ of virtual water, with green water accounting for 95.03%, grey water 4.58%, and blue water 0.39%. Conversely, Vietnam imports 4.99 billion m³, comprising 74.35% green water, 17.63% blue water, and 8.02% grey water. This indicates that the grey water volume in Vietnam's production is excessively high, while blue water is too low. Vietnam maintains a persistent virtual water trade deficit, exceeding 102 billion m³, largely composed of green (74%) and grey (22%) water. In particular, high-volume exports of water-intensive crops under intensive agricultural models, especially coffee, rubber, and cashew nuts, underscore country’s dependence on natural resources. Conversely, imports from EU primarily consist of low-water-consuming products, reflecting a significant ecological cost asymmetry. Moreover, the research estimates water savings of 138.67 billion m³ achieved through trade specialization. However, as the share of grey water grows, it raises serious concerns about pollution and unsustainable use of fertilizers. Overall, the findings highlight urgent need for more environmentally aligned trade policies and a greater emphasis on sustainable water management in Vietnam–EU agricultural trade relations.</p> Graphical abstract <p></p>