Vietnam, EU upgrade relations as Trump roils global trade
The South-east Asian nation’s economy is export-driven, and the pacts are aimed at helping it achieve double-digit economic growth
[HANOI] Vietnam and the European Union have upgraded diplomatic relations to a comprehensive strategic partnership, paving the way for deeper trade ties as US President Donald Trump’s tariffs roil global trade and strain long-held alliances.
The agreement was made on Thursday (Jan 29) during the visit of European Council President Antonio Costa to Hanoi, and aims to boost cooperation on trade and investment in semiconductors, critical raw materials and security.
“Cooperation will also be explored in areas such as energy security, including strengthened exchanges on mechanisms for crisis preparedness,” according to a statement released by the EU. “Both sides identify maritime safety and security, cybersecurity and crisis management as key areas for further cooperation, based on mutual respect for each side’s interests and priorities,” it said.
The EU and major exporters such as Vietnam are seeking more cross-border agreements in the wake of Trump’s rollout of tariffs, to diversify their markets and sources of goods. Days ago, the EU agreed on what European Commission President Ursula von der Leyen called the “mother of all deals” with India, while Vietnam now has 17 trade agreements as its global economic and security role grows.
The agreement is the first for the EU with a member of the Association of South-east Asian Nations. Vietnam has been building global ties for years, and has comprehensive strategic partnerships, its highest-level agreement, with the US, China, Russia, Japan, India, UK, France and Australia.
The South-east Asian nation’s economy is export-driven, and the pacts are aimed at helping it achieve double-digit economic growth.
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The upgrade in relations sends “a powerful signal in an unsettled world – that the EU and Vietnam are choosing long-term cooperation over short-term hedging”, Costa said in an editorial.
The push for upgraded relations “is a message to the world that we want to reinforce our partnerships with countries like India, like Vietnam”, Julien Guerrier, EU ambassador to Vietnam, told reporters in Hanoi Monday.
The EU is Vietnam’s fourth-largest trading partner, with two-way trade increasing 10 to 15 per cent annually to about US$73.8 billion in 2025, according to Vietnam government data. The EU is among Vietnam’s top 10 foreign investors, with total FDI reaching about US$30 billion.
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Economic ties between the two sides were boosted by the EU-Vietnam Free Trade Agreement, which took effect in 2020 and eliminated nearly 99 per cent of tariffs, according to a post on Vietnam’s government website. The agreement increased bilateral trade by about 40 per cent, Costa said.
Vietnam and the EU have also established a Defence and Security Dialogue mechanism. BLOOMBERG
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