 "The upgraded EU–Vietnam partnership is expected to boost cooperation in research, technology, energy and critical minerals. (Reuters)")
The European Union and Vietnam are set to raise their relationship to the highest level during a visit to Hanoi on Thursday by European Council President Antonio Costa, according to an EU official, reported Reuters. The move comes as both sides seek to broaden international partnerships amid disruptions linked to US tariffs.
The visit follows the reappointment of To Lam as Vietnam’s top official, potentially making Costa the first leader of a major power to meet him since the ruling Communist Party appointed him for a new term as general secretary on Friday.
Upgrade long in planning
The elevation of ties had been planned for months and was delayed largely because of scheduling complications, the official said, speaking on condition of anonymity.
The change would place the EU on the same tier as China, the US and Russia among others, further expanding Vietnam’s advanced partnerships in line with its strategy of balancing major powers.
Such upgrades are largely symbolic, as they mainly involve more frequent high-level meetings and usually no binding agreements.
Vietnam’s relations with the United States deteriorated last year after the Trump administration imposed tariffs, despite a bilateral upgrade agreed during a visit to Hanoi in late 2023 by former president Joe Biden.
The enhanced partnership with the EU is expected to lead to greater cooperation across several areas, including research, technology, energy and critical minerals, according to a draft joint statement cited by the official. Vietnam holds significant but often underused deposits of rare earths, gallium and tungsten.
The Southeast Asian country, which relies heavily on trade, plays a key role in global supply chains, particularly for electronics, clothing and footwear. It has multiple free trade agreements with partners, including one with the European Union.
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View AllTrade tensions and EU concerns
The EU has repeatedly criticised Vietnam’s implementation of their free trade agreement, which has increased Vietnam’s surplus with the 27-nation bloc since it came into force in 2020. The EU deficit with Hanoi stood at 42.5 billion euros (50.26 billion dollars) in 2024.
EU officials say Hanoi has hindered EU imports through various non-tariff barriers, though Brussels has so far taken limited action in response.
Facing tariffs from the United States, the EU has prioritised strengthening ties with economic partners and expanding trade agreements, including recently with South American countries in the Mercosur bloc.
Before travelling to Vietnam, Costa is due to visit India. There, together with European Commission President Ursula von der Leyen, he plans to hold trade talks with Indian Prime Minister Narendra Modi, according to a schedule published by the EU Council.