Vietnam and the European Union elevated their relationship to a comprehensive strategic partnership on Thursday, during a visit to Hanoi by European Council President António Costa, marking Vietnam’s highest level of diplomatic engagement. This upgrade comes as both parties seek to adjust their trade strategies amid global financial disruptions caused by US tariff pressures. With this enhancement, the EU will now hold the same diplomatic status as the United States, China, and Russia.
“At a moment when the international rules-based order is under threat from multiple sides, we need to stand side by side as reliable and predictable partners,” Costa said, adding that the partnership is about “developing spheres of shared prosperity.”
Costa arrived in Hanoi, the capital of Vietnam, following the signing of a free trade agreement between India and the EU, which was reached after nearly two decades of negotiations. Vietnam’s President, Luong Cuong, hailed the agreement as a “historic milestone.” This announcement comes less than a week after Vietnam re-elected Communist Party General Secretary To Lam as the country’s top leader, endorsing his vision of economic growth driven by aggressive reforms.
Vietnam has become a significant beneficiary of globalisation, emerging as a key export hub for electronics, garments, and consumer goods as multinational companies have shifted their production away from China. This export-led growth has helped raise incomes and transform the economy. However, Vietnam’s substantial and persistent trade surplus has drawn criticism, particularly from the United States and increasingly from Europe, where officials have expressed concerns about market access.
For the EU, this deal enhances access to one of Asia’s fastest-growing manufacturing hubs and supports efforts to diversify supply chains amid rising trade tensions. Bilateral trade in the first 11 months of 2025 exceeded $66.8 billion, reflecting a 6.6% increase from the previous year. The EU is Vietnam’s fourth-largest trading partner, third-largest export market, and fifth-largest import source. Additionally, Vietnam is the EU’s largest trading partner in Southeast Asia.
Looking ahead, Vietnam aims to continue its growth trajectory and achieve rich-nation status by 2045, aggressively seeking new markets to reduce its reliance on the US, which currently accounts for about 30% of Vietnam’s exports. The two sides had previously signed a free trade agreement in 2020.
This article used information from The Associated Press.
