EU and Vietnam to Elevate Relations as Both Sides Seek Stronger Global Partnerships

BY EMMANUEL OGBONNA

The European Union and Vietnam are set to formally elevate their bilateral relationship during a visit to Hanoi on Thursday by European Council President António Costa, reflecting a shared effort to deepen international partnerships at a time of growing global trade uncertainty and shifting geopolitical dynamics.

An EU official said the move will raise ties to Vietnam’s highest diplomatic level, placing the bloc alongside countries such as China, the United States and Russia in Hanoi’s hierarchy of strategic partners. The upgrade has been in preparation for several months but was delayed largely because of scheduling constraints on both sides, according to the official, who spoke on condition of anonymity.

Costa’s visit comes shortly after Vietnam’s ruling Communist Party confirmed Tô Lâm for a new term as its general secretary, consolidating his position as the country’s top political leader. The timing could make Costa the first leader from a major power to meet Lâm since his reappointment, lending additional political weight to the trip.

Vietnam has steadily expanded its network of advanced partnerships as part of a long-standing strategy of balancing relations among major powers while preserving its political autonomy. Elevating ties with the EU fits squarely within that approach, further diversifying Hanoi’s diplomatic and economic relationships at a moment when global trade patterns are being reshaped by protectionist pressures.

While such diplomatic upgrades are often described as symbolic, they typically lead to more frequent high-level exchanges and closer coordination across a range of policy areas. They do not usually involve binding treaties, but they can pave the way for deeper cooperation and future agreements.

According to a draft joint statement, the enhanced partnership with the EU is expected to encourage greater collaboration in areas including research, advanced technology, energy and critical minerals. Vietnam is known to possess significant reserves of materials such as rare earth elements, gallium and tungsten, though many of these resources remain underdeveloped.

Vietnam’s importance to global supply chains has grown steadily in recent years, particularly in electronics, clothing and footwear. The country is highly trade-dependent and has signed numerous free trade agreements, including one with the European Union that entered into force in 2020.

That agreement has significantly expanded trade flows, but it has also contributed to a widening trade imbalance. The EU’s trade deficit with Vietnam reached 42.5 billion euros in 2024, highlighting the challenges European exporters face in accessing the Vietnamese market. EU officials have repeatedly raised concerns about non-tariff barriers that they say hinder European imports, though Brussels has so far taken limited concrete steps to address the issue.

The broader context for the EU-Vietnam upgrade includes mounting pressure on global trade from U.S. tariffs, which have disrupted established supply chains and prompted countries to seek alternative partnerships. Vietnam’s own relationship with Washington cooled last year after new tariffs were imposed, despite a high-profile upgrade in bilateral ties during a visit to Hanoi by former U.S. President Joe Biden in late 2023.

For the European Union, strengthening ties with Vietnam is part of a wider push to deepen economic relationships beyond traditional partners. Facing external trade pressures, the bloc has placed renewed emphasis on expanding its network of trade agreements and strategic partnerships, including recent efforts to advance ties with South American countries in the Mercosur bloc.

Costa’s trip to Vietnam follows a visit to India, where he is scheduled to join European Commission President Ursula von der Leyen in talks with Indian Prime Minister Narendra Modi. Those discussions are expected to focus on trade and economic cooperation, underscoring the EU’s broader strategy of reinforcing partnerships across Asia as it navigates an increasingly fragmented global trade environment.