Vietnam and the European Union have upgraded their relationship to a comprehensive strategic partnership, the highest diplomatic tier in Vietnam’s foreign policy framework, as both sides adjust trade strategies amid disruptions to global commerce linked to U.S. tariff pressures.
The announcement was made during a visit to Hanoi by Antonio Costa, who emphasized the importance of reliable partnerships at a time when the rules-based international order faces mounting challenges. He said the enhanced relationship aims to foster shared prosperity and reinforce predictable cooperation between the two sides.
Vietnamese President Luong Cuong described the move as a historic milestone. The upgrade places the EU on the same diplomatic level as partners such as the United States, China, and Russia. It comes shortly after the re-election of Communist Party General Secretary To Lam, who has promoted an agenda of economic expansion driven by structural reforms and deeper global integration.
Vietnam has been a key beneficiary of globalization, becoming an export powerhouse for electronics, garments, and consumer goods as multinational corporations diversify production away from China. However, its persistent trade surplus has drawn scrutiny from both Washington and European capitals, where concerns over market access have surfaced.
For the EU, strengthening ties with Vietnam enhances engagement with one of Asia’s fastest-growing manufacturing hubs and supports efforts to diversify supply chains. Bilateral trade in the first 11 months of 2025 reached more than USD 66.8 billion, up 6.6% year-on-year. The EU is Vietnam’s fourth-largest trading partner and third-largest export market, while Vietnam is the EU’s largest trading partner in Southeast Asia.
The partnership builds on the EU – Vietnam Free Trade Agreement, which entered into force in 2020, and reflects Vietnam’s broader ambition to achieve high-income status by 2045 through expanded market access and reduced dependence on the United States, currently its largest export destination.
Source: AP News
