EU Ambassador to Việt Nam Julien Guerrier. — VNS Photo

Trọng Kiên

HÀ NỘI — On the 35th anniversary of diplomatic relations, the European Union (EU) is ready to elevate ties with Việt Nam to a Comprehensive Strategic Partnership, signalling deeper cooperation in trade, investment, climate action and security.

In a sit-down with the local media in Hà Nội ahead of the milestone (November 28, 1990–2025), the EU Ambassador to Việt Nam Julien Guerrier said both sides were entering “one of the deepest and broadest relationships we have in the region” and were now preparing to "go one step beyond" the current framework.

The upgrade, he noted, is intended to be "future proof" and guide cooperation "for the next decades" – especially in opening up new avenues for cooperation, particularly in science and technology, innovation, semiconductors, raw materials and many other fields that will be important for the development of Việt Nam in the coming years.

The announcement for the upgrade is expected within the next few months, on the occasion of a top-level visit, according to the diplomat.

Five years after the EU–Việt Nam Free Trade Agreement (EVFTA) took effect, bilateral trade – one of the major pillars of the relationship – has expanded by 40 per cent to more than 65 billion euros. Việt Nam is now the EU’s largest trading partner in ASEAN and its 16th worldwide.

“This attractiveness has also developed the interest of European companies to invest in Việt Nam,” the Ambassador said. With tariff-free access back to Europe, EU foreign direct investment in Việt Nam has risen from 22 to 30 billion euros over the past five years.

He stressed that the anticipated comprehensive strategic partnership would “reinforce our trade and investment flows” by reassuring European businesses that Việt Nam remains a priority destination, particularly as both sides push for full implementation of the EVFTA.

"We want to be able to compete fairly in the Vietnamese market, just as Việt Nam is able to compete fairly in the European market, with in particular a full implementation of the commitments that we have to one another in the EVFTA," Guerrier said, regarding the issue of balancing trade between the two sides and how it is approaching this goal.

He cited the fact that for long periods there has been a big trade deficit with Việt Nam, and part of the solution is that both sides have decided to set up a high-level task force – an agreement reached during EU trade commissioner Maroš Šefčovič's talks with Vietnamese trade minister Nguyễn Hồng Diên in Hà Nội in September – to look into the matter and to "rebalance the trade relationship."

However, Guerrier underscored that like Việt Nam, the EU is committed to supporting free and open trade and fair competition in respect of multilateral and bilateral trade agreements.

The EU Ambassador also spoke on the prospects of Vietnamese enterprises investing into the EU.

"There is currently very little investment from Việt Nam into the EU, due to the current state of development of the Vietnamese economy," he said. "But we believe that progressively we will see more and more of that investment, and we welcome that. There are already companies in the fields of IT and software that are interested in investing into Europe. We see some investment even in the textile sector as well.

"So we encourage Vietnamese companies, as they grow, to not only export to the EU, but also to invest and produce in the EU."

Climate action

Both the EU and Việt Nam have pledged to reach net zero emissions by 2050 and are working together through the Just Energy Transition Partnership (JETP). Under that mechanism, the EU, G7 members and other donors have committed to mobilising 15 billion euros for Việt Nam's renewable energy shift.

This includes support for major energy projects such as the Bản Vẽ hydroelectric plants and the offshore Cà Mau wind farm, which Guerrier described as “flagship projects progressing on the ground.”

With COP30 underway, he said it was crucial for both sides to reaffirm climate commitments and accelerate regulatory reforms so the renewable energy sector can attract large volumes of private investment.

The EU is also supportive of Việt Nam's determination and efforts to reach climate neutrality.

"It is in the interest of Việt Nam to call on European companies to ensure investments and the delivery of new infrastructure in transport, railway, industry, ports, internal waterways, airports, in digital (5G), and developments in green energy, wind energy, in particular hydroelectric power because using European companies in all these areas will enable Việt Nam to have the most modern technologies, the cleanest technologies and independent technologies that will support the strategic autonomy and the economic independence of the country," said Guerrier.

"Our companies are of course keen to work in Việt Nam, but I think that Việt Nam should be keen to work with European companies in all these areas to move towards their objective of being a developed country in 2045 in the safest, most secure, most advanced technologies in all these areas."

Security and defence: Cooperation in a volatile regional landscape

Marking the third pillar, the EU Ambassador said both Europe and Việt Nam face “an increasingly unstable and dangerous world,” including tensions in the East Sea (known internationally as the South China Sea).

With 40 per cent of EU imports and 25 per cent of its exports shipping through these waters, the bloc has a direct interest in ensuring stability and the rules-based order.

The EU and Việt Nam have already collaborated through a Framework Participation Agreement that allows joint participation in peacekeeping training. An EU military officer is stationed in Việt Nam to support peacekeeping preparation, while a Vietnamese officer is serving in an EU mission in Central Africa.

"We have a programme called Enhancing Security in and with Asia, which Việt Nam participates in as a frontrunner and where we want to cooperate on maritime security and many other aspects like cyber security in the region," he said.

35 years of development cooperation

The Ambassador underscored that Việt Nam remains the largest beneficiary of EU development aid in Southeast Asia, while the EU is the biggest provider of grants to Việt Nam. Cooperation spans environmental protection, circular economy, forest management, social development, people-to-people links, research and education programmes such as Erasmus+ and Horizon Europe.

“In 35 years, we have consistently supported the sustainable development of Việt Nam on its path to become a developed economy by 2045,” he said.

Looking to Việt Nam's ambition to become a developed country by 2045, the Ambassador said the EU would “massively support” this objective through the Global Gateway Initiative, focusing on energy, transport and digital transformation.

This includes expanding electricity generation through green energy, modernising railways and planning high-speed rail, and strengthening Việt Nam's digital infrastructure.

Regarding EU businesses' assessment of Việt Nam's ongoing major reform efforts, the Ambassador said it is still too early to have a comprehensive appraisal, but private companies have been "very hopeful that this is a very impressive reform process, both in terms of simplifying the provincial structures, simplifying the government structure, and simplifying the administrative processes for licensing."

"They think that this could lead to a real deep modernisation of the business environment," he said.

The businesses are also encouraged by the recent Politburo's Resolution on developing the private economy, Guerrier added. — VNS