Vietnam and the European Union (EU) elevated their bilateral relations to a comprehensive strategic partnership on Thursday, January 29, 2026, during European Council President Antonio Costa's official visit to Hanoi. The agreement, hailed as a "significant new milestone" by Costa, aims to deepen collaboration across trade, sustainable development, and digital transformation while addressing shared challenges like climate change.
The partnership builds on Vietnam's rapid economic growth, driven by its role as a global manufacturing hub for electronics and consumer goods. Despite achieving a 7% GDP growth rate in 2025, Vietnam faces mounting scrutiny over its trade surplus, which reached $32 billion last year. The EU, now Vietnam's second-largest trading partner, has emphasized balancing market access with sustainable practices under the new framework.
Key initiatives include accelerating the implementation of the 2020 EU-Vietnam Free Trade Agreement (EVFTA), which has already boosted bilateral trade by 42% since its enactment. Vietnamese President Luong Cuong highlighted economic cooperation as the "main driving force" of the relationship, with EU investment in renewable energy projects expected to triple by 2030.
The EU Delegation to Vietnam noted the partnership will prioritize green technology transfers and cybersecurity collaboration, reflecting Vietnam's push to diversify export markets beyond the U.S., which currently absorbs 30% of its outbound shipments. Analysts suggest the deal positions Vietnam as a critical bridge for European businesses seeking footholds in ASEAN markets.
