EU set to elevate ties with Vietnam amid trade disruptions, source says
HANOI 鈥 The European Union (EU) and Vietnam will elevate ties during a visit to Hanoi by the European Council President Antonio Costa on Thursday, an EU official said, as both sides seek to expand international partnerships amid disruptions from US tariffs.
The visit comes on the heels of To Lam鈥檚 reappointment as Vietnam鈥檚 top official, potentially making Mr. Costa the first leader of a major power to meet Mr. Lam since the ruling Communist Party on Friday appointed him for a new term as general secretary.
The elevation of ties to Vietnam鈥檚 highest level has been planned for months and was delayed largely because of schedule complications, the official said, speaking on condition of anonymity.
It would place the EU on the same tier as China, the US and Russia among others, further expanding Vietnam鈥檚 advanced partnerships, in line with the country鈥檚 strategy of balancing big powers.
The European Council declined to comment. Vietnam鈥檚 government did not respond to a request for comment.
These upgrades are largely symbolic, as they merely entail more frequent high-level meetings and usually no binding agreements.
Vietnam鈥檚 relations with the United States worsened last year after the Trump administration imposed tariffs, despite the upgrade of bilateral ties inked by former President Joseph R. Biden during a visit to Hanoi in late 2023.
MORE COOPERATION ON TECH, MINERALS
The upgrade with the EU is expected to generate more cooperation in multiple fields, including research, technology, energy and critical minerals, according to a draft joint statement, the official said. Vietnam has significant but often little exploited deposits of rare earths, gallium and tungsten.
The Southeast Asian trade-reliant nation is a major link in global supply chains, especially for electronics, clothing and footwear. It has a string of free trade agreements with multiple partners, including with the EU.
The EU has repeatedly criticized Vietnam鈥檚 implementation of the free trade agreement, which has boosted Vietnam鈥檚 surplus with the 27-nation bloc since it came into force in 2020. The EU deficit with Hanoi stood at 鈧42.5 billion ($50.26 billion) in 2024.
EU officials accuse Hanoi of hampering EU imports with multiple non-tariff barriers, but Brussels has so far taken limited action to address the situation.
Also, facing tariffs from the United States, the EU has prioritized improving ties with economic partners and expanding trade agreements, including recently with South American nations of the Mercosur bloc.
Mr. Costa will visit India before Vietnam, where together with European Commission President Ursula von der Leyen, he intends to hold trade talks with Indian Prime Minister Narendra Modi, according to a schedule published by the EU Council. 鈥 Reuters
