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EU plans to deepen ties with Vietnam amid trade disruptions, source says
European Union and Vietnam are set to elevate their relationship. European Council President Antonio Costa visits Hanoi on Thursday. This move aims to strengthen international partnerships amidst global trade challenges. The upgrade places the EU on par with other major global powers for Vietnam. Cooperation is expected in technology, energy, and critical minerals.
Hanoi: The European Union 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 U.S. tariffs.
The visit comes on the heels of To Lam's re-appointment as Vietnam's top official, potentially making Costa the first leader of a major power to meet Lam since the ruling Communist Party on Friday appointed him for a new term as general secretary.
The elevation of ties to Vietnam's highest level has been planned for months and was delayed largely because of schedule complications, the official said, speaking on condition of anonymlty.
It would place the EU on the same tier as China, the U.S. and Russia among others, further expanding Vietnam's advanced partnerships, in line with the country's strategy of balancing big powers.
The European Council declined to comment. Vietnam's 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's relations with the United States worsened last year after the Trump administration imposed tariffs, despite the upgrade of bilateral ties inked by former president Joe 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 European Union.
The EU has repeatedly criticised Vietnam's implementation of the free trade agreement, which has boosted Vietnam's surplus with the 27-nation bloc since it came into force in 2020. The EU deficit with Hanoi stood at 42.5 billion euros ($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 prioritised improving ties with economic partners and expanding trade agreements, including recently with South American nations of the Mercosur bloc.
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.
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Source: EconomicTimes
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