EU, Vietnam 'to boost trade, investment'

The European Union and Vietnam want to boost trade and investment in critical minerals, semiconductors and infrastructure, according to a draft joint statement seen by Reuters that is set to be adopted today as the two sides upgrade diplomatic relations.

- FRANCESCO GUARASCIO

A worker uses a smartphone at a park in Hanoi. The EU and Vietnam are to sign an agreement today to upgrade diplomatic ties to Vietnam's highest level.

(AFP)

The eight-page document, still subject to change, says the EU will also explore the possible transfer of defence technology to Hanoi, as both sides seek closer cooperation on “trusted” telecom networks, at a time when Chinese companies have won contracts in Vietnam's 5G development.

The statement is scheduled to be signed when the European Council President Antonio Costa meets Vietnam’s leaders in Hanoi today, days after the ruling Communist Party reappointed To Lam as the country’s top leader.

The two countries will upgrade diplomatic ties to Vietnam’s highest level, similar to the United States, China and Russia. An EU-Vietnam free trade agreement entered into force in 2020.

While not binding, the document carries political weight and includes indirect criticism of the international strategies of the United States, China and Russia.

The European Council declined to comment on the draft document and Vietnam's government did not respond to a request for comment.