Vietnam and the European Union on Thursday upgraded their relationship to a comprehensive strategic partnership, Vietnam’s highest diplomatic designation.
The announcement was made during a visit to Hanoi by European Council President António Costa. The change places the EU on par diplomatically with Vietnam’s key partners, including the United States, China, and Russia.
“At a moment when the international rules-based order is under threat from multiple sides, we need to stand side by side as reliable and predictable partners,” Costa said. He added that the partnership would focus on “developing spheres of shared prosperity.”
Costa arrived in Vietnam after the EU finalized a free trade agreement with India earlier in the week, following nearly two decades of talks.
The upgrade follows the reappointment of Communist Party General Secretary To Lam, who has promoted economic growth through reform.
Vietnam has become a significant manufacturing center, producing electronics, garments, and consumer goods for multinational corporations. This export-led growth has boosted incomes and transformed the economy.
However, Vietnam’s large and steady trade surplus has drawn attention from key partners, including the U.S. and increasingly from Europe, where officials have raised concerns about market access.
For the EU, the upgraded relationship expands access to one of Asia’s fastest-growing manufacturing hubs and supports supply chain diversification amid global trade tensions.
Bilateral trade reached $66.8 billion in the first 11 months of 2025, up 6.6% from the prior year. The EU is Vietnam’s fourth-largest trading partner, third-largest export market, and fifth-largest import source. Vietnam is the EU’s largest trading partner in Southeast Asia.
Vietnam aims to become a high-income country by 2045 and is seeking to reduce reliance on the U.S., its top export market, which accounts for about 30% of Vietnamese exports. Vietnam and the EU signed a free trade agreement in 2020.
