Vietnam positioned as EU’s strategic anchor in ASEAN: ambassador

Announced on January 29 in Hanoi during President of the European Council António Costa’s visit, this upgrade marks the EU’s first comprehensive strategic partnership with a country in Southeast Asia.

Alongside the EU’s strategic partnership with ASEAN, the elevation of EU-Vietnam relations underlines the strong focus on partnership that the EU and its 27 member states place on this region.

That the elevation of the relations is agreed the same week that the EU and India also announced a free trade agreement highlights the EU’s commitment to rules-based free trade and international partnerships.

A long-term commitment to Vietnam

Vietnam has just concluded the 14th Party Congress, setting out a clear, long-term development vision to 2045.

In a period when the rules-based international order faces heightened pressure and global supply chains are being re-wired by tariff and tech competition, strengthening EU–Vietnam ties is both strategic and urgent.

The upgraded partnership is therefore not symbolic; it is timely and highly practical, providing a strong and predictable framework through which the European Union and its member states can turn strategic orientation into concrete results over the coming years.

As a member state of the European Union, Sweden views this upgrade as a clear expression of the EU’s long-term commitment to Vietnam.

The EU sees Vietnam not only as a key partner, but as a strategic anchor in ASEAN, with the EU now Vietnam’s fourth-largest trading partner, third-largest export market and fifth-largest import source, and Vietnam the EU’s largest trading partner in ASEAN.

Amid increasing regional tension and great-power competition, deepening cooperation with Vietnam strengthens economic resilience, maritime security dialogue and the broader rules-based architecture in the Indo-Pacific

This partnership also reflects Vietnam’s growing role in regional and global value chains, supported by the EU–Vietnam Free Trade Agreement (EVFTA) that has expanded bilateral trade since entering into force in 2020.

The comprehensive strategic partnership opens up new, concrete opportunities for cooperation — from trade and high-quality investment to climate action, energy transition, digital transformation and skills development.

It will strengthen regulatory dialogue, enhance business confidence and create conditions for more EU companies to invest, expand production and build long-term partnerships in Vietnam.

Implementation will build on the EVFTA’s tariff elimination and market-opening measures, and be complemented by the Investment Protection Agreement once ratified by all EU member states.

In parallel, cooperation under Vietnam’s Just Energy Transition Partnership (JETP) and the EU’s Global Gateway can accelerate a transition to renewable energy, grid modernization and sustainable infrastructure.

Swedish businesses express confidence in Vietnam

For Sweden, this upgraded EU–Vietnam relationship adds a strong new layer to our already close bilateral cooperation.

Since last year, Sweden has been a sectoral strategic partner of Vietnam in science, technology and innovation, and these areas are now also central priorities in Vietnam’s national development agenda.

The stronger EU framework will help scale up joint research, innovation ecosystems, digital solutions and green technologies – areas where Swedish companies are global leaders.

This is not theoretical. According to the latest Business Climate Survey by Team Sweden, Swedish companies operating in Vietnam report high levels of confidence in the Vietnamese market and a clear intention to continue investing and expanding production. That confidence is built on Vietnam’s stability, reform orientation and openness to innovation. The upgraded EU–Vietnam partnership will further reinforce these positive conditions and help deliver tangible, long-term results for both sides.

Swedish companies are ready to contribute more. Building on EVFTA and the new EU framework, Swedish firms in telecoms, industrial automation, advanced manufacturing, sustainable packaging, mining equipment, life sciences and retail are positioned to support Vietnam’s green transition, digitalization and skills development.

Clear, predictable regulation and strong standards will help unlock additional high-quality investment aligned with Vietnam’s 2045 vision.

In a time of heightened geopolitical tension, Sweden believes strengthened partnerships are the surest path to shared prosperity and security.