35 Years of Vietnam-EU Relations: Deeper Cooperation, Broader Opportunities

On this occasion, our reporter had an interview with Chairman of EuroCham Vietnam Bruno Jaspaert to discuss the key achievements and prospects for investment and trade cooperation between the two sides in this new phase.

How would you evaluate the progress and major achievements in Vietnam-EU relations over the past 35 years, particularly in the fields of politics, diplomacy, and cooperation?

Over the past 35 years, the EU-Vietnam relationship has evolved from early diplomatic engagement into a confident, strategic partnership rooted in shared values, trust, and long-term vision. In truth, this journey began even before the establishment of official ties – with Europe supporting Vietnam through aid programs to enable socio-economic recovery. Over time, it has grown into one of the most comprehensive partnerships in Asia, spanning diplomacy, trade, education, energy, and innovation.

Deputy Prime Minister Bui Thanh Son (L) and EuroCham Chairman Bruno Jaspaert at a dialogue with senior leaders of European enterprises on green economy and sustainable development

Diplomatically, both sides have shown remarkable consistency in dialogue. From the signing of the EU-Vietnam Free Trade Agreement (EVFTA) to the expanding political exchanges paving the way toward a Comprehensive Strategic Partnership, these efforts have created not just stronger institutions, but a deeper level of mutual confidence – the kind that allows us to tackle challenges together, constructively and openly.

Economically, the EVFTA has been a major catalyst for growth. Vietnam is now the EU’s largest trading partner in ASEAN and its 16th largest globally. In Q1 2025, the EU even surpassed China to become Vietnam’s second-largest export market, purchasing nearly US$14 billion in goods. Five years since its entry into force, the EVFTA has generated over US$300 billion in trade – nearly 40% of total two-way commerce since 1995. EuroCham’s BCI data show that 21% of our members directly benefit from the EVFTA, with average revenue increases of 8.7% and top performers reaching up to 25%.

Yet this partnership extends far beyond trade. Through the EU’s Global Gateway and the Just Energy Transition Partnership (JETP), 24 green projects worth an estimated US$7 billion have been identified in Vietnam – including hydropower and transmission line upgrades critical to the country’s energy transition. These projects represent not just infrastructure, but shared purpose – tangible proof that the EU–Vietnam partnership is as much about sustainability as it is about prosperity.

If I were to sum up 35 years in one word, it would be growth. This has never been a transactional partnership, but rather, transformational. Europe and Vietnam now see each other not merely as trading partners, but as co-creators of sustainable growth and stability in an increasingly complex world.

What are your assessments of the current trade and investment relationship between Vietnam and the EU, and what opportunities or challenges do businesses face in this cooperation?

The EU-Vietnam economic relationship today is resilient, adaptive, and entering a more confident phase after a period of caution. Vietnam has consolidated its position as one of Europe’s most trusted partners in Asia – and our Q3 2025 Business Confidence Index (BCI) captures that renewed momentum clearly.

After a tense second quarter shaped by global tariff shocks and shifting trade routes, European business sentiment has rebounded strongly. The BCI climbed from 61.1 to 66.5 – its highest point in three years and above pre-tariff levels – marking a clear turnaround from the uncertainty of H1. This rebound reflects three main drivers: the Government’s active reform agenda (notably on work-permit and visa procedures), rising public investment in infrastructure, and solid macroeconomic fundamentals. GDP expanded 8.23% year-on-year in Q3, inflation stayed low, and domestic consumption remained stable.

Compared with Q2, when tariff anxieties dominated headlines, the tone among European investors has shifted from “wait and see” to “steady and adaptive.” In Q2, 15% of firms reported a negative financial impact from trade disruptions, yet by Q3 that share rose to 31% – offset by 9% of firms reporting gains, up from 5%. This polarisation shows not a collapse in confidence, but a sorting of winners and learners – companies finding ways to reposition supply chains, diversify sourcing, and seize new export routes created by global re-alignment.

Crucially, relocation plans remain minimal. Only 3% of European firms are considering moving operations out of Vietnam, while another 3% are exploring expansion within the country. That tells us that, despite turbulence, Vietnam continues to be viewed as a safe, reliable, and cost-competitive production base for the long term.

Challenges persist – especially around regulatory inconsistencies across provinces, limited renewable-energy access, and ongoing skills gaps – but these are well-understood issues that can be solved through dialogue and reform. What matters most is the trend: confidence is stabilising, not slipping. We are not investing in short-term certainty; we are investing in Vietnam’s long-term direction.

EU sustainability frameworks such as CBAM, EUDR and ESPR will test readiness but also open premium markets for compliant Vietnamese exporters. For those who adapt early, Europe’s demand for transparent, low-carbon supply chains is an unprecedented opportunity. The relationship is evolving – from trade to transformation – and that is precisely where Vietnam and the EU’s partnership can reach its next level of growth.

What are EuroCham’s priorities or initiatives to further promote EU investment and strengthen the business environment in Vietnam?

EuroCham’s mission is simple yet ambitious: to turn potential into progress. Our work revolves around ensuring that European expertise and Vietnam’s aspirations translate into real, measurable outcomes.

Our top priorities remain regulatory clarity, administrative simplification, and investment in infrastructure, renewable energy, and human capital. These are not abstract goals – they are the foundations of sustainable, long-term growth.

To deliver this, EuroCham acts as both a bridge and a catalyst. Through 20 sector committees, we provide evidence-based recommendations to the government. Our annual Whitebook and quarterly Business Confidence Index (BCI) help identify pain points and shape practical reforms. Our flagship platforms – the Green Economy Forum & Exhibition (GEFE) and the Green Economy Forum (GEF) – bring together policymakers, investors, and academics to share real-world solutions.

This year’s GEF 2025, themed “Shaping Changes – Building Futures,” will take place on 27 November in Hanoi. The event will spotlight how innovation, public–private partnerships, and forward-thinking policy can drive sustainable growth. I am personally proud of these initiatives because they show how collaboration can create lasting value – from policymakers to large corporation leaders and small business owners.

Vietnam’s young generation is exceptionally talented and creative. We have seen it firsthand through the Student Challenges under GEFE 2024, where university students tackled real sustainability problems. The winners went on study trips to Hamburg and Singapore – and came back inspired to turn ideas into action in their own communities. That is what gives me confidence in Vietnam’s future – its people.

At EuroCham, we remain committed to building platforms that connect, empower, and enable. Together, we can make Vietnam’s rise not only fast, but also sustainable and inclusive.

In your view, what measures should both sides take to remove barriers and foster a deeper, more sustainable partnership in the coming years?

The next decade must be about turning shared ambition into shared achievement. Vietnam and the EU both stand at pivotal moments in their development – and our partnership can help shape how the global economy grows greener, fairer, and more resilient.

During EU Trade Commissioner Maroš Šefčovič’s visit to Hanoi in September, we held a candid, forward-looking dialogue on how to remove bottlenecks and facilitate smoother trade and investment from both sides. The message was clear: while Europe may not yet be Vietnam’s largest investor, it is one of the most committed. European investors come not only with capital but with purpose – investing in quality, sustainability, and long-term partnership. And from this

For Vietnam, the next steps lie in consistency and coordination. Harmonising regulations across provinces, expanding single-window customs and digital traceability systems, and modernising grid infrastructure are essential to boost investor confidence. Strengthening vocational training and ESG skills will also ensure that the Vietnamese workforce can thrive in high-value, sustainable industries.

For the EU, accelerating technical assistance and ratifying the EVIPA will provide investors with greater certainty. Dedicated task forces on customs, digital trade, and green finance could turn dialogue into action.

But at the heart of this partnership is something beyond policy – it is people. The most genuine and realistic movements come from those who’ve been here long enough to call Vietnam home, as I proudly do after eight years in this country.

That is what makes this partnership so special – it is built not just on trade or treaties, but on trust, shared learning, and a common belief in progress. The next 35 years will not simply be about growing faster but growing wiser – ensuring that Vietnam’s rise continues to be one of resilience, responsibility, and hope for generations to come.

Thank you very much!