Hanoi

Vietnam and the European Union on Thursday upgraded their relationship to a comprehensive strategic partnership, the Southeast Asian nation’s highest level of diplomatic engagement, as both sides recalibrate trade strategies amid disruptions to global commerce driven by U.S. tariff pressure.

The move places the EU on par diplomatically with the United States, China and Russia, and was announced during a visit to Hanoi by European Council President António Costa.

“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, adding that the partnership aims at “developing spheres of shared prosperity.”

Costa’s visit comes days after India and the European Union concluded a long-awaited free trade agreement following nearly two decades of negotiations.

Vietnamese President Luong Cuong described the upgrade as a “historic milestone,” noting that it reflects growing trust and cooperation between the two sides.

The announcement also follows the re-election last week of Communist Party General Secretary To Lam as Vietnam’s top leader, reinforcing his push for economic growth driven by sweeping reforms.

Vietnam has been among the biggest beneficiaries of globalization, emerging as a major export hub for electronics, garments and consumer goods as multinational companies diversify production away from China. That export-led growth has helped transform the economy and raise incomes, but the country’s large and persistent trade surplus has drawn scrutiny, particularly from the United States and increasingly from Europe, where officials have raised concerns about market access.

For the EU, the partnership deepens engagement with one of Asia’s fastest-growing manufacturing centers and supports efforts to diversify supply chains amid rising global trade tensions.

Bilateral trade between Vietnam and the EU reached more than $66.8 billion in the first 11 months of 2025, up 6.6% from a year earlier. The EU is Vietnam’s fourth-largest trading partner, third-largest export destination and fifth-largest source of imports, while Vietnam is the EU’s largest trading partner in Southeast Asia.

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Vietnam, which aims to become a high-income country by 2045, is actively seeking new markets to reduce dependence on the United States, its largest export destination, which absorbs about 30% of its outbound shipments. Vietnam and the EU signed a free trade agreement in 2020.