Economic, trade and investment cooperation forms the core pillar of the Vietnam – European Union Comprehensive Strategic Partnership, reflecting a growing convergence of long-term economic interests and development stategies between the two sides.

Garment production for export to the EU at TNG Garment Company in Thai Nguyen province.

Professor Nguyen Van Phu of Paris Nanterre University, said the significance of the upgraded relationship lies less in political symbolism than in its solid economic foundations and strategic complementarities.

Speaking to Vietnam News Agency correspondents in France, Phu noted that a key driver of Vietnam – EU economic ties today is the shift toward reducing excessive dependence on any single major market, particularly the US.

For Vietnam, he said, diversifying trade and investment partners has become a risk-mitigation strategy amid unpredictable policy shocks and trade tensions. From the EU’s perspective, expanding economic links beyond the US is equally critical to safeguarding supply chain security and maintaining Europe’s economic competitiveness.

In this context, economic, trade and investment cooperation has emerged as the central pillar of the Comprehensive Strategic Partnership, shaping and guiding the overall bilateral relationship.

The two sides have reaffirmed their commitment to fully and effectively implementing the EU – Vietnam Free Trade Agreement (EVFTA) while intensifying dialogue to remove technical barriers and expand market access for each other's goods and services.

Against a backdrop of global trade uncertainties, rising protectionism and increasingly fierce geoeconomic competition, he went on, the EVFTA has evolved beyond a conventional free trade agreement.

It is increasingly viewed as a strategic instrument that helps both Vietnam and the EU secure a safe, stable and predictable economic space.

Phu emphasised that Vietnam – EU economic collaboration is rapidly expanding beyond traditional goods trade into strategic sectors such as energy, critical raw materials, high technology, semiconductors, artificial intelligence, digital transformation and supply chain restructuring.

The EU is positioning itself as a partner in supporting Vietnam’s economic modernisation and its gradual alignment with green, sustainable and responsible trade standards—criteria that are becoming mandatory for access to the European market.

The proffessor said at the heart of the partnership lies strong complementarity. Vietnam needs long-term capital, advanced technology, governance expertise and high standards from Europe, home to many of the world’s most developed economies.

Conversely, the EU sees Vietnam as an attractive investment destination, a dynamic market and a vital link in its Asia-Pacific supply chain diversification strategy. This strategic compatibility underpins the durability of bilateral cooperation.

However, Phu cautioned that fully capitalising on the upgraded partnership will require deeper and more consistent institutional reforms in Vietnam. Meeting EU standards is not merely a partner obligation, but an internal necessity for sustainable development.

Exports to Europe must comply with strict requirements on safety, quality, origin, the carbon border adjustment mechanism (CBAM), labour, gender equality and sustainability.

Similarly, EU-funded investment projects in Vietnam are expected to meet high environmental, social and governance (ESG) standards.

In this broader picture, developing a transparent, stable and internationally compliant financial market is seen as a decisive condition for attracting European capital.

The legal framework must be clear, predictable and resistant to abrupt policy changes. EU investors place particular importance on the rule of law, property rights protection, contract enforcement and effective, independent dispute resolution.

Enhancing transparency and governance standards in capital markets is essential. Businesses and financial institutions must adhere to international accounting and auditing standards and ensure accurate, timely disclosure of information to reduce risks and strengthen investor confidence.

Promoting green and sustainable finance, through green bonds, green credit and ESG-linked instruments, also needs to align closely with EU strategic priorities, according to him.

Overall, the upgrade of Vietnam – EU relations to a Comprehensive Strategic Partnership opens a new phase of cooperation, with economic, trade and investment ties serving as the main pillar and driving force.

While opportunities are substantial, they are accompanied by demanding and long-term reform requirements, Phu said, adding that how Vietnam responds to these expectations will ultimately determine the substance of the partnership in the years ahead.

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