HANOI, Vietnam (AP) 鈥� Vietnam and the European Union on Thursday upgraded ties to a comprehensive strategic partnership, Vietnam鈥檚 highest diplomatic level, as both recalibrate trade during disruptions to global finance driven by U.S. tariff pressure.
The upgrade places the EU on the same diplomatic footing as the , China and Russia and was announced during a visit to Hanoi by European Council President .
鈥淎t 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,鈥� Costa said, adding that the partnership is about 鈥渄eveloping spheres of shared prosperity.鈥�
Costa arrived in the Vietnamese capital Hanoi after India and the European Union reached on Tuesday after nearly two decades of negotiation.
Vietnam鈥檚 President Luong Cuong called the move a 鈥渉istoric milestone.鈥�
The announcement comes less than a week after as the country鈥檚 top leader, endorsing his vision of economic growth driven by aggressive reforms.
Vietnam has been a major beneficiary of globalization, emerging as a key export hub for electronics, garments and consumer goods as multinational firms shifted production away from China.
That export-led growth has helped lift incomes and transform the economy, but Vietnam鈥檚 large and persistent trade surplus has drawn criticism, particularly from the U.S. and increasingly from Europe, where officials have raised concerns about market access.
For the EU, the deal strengthens access to one of Asia鈥檚 fastest-growing manufacturing hubs and supports efforts to diversify supply chains as trade tensions increase.
Bilateral trade in the first 11 months of 2025 reached more than $66.8 billion, up 6.6% from a year earlier. The EU is Vietnam鈥檚 fourth-largest trading partner, third-largest export market and fifth-largest import source. Vietnam is the EU鈥檚 biggest trading partner in Southeast Asia.
Vietnam hopes to continue growth to and is aggressively seeking new markets to reduce reliance on the U.S., which is its largest export destination that absorbs about 30% of the goods Vietnam sends abroad. The two sides signed a free trade agreement in 2020.
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