Vietnam, EU to Upgrade Ties, Deepen Strategic Partnership

Vietnam and the European Union are preparing to sign a draft joint statement that would upgrade their diplomatic relationship to the highest level and significantly expand cooperation across strategic sectors including critical minerals, semiconductors and infrastructure, according to a Reuters exclusive published on January 28.

The upgrade would place the EU on par with China, the United States and Russia in Vietnam's diplomatic hierarchy. The roughly eight-page draft document, which remains subject to change, is expected to be formally adopted on Thursday, January 29, during a visit to Vietnam by European Council President António Costa.

According to the draft, critical minerals are a central pillar of the planned cooperation. Vietnam holds substantial reserves of rare earths, gallium and tungsten  —  materials vital for defense and electronics  —  but much of these resources remain underdeveloped. The document states that both sides aim to promote trade and investment in 'goods, services and technologies that support the sustainable extraction and processing of critical minerals,' signaling closer collaboration in the sector.

This would open the door for European companies to participate in Vietnam's rare earth mining, separation, advanced processing and environmental management, helping to build supply chains not dominated by China. Chinese firms have previously expressed interest in Vietnam's large tungsten deposits, a development that has drawn public caution from Western governments.

Semiconductors are identified as another priority area, with cooperation spanning supply chains, packaging and testing. Vietnam has already become an increasingly important player in semiconductor assembly and testing. Intel and Amkor have operated in the country for years, while parts of ASML's supply chain have shifted to Vietnam. Earlier this month, Vietnam began construction of its first semiconductor manufacturing plant.

Infrastructure investment also features prominently in the draft. The EU has expressed interest in participating in Vietnam's infrastructure development, particularly in high-speed rail. Vietnam aims to build a nationwide high-speed rail network, a project expected to be the largest in the country's history.

In the security domain, both sides signal an intention to strengthen cooperation, with the EU considering the transfer of 'non-sensitive defense technology and know-how.' Telecommunications is another focus area, with plans to expand cooperation on 'trusted communications infrastructure,' including 5G and satellite communications. The document emphasizes the development of 'trusted' 5G networks, even as Huawei has already secured parts of Vietnam's 5G development contracts.

The draft joint statement underscores Vietnam's growing role as a strategic balancing point amid intensifying competition among major powers. It also reflects Hanoi and Brussels' shared interest in 'de-risking' cooperation in response to global supply chain realignment, geopolitical tensions and the green transition  —  particularly in critical raw materials and advanced technology sectors.