Overview
Vietnam, located in Southeast Asia, has a population of over 100 million. Following its transition to a market economy in the 1980s, Vietnam has become one of the region's most dynamic emerging economies, boasting an annual GDP growth rate of 6-7% prior to the pandemic and aiming for double-digit growth in 2026.
Our partnership
Vietnam is one of the EU's principal partners in Southeast Asia, and has the highest number of agreements with the EU in the region. This includes a Partnership and Cooperation Agreement, a Free Trade Agreement, and a Forest Law Enforcement, Governance, and Trade Voluntary Partnership Agreement.
The EU is committed to supporting Vietnam's journey towards sustainable and inclusive development, aligning its efforts with the 2021-2030 Vietnam Socio-Economic Development Strategy (SEDS), the Vietnam Green Growth Strategy, and the EU’s Global Gateway and Indo-Pacific Strategies. The EU's engagement is rooted in Vietnam's commitment to the 2030 Agenda for Sustainable Development and aims to promote sustainable green development as highlighted by the Just Energy Transition Partnership, a flagship initiative supporting Vietnam’s ambitious climate goals, clean energy transition, and net-zero emissions pathway.
Team Europe's initiatives in Vietnam bring together the EU, the European Investment Bank (EIB), a large number of Member States along with their financial institutions and European businesses.
The EU has allocated €210 million for the 2021-2024 period and an additional €83 million for the 2025-2027 period for its cooperation with Vietnam.
EU-Vietnam partnership documents can be found in the 'Related documents' section below.
Our key initiatives
- Green transition
EU cooperation with Vietnam on climate action and environmental protection covers a wide array of sectors: clean energy, low-carbon transport, ecological agriculture, and green finance, to name a few. Projects include:
- Budget support and blended finance projects that mobilise funding for sustainable energy transition, including a focus on hydropower.
- 1200 MW Bắc Ái Pumped Storage Hydropower Project, and other renewable energy projects, contributing substantially to the JETP objectives.
- Creating new frameworks under which clean energy and decarbonisation projects can be financed.
- Increasing the participation of women and girls in the green transition.
- Improving the safety and climate resilience of northern Vietnam against water-related hazards.
- Strengthening the sustainable management of forests.
- Facilitating smart and ecological agriculture in the Mekong Delta.
- Developing a circular economy for the cocoa industry with a digitalised traceability system.
- Financing sustainable transportation in Hanoi, particularly its metro system.
- Responsible business and skills
The EU is helping Vietnam with skills development for the green and digital transition. It is specifically helping the Vietnamese Government increase the quality and coverage of skills development programmes.
The two governments are also preparing to cooperate towards the transition to a circular economy through support for inclusive and responsible businesses.
- Governance
The EU is working with Vietnam on good governance, strengthening rule of law and human rights, empowering civil society, and enhancing economic governance and public financial management.
