Vietnam, located in Southeast Asia, has a population approaching 100 million. Following its transition to a market economy in the 1980s, Vietnam has emerged as one of the region's most dynamic emerging economies, boasting an annual GDP growth rate of 6-7% (prior to the pandemic).
As one of the European Union's principal partners in Southeast Asia, Vietnam has the highest number of agreements with the EU. This includes a partnership and cooperation agreement, a free trade agreement, and a forest law enforcement, governance, and trade voluntary partnership agreement (FLEGT).
Our partnership
The European Union 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 a sustainable green transition, highlighted by the Just Energy Transition Partnership.
Team Europe's initiatives in Vietnam bring together the EU, the European Investment Bank, and Member States including Belgium, Bulgaria, Germany, Denmark, Spain, Finland, France, Ireland, Italy, the Netherlands, and Sweden.
During the 2021-2027 period, under the Neighbourhood, Development and International Cooperation Instrument (NDICI-Global Europe), the EU has allocated €210 million to support Vietnam from 2021 to 2024. Additionally, Vietnam benefits from investments mobilised through the European Fund for Sustainable Development Plus (EFSD+), the main financial mechanism of the Global Gateway Strategy.
At the EU-ASEAN Summit in December 2022, the EU unveiled plans for a prospective investment of approximately €10 billion by Team Europe for South-East Asia. As an ASEAN member, Vietnam engages in comprehensive region-to-region cooperation with the EU, particularly through the Global Gateway flagships and the regional Team Europe Initiatives on Green and Sustainable Connectivity within ASEAN.
- 8 MARCH 2022
- 31 OCTOBER 2024
- 13 DECEMBER 2024
- 12 OCTOBER 2023
- 15 DECEMBER 2022
Our flagship initiatives
- Climate-resilient, low-carbon circular economy
- Climate resilience: Through the Team Europe Initiative, the EU supports the restoration of carbon sinks, reduction of greenhouse gas emissions, and enhancement of climate resilience. The Water and Natural Resources Management Facility (WARM) is a notable project under this initiative, financing feasibility studies and offering technical assistance for eight climate adaptation investment projects in Vietnam. The EU also collaborates with various state and non-state actors, including for the launch of the 'Women-led Green Partnership Programme' to boost female participation in green deal initiatives.
- Energy: The EU backs Vietnam's commitments to cease coal use and achieve net-zero emissions by 2050 through the Just Energy Transition Partnership (JETP). As a co-lead with the UK, the EU and the International Partners’ Group have pledged a financial package of USD 15.5 billion, with the EU contributing the largest grant portion of €176 million to JETP. Investments focus on projects like the Bac Ai Hydro Pump Storage, Vietnam's inaugural pumped storage hydropower plant.
- Forests: Emphasis is placed on forest restoration and conservation, through sustainable management practice, to prevent deforestation and degradation and improve forest-based value chains. The Sustainable Agriculture for Forest Ecosystems (SAFE) programme, a regional Team Europe initiative, supports Vietnam’s transition to deforestation-free supply chains.
- Decent employment and inclusive entrepreneurship
The EU aims to create and promote jobs in Vietnam that provide decent earnings, ensure safe working conditions, give social protection, and safeguard workers’ rights. Through a dedicated Team Europe Initiative, we aim to empower people, especially youth, to acquire the knowledge and skills needed for job opportunities providing ‘soft’ infrastructure under Global Gateway:
- Decent work: Accompanying Vietnam in its labour reform process that started during the trade liberalisation years by promoting the Decent Work Agenda and supporting the implementation of international labour standards, the elimination of unacceptable forms of labour and the reduction of inequalities in the workplace.
- Better skills: Supporting the improvement of job skills to foster climate change mitigation, green and digital transitions, particularly through technical and vocational education and training (TVET) to match national and international labour market demands. It aims to increase the recognition of TVET as a viable educational option in the green and digital transitions.
- Inclusive and responsible business: Stimulating inclusive entrepreneurship in all economic sectors, with a focus on green and climate neutral businesses, by supporting the formalisation of business, equal opportunities to start and operate businesses, in particular for EU small and medium-sized enterprises (SMEs), linking EU and Vietnamese SMEs in global supply chains, business support structures (link with ASEAN-wide networks and Enterprise Europe Network) and social entrepreneurship.
- Governance, rule of law and institutional reform
Improving the quality of governance, including e-governance, is fundamental to Vietnam's prosperity and stability and requires further institutional reform. EU support notably focuses on:
- Justice and Legal Empowerment: supporting legal empowerment and access to justice since 2014 with the EU JULE programme.