The European Union (EU) Ambassador to Viet Nam, Julien Guerrier, expressed confidence that the robust reforms undertaken by the Government of Viet Nam will continue to reinforce the country’s appeal to foreign investors.

Speaking with the reporter of the Government News Portal on Viet Nam’s achievements during the 2021–2026 period, Ambassador Julien Guerrier conveyed his optimism about the country’s development prospects on the occasion of the 35th anniversary of the establishment of diplomatic relations between the EU and Viet Nam (28 November 1990 – 28 November 2025).

A Strongly Advancing Partnership

Over the past decades, the Viet Nam–EU partnership has expanded significantly across a wide range of sectors. Could you highlight some of the most notable achievements in this bilateral relationship?

Ambassador Julien Guerrier: Diplomatic relations were established in 1990—marking the official beginning of a partnership that has continuously grown since then. Today, we can confidently affirm that this is a truly meaningful relationship, which has advanced remarkably—at the bilateral, regional, and even global levels—not only in economic cooperation but increasingly in political collaboration.

In the early stages, our cooperation centred on joint humanitarian programmes, supporting the resettlement of more than 100,000 Vietnamese boat refugees.

Three and a half decades later, our cooperation has expanded to numerous domains, including trade, environment, energy, science and technology, governance, cultural exchanges, migration, anti-corruption, and combatting organised crime, as well as peace and security.

Viet Nam has become an increasingly important partner of the European Union, sharing a strong commitment to multilateralism and a rules-based international order. In 2016, the two sides signed the Comprehensive Partnership and Cooperation Agreement (PCA), which has served as the foundation of bilateral relations since then.

The most evident milestone in our shared progress is the EU–Viet Nam Free Trade Agreement (EVFTA)—the EU’s first FTA with a developing country. Since its entry into force in 2020, bilateral trade has increased by around 40%, elevating economic relations to an unprecedented level.

On development cooperation, the EU currently manages a grant portfolio of nearly EUR 300 million, with around EUR 160 million in preparation. Our priorities include sustainable green growth, decent work, and responsible business conduct, as well as good governance.

The EU’s largest current programme in Viet Nam focuses on supporting the country’s energy transition, providing technical assistance to Government agencies with a total budget of EUR 142 million. This reflects our shared commitment to sustainable development, the rule of law, and human rights.

In 2019, the two sides signed the Framework Participation Agreement (FPA), enabling Viet Nam to join EU-led missions and operations. This was the first such agreement the EU signed with an ASEAN country, marking a significant step in our joint contribution to global peace and security.

Looking back at these achievements, it is clear that all progress has stemmed from the dedication of both sides to deepen the partnership — along with mutual understanding that strengthening our cooperation serves the best interests of both the European Union and Viet Nam, Ambassador Julien Guerrier emphasised.

The EVFTA: A Milestone in Bilateral Relations

The EU–Viet Nam Free Trade Agreement (EVFTA) represents a major milestone, and 2025 marks the fifth anniversary of its enforcement. Could you share some of the positive outcomes the EVFTA has delivered since taking effect?

Ambassador Julien Guerrier: The EVFTA came into force at a pivotal moment—when Viet Nam needed trade liberalisation more than ever. The agreement was implemented only a few months before the COVID-19 pandemic significantly impacted the global economy and Viet Nam. While global demand declined, the EVFTA served as a “cushion” that helped Viet Nam mitigate negative effects. Viet Nam’s exports continued to record double-digit growth, even as global exports dropped sharply. In 2021, when most economies faced difficulties, Viet Nam still achieved an export growth rate of 5.1%, and this positive momentum has continued over the past five years, averaging over 10% annually.

For the EU, implementation of the agreement has also brought positive—though more modest—growth, around 5% per year. From the EU’s perspective, there remains room for improvement, particularly if we ensure full and effective implementation of the EVFTA. This will help the agreement serve as a solid foundation for future EU–Viet Nam cooperation in new areas of shared interest. Viet Nam’s ambitions in economic growth, human-resource development, technological upgrading, and its desire to attract more foreign investors, including from the EU, all require such cooperation.

Since the EVFTA took effect, investment and technology flows from the EU to Viet Nam have increased to more than EUR 30 billion, compared with EUR 22 billion previously.

In today’s uncertain global environment, the EVFTA is a clear demonstration of our shared commitment to free, fair, and rules-based trade. Overall, the agreement has become a model for other FTAs that the EU is negotiating or plans to negotiate.

Challenges in EVFTA Implementation

While the EVFTA has opened many new opportunities, it has also created challenges for Vietnamese businesses. What are these challenges, and what steps should the Government of Viet Nam take to maximise the benefits of the agreement?

Ambassador Julien Guerrier: The EVFTA sets out specific technical requirements for both parties. For example, the rules of origin require exporters in Viet Nam to follow particular procedures. The preference utilisation rate of the EVFTA by Viet Nam currently stands at 84.4%. However, we understand that many related procedures are still carried out on paper rather than being fully digitalised. Therefore, there remains room to reduce costs and simplify processes for Vietnamese exporters—especially small and medium-sized enterprises. There is also potential for enhanced customs cooperation in the future.

Compliance with labour and environmental commitments under the EVFTA is also essential, as these requirements are standard across the EU and other major markets. For Viet Nam, early adoption and compliance will provide a first-mover advantage. The EU continues to support Viet Nam in raising awareness and building compliance capacity. Incorporating fundamental labour rights into business operations will also bring tangible economic benefits, contributing to improved productivity and business performance.

Towards Upgrading the Comprehensive Strategic Partnership

Looking ahead, could you share the EU’s strategic orientation for its partnership with Viet Nam?

Ambassador Julien Guerrier: Building on a robust and mutually beneficial relationship, the EU and Viet Nam are well-positioned to explore new opportunities for cooperation. Today’s global context is favourable for elevating the partnership, particularly in trade, innovation, and sustainable growth.

Therefore, the EU is working closely with Viet Nam to upgrade bilateral relations to a Comprehensive Strategic Partnership. This will be a significant milestone, reflecting the depth and maturity of our relationship.

Going forward, we see substantial potential to further strengthen cooperation in the green transition and other priority areas that support sustainable development. The EU also aims to advance cooperation in research, science and technology, digital transformation, connectivity, and the semiconductor sector—all of which are essential pillars for the future.

In the current environment of global volatility, strengthening cooperation in security and defense—including maritime security, cyber security, and crisis management—is particularly important. By deepening collaboration in these strategic areas, the EU and Viet Nam can continue contributing to peace, stability, and prosperity in the region and globally.

Development Cooperation Priorities in the Coming Years

In the coming years, what areas will the EU prioritise in its development cooperation with Viet Nam?

Ambassador Julien Guerrier: In the years ahead, development cooperation between the EU and Viet Nam will focus on translating the EU’s Global Gateway Strategy into concrete action—supporting the green and digital transitions, sustainable development, and innovation through science, technology, and skills development.

A central priority during this period is the Just Energy Transition Partnership (JETP), through which the EU will continue mobilising investment and technical expertise to support Viet Nam’s transition to a low-carbon economy, strengthen climate resilience, and achieve its net-zero target by 2050.

The EU is also engaged in the transport sector through large-scale blended-finance mechanisms, combining EU grants with concessional loans from European Development Banks to promote decarbonisation and enhance sustainable connectivity.

All these efforts are undertaken under the “Team Europe” approach, bringing together the strengths of the EU and its Member States to deliver effective, comprehensive, and inclusive cooperation aligned with Viet Nam’s long-term development vision.

Recommendations for Sustaining Growth and Achieving a High-Income, Green and Digital Economy

What are the EU’s recommendations to help Viet Nam maintain economic growth and meet its goal of becoming a high-income country with a green, sustainable, and digitalised economy?

Ambassador Julien Guerrier: The European Union fully supports Viet Nam’s aspiration to build a green, sustainable, and digital economy. Through the JETP, the EU and Viet Nam are working together to advance renewable energy, energy efficiency, and sustainable growth, contributing to a fair, inclusive, and environmentally responsible energy transition.

Under the Global Gateway Strategy, the EU also seeks to mobilise high-quality investment and private-sector resources to enhance sustainable infrastructure, transport, connectivity, and innovation—all essential to sustaining inclusive growth and economic resilience.

Moreover, investment in digital transformation and skills development will be crucial to ensuring that Viet Nam’s economic transitions are future-ready, competitive, and aligned with global sustainable development goals. A digitally skilled workforce and an innovation-driven economy will help Viet Nam integrate more deeply into global value chains and realise its ambition of becoming a high-income country.

To sustain economic growth, strong trade and investment cooperation is indispensable. Viet Nam can achieve this by making more effective use of EVFTA preferences and ensuring full and efficient implementation of bilateral commitments. At the same time, it is essential to create more timely, transparent, and investor-friendly conditions. EuroCham Viet Nam has provided many useful recommendations in this regard, and the EU business community, EU Member States, and the European Union as a whole stand ready to support Viet Nam throughout this promising journey.

From an investment perspective, policies must be stable, consistent, and reliable. Viet Nam should aim to become a more attractive destination for high-value, technologically advanced products and services. The EU is a trusted, safe, and experienced partner, offering capital, technology, and expertise in areas crucial for Viet Nam. Attracting these resources requires sincerity, strategic vision, and concrete actions.

Strategically, ongoing discussions to elevate relations to a Comprehensive Strategic Partnership will generate strong momentum to further deepen cooperation, bringing tangible benefits to both sides.

Government Reforms Enhance Viet Nam’s Position and Appeal

Lastly, could you share your assessment of Viet Nam’s development achievements during the current Government’s term?

Ambassador Julien Guerrier: The Government of Viet Nam has implemented a comprehensive modernisation effort, including restructuring State agencies, merging certain provinces, and issuing several new regulations in the digital and energy sectors.

We believe these reforms will continue to strengthen Viet Nam’s attractiveness to foreign investors.

Viet Nam is also investing heavily in energy, transport, and digital infrastructure—essential elements for sustaining the country’s current pace of economic growth.

Through the Global Gateway Initiative, the European Union stands ready to support Viet Nam in developing sustainable, reliable, and high-quality infrastructure while building capacity and sharing expertise to help establish an international-standard legal framework that fosters investor confidence.

The EU business community is also playing an important role in Viet Nam’s economic development, as well as in promoting trade and the adoption of new technologies—clearly demonstrated by the upcoming Green Economy Forum to be held in Ha Noi on 27 November this year.

Thank you very much, Ambassador.

Source: Government News