The official upgrading of relations between Viet Nam and the European Union (EU) to a Comprehensive Strategic Partnership marks a significant development, in which economics, trade, and investment are identified as the central pillars driving the entire bilateral relationship.

In fact, the foundation of this upgrade is not formal political commitments, but rather a growing convergence of economic interests and long-term development strategies between the two sides.

On the trade level, both sides reaffirmed their commitment to fully and effectively implement the Viet Nam-EU Free Trade Agreement (EVFTA), while strengthening dialogue to remove technical barriers and expand market access for each other's goods and services. In the context of increasingly unstable global trade, rising protectionist trends, and increasingly fierce geoeconomic competition, the EVFTA is not just a purely trade agreement but also a strategic tool to help Viet Nam and the EU consolidate a safe, stable, and predictable economic space.

Speaking to a Viet Nam News Agency (VNA) reporter in France, Professor Nguyen Van Phu of the University of Paris Nanterre stated that a key driving force behind Viet Nam-EU economic relations today is the trend of reducing dependence on the US market, particularly from Viet Nam's side. Diversifying trade and investment partners reflects a strategic choice aimed at mitigating risks in the context of potential policy shocks and trade tensions. Conversely, the EU is also proactively expanding its network of economic relations with many partners outside the US, from Asia to the Americas, to ensure supply chain security and maintain the competitiveness of the European economy.

Professor Nguyen Van Phu assessed that, beyond traditional goods trade, bilateral economic cooperation between Viet Nam and the EU is expanding strongly into strategic areas such as energy, raw materials, high technology, semiconductors, artificial intelligence (AI), digital transformation, and supply chain restructuring. The EU clearly demonstrates its role as a partner supporting Viet Nam in modernizing its economy, gradually approaching green, sustainable, and responsible trade standards – factors that are increasingly becoming mandatory conditions for accessing the European market.

The essence of the Viet Nam-EU partnership lies in its complementarity. Viet Nam needs long-term

capital, advanced technology, management expertise, and high standards from Europe, home to many of the world's leading developed economies. Conversely, the EU needs Viet Nam as an attractive investment destination, a dynamic market, and a crucial link in its strategy to diversify supply chains in the Asia-Pacific region. This compatibility forms the foundation for a long-term strategic partnership between the two sides.

However, to fully capitalize on the opportunities arising from the upgraded relationship, Professor Nguyen Van Phu believes that Viet Nam is facing the need for deeper and more consistent institutional reforms. Meeting the EU's high standards is not only a partnership obligation but also reflects the intrinsic needs of the development process. Goods and services exported to Europe must strictly comply with standards on safety, quality, origin, the Carbon Border Adjustment Mechanism (CBAM), as well as standards on labor, gender equality, and sustainable development. Similarly, investment projects in Viet Nam with European capital must also meet high requirements regarding environment, social responsibility, and governance.

In this context, developing a transparent, stable, and internationally standardized financial market is considered a key condition for attracting European capital. The legal framework needs to be clear, stable, and predictable, limiting sudden policy changes. EU investors particularly value the rule of law, mechanisms for protecting property rights, contract enforcement, and independent and effective dispute resolution.

Simultaneously, enhancing transparency and governance standards in the capital market is an unavoidable requirement. Businesses and financial institutions need to comply with international accounting and auditing standards, disclose complete and reliable information, thereby minimizing risks and strengthening confidence among European funds and financial institutions. The trend towards green and sustainable finance – through green bonds, green credit, and instruments linked to environmental, social, and governance criteria – also needs to be strongly promoted, in line with the EU's strategic priorities.

Ultimately, a modern financial market requires synchronized infrastructure, sufficient liquidity, diverse products, and effective risk supervision mechanisms. Ensuring the safety of the banking system and strengthening anti-money laundering and counter-terrorism financing measures in accordance with international standards is not only to meet the requirements of EU partners, but also a condition for Viet Nam's deep and sustainable integration into the global financial system.

Overall, upgrading Viet Nam-EU relations to a Comprehensive Strategic Partnership opens a new phase of cooperation, in which economics, trade, and investment play a central role and driving force. The opportunities are immense, but they come with the demands for serious and long-term reforms. How Viet Nam meets these standards and expectations will determine the true extent of the partnership in the coming years.

Source: Tin Tuc News