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The international community continues to witness a volatile and changing landscape during 2022. The European Union (EU) has been making efforts to promote digital and green transformations not only within the Union but also in developing countries and regions in Southeast Asia and Africa.
In particular, the Association of Southeast Asian Nations (ASEAN), a strategic partner of the EU since 2020, has been emerging as a dynamic economic bloc in the Indo-Pacific region.
The cooperation between the EU and the ASEAN is expected to somewhat repair the international supply chains problems, rebooting the globalisation process that has been declining since the Covid-19 pandemic and the on-going war in Ukraine. EU regional partners, such as Vietnam have great potential to promote stronger and more effective cooperative relations for the benefit of their respective regions and citizens.
Prime Minister Pham Minh Chinh introduced the initiative at an ASEAN conference
From regional economic cooperation to global challenges
In its relations with the ASEAN, the EU has demonstrated its role as a reliable development partner, striving towards the ambitious goal of contributing to peace, stability, and prosperity of the two regions and globally. In this process, Vietnam has emerged as a strong partner in addressing emerging global and regional challenges. While many countries face difficulties and potential recession risks, Vietnam's economic growth continues to recover positively with GDP.
The International Monetary Fund (IMF) forecasts that Vietnam's GDP will grow by about 7.5% in 2022. Inflation in Vietnam is controlled with the average rate for the whole year forecasted at only 3.8%. Vietnam is the only country in the Asia-Pacific region and one of four countries in the world that has its credit rating upgraded by Moody's. With its business and investment environment continuously improving, Vietnam is increasingly gaining stronger trust amongst foreign investors and in the international financial markets. In the first 9 months of 2022, foreign direct investment (FDI) capital in Vietnam was estimated at 15.4 billion USD, up 16.3% over the same period last year.
The Vietnamese government has particularly advocated to improve the quality and efficiency of FDI capital to the country, prioritizing environment-friendly projects with advanced technology. This development has opened up new cooperation opportunities for joint EU and Vietnam enterprises. With many similarities in political wills and strategic interests, Vietnam and EU member states have the potential to promote stronger and more effective cooperation.
During the UN Secretary-General’s, António Guterres, visit to Vietnam last October, the UN chief made a valid remark: “From a country devastated by war and isolated in the international arena a few decades ago, Vietnam today is one of the most dynamic developing economies in the world, with many achievements in ensuring and improving citizens' living standards in all aspects.”
Vietnamese female peacekeepers in Africa
Not only taking care of the livelihood of its citizens, Vietnam also participates in many UN programs and has become an active member of the international community. Among others, Vietnam sent military and police forces to UN peacekeeping operations in 2014 and, most recently, last October in South Sudan and Central Africa. During its time as a non-permanent member of the UN Security Council in the 2020-2021 tenure, Vietnam was appreciated for its adoption of the Presidential Statement on the UN Charter, reaffirming its commitment to multilateralism. In the region, Vietnam has demonstrated its active role by promoting cohesion and effectively dealing with common challenges of ASEAN.
Global challenges, including climate change, pollution, and environmental degradation, are also of major concerns to Vietnam. Energy security has become a global issue, forcing many countries to adjust their use of fossil energy and reduce GHG emissions. Vietnam strives to become an active member of the Just Energy Transition Partnership (JETP) framework, launched by the G-7 group by remaining committed to become carbon neutral by 2050, phase out coal by 2040, end deforestation, and reduce methane emissions by 2030.
Furthermore, in October this year, Vietnam was elected to the UN Human Rights Council for the term 2023-2025. It shows Vietnam's commitment to promoting and protecting human rights. With the new role, Vietnam will have the opportunity to contribute to the promotion of human rights in the world based on cooperation and dialogue.
Vietnam’s relations with the EU
The relationship between Vietnam and the EU is currently considered to be at its prime in history. From an aid recipient, Vietnam has now become an equal and mutually beneficial partner. Currently, Vietnam and the EU have close ties with many cooperative frameworks, such as the EU – Vietnam Free Trade Agreement (EVFTA), which took effect on August 1, 2020.
The EU is Vietnam's leading trading partner with the former being the third largest export market and the fifth largest import market of Vietnam. The total bilateral import-export turnover between Vietnam and the EU reached more than 57 billion euros in the first nine months of 2022, up 10.3% over the same period in 2021. The EU is also the fifth largest foreign investor in Vietnam with a total registered capital of 27.6 billion USD (by August 2022). Only in the first eight months of 2022, total investment capital of the EU in Vietnam reached 2.2 billion USD, up with 70% over the same period in 2021.
Relations with Belgium and Luxembourg
Within the EU, Belgium and Luxembourg are countries with increasingly close cooperation with Vietnam. In 2023, Vietnam will celebrate the 50th anniversary of the establishment of diplomatic relations with Belgium and Luxembourg.
In 2021, two-way trade between Vietnam and Belgium reached a record of 3.6 billion euros, a figure which already has been surpassed this year. In the first nine months of 2022 trade reached 3.7 billion euros, up 25% over the same period last year. Notably, the accumulated investment capital of Belgian enterprises accounted for half of the total FDI from the EU or 1.1 billion USD in the first 8 months of the year.
Vietnam continues to welcome Belgian and other businesses to invest and cooperate in fields such as water resource management, irrigation, public policy, education, agriculture, rural development, health care and the environment. Many programs have been implemented effectively pursuant to the capacity of localities in Vietnam and, thus, positively contributing to economic development, poverty reduction, and capacity building in localities and areas receiving development projects. For its part, Luxembourg has 57 projects with a total registered capital of 6.38 million USD.
Cultural exchanges among the citizens continue to be promoted. The Vietnamese community in Belgium, and Luxembourg, of which approximately 60% are high-skilled workers, has become a sustainable bridge between the three countries through cultural activities, such as food fairs, performing arts and concerts. Vietnamese citizens in Belgium and Luxembourg are integrating well and contributing to the prosperity of the local communities.
Vietnam Prime Minister Pham Minh Chinh received Minister-President of the Government of the Federation Wallonia-Brussels in Vietnam
Within the framework of the upcoming conference to celebrate the 45th anniversary of the establishment of EU-ASEAN relations, Prime Minister Pham Minh Chinh will visit Belgium and Luxembourg in mid-December. This is an opportunity for the three countries to further promote cooperation in various fields.
