EU and Vietnam To Upgrade Ties, Eye Deeper Cooperation On Critical Minerals, Chips and 'Trusted' 5G — Draft

The European Union and Vietnam are set to formally upgrade diplomatic relations and broaden cooperation across critical minerals, semiconductors and 'trusted' telecommunications, according to an eight-page draft joint statement seen by Reuters. The draft — expected to be signed when European Council President Antonio Costa visits Hanoi — also signals possible transfers of non-sensitive defence technology and greater EU investment in Vietnamese infrastructure.

Critical Minerals and Semiconductors

Vietnam holds sizeable but largely undeveloped reserves of rare earths and gallium, and is an important supplier of tungsten — a metal used in defence and electronics. The draft calls for promoting "trade and investment in goods, services and technologies that support sustainable mining and processing" to help Vietnam develop its processing capacity, which today remains limited by technology gaps.

Semiconductors are highlighted as another priority. Vietnam is already a major hub for chip packaging, testing and assembly, hosting operations from firms such as Intel and Amkor Technology, and has recently begun construction of its first domestic semiconductor production plant. Suppliers to ASML have shifted some production to Vietnam and ASML has reportedly explored expanding its supply-chain presence there.

Trusted 5G, Defence and Infrastructure

The draft emphasises cooperation on "trusted communications infrastructure," citing 5G networks and satellite connectivity. European vendors Ericsson and Nokia are involved in Vietnam's 5G rollout, though smaller construction contracts were awarded last year to Chinese companies including Huawei — a point of Western security concern.

Both sides agreed to strengthen security cooperation and the EU said it would consider transfers of "non-sensitive technology and know-how." EU member states also signalled interest in investing in major Vietnamese infrastructure projects, notably a proposed nationwide high-speed rail network that would be Vietnam's largest-ever infrastructure undertaking.

Geopolitical Context

While non-binding, the draft carries political weight. It reaffirms support for a rules-based international order and for strengthening the World Trade Organization, and it calls for respect for territorial integrity and a "just and sustainable peace in Ukraine." The statement also references exploring deeper maritime-security cooperation and stresses the need for stability in the South China Sea, where Beijing's territorial claims clash with Vietnam's interests.

Next Steps

The statement is scheduled for adoption during President Costa's visit. Upgrading ties would place EU-Vietnam relations at Vietnam's highest diplomatic level, on par with relationships Hanoi maintains with the United States, China and Russia. The EU-Vietnam Free Trade Agreement, in force since 2020, provides an existing foundation for the expanded economic and security cooperation described in the draft.

Note: The draft remains subject to change and carries political rather than legally binding commitments. The European Council and Vietnam's government declined immediate comment.