European leaders plan visits to Vietnam to strengthen ties amidst potential U.S. trade tensions. With tariff risks from the U.S., Europe sees an opportunity for increased trade and investment. High-level visits from EU leaders emphasize the shift in focus to Southeast Asia, with specific interests in infrastructure and economic collaboration in Vietnam.
European leaders are planning visits to Vietnam over the coming months to strengthen bilateral ties amid potential trade tensions with the U.S. Former President Joe Biden had worked to enhance U.S.-Vietnam relations, viewing Vietnam as a strategic partner against China. However, if his successor Donald Trump imposes tariffs due to Vietnam’s significant trade surplus, these relationships could deteriorate.
In response to this uncertainty, European officials, including European Commission head Ursula von der Leyen and French President Emmanuel Macron, are scheduled for visits to Vietnam. These trips, which have been in planning and are not yet finalized, aim to solidify trade and investment opportunities with trusted allies. Von der Leyen emphasized the shifting landscape of trade during a recent address to ASEAN leaders.
France’s President Macron is expected to visit Vietnam in late May to strengthen ties following the elevation of diplomatic relations last year. Von der Leyen’s visit may occur earlier, focusing on formalizing upgraded ties. Additionally, EU Trade Commissioner Maros Sefcovic might precede them, visiting in April to foster deeper trade connections.
Vietnam exported $52 billion in goods to the EU last year, which, while less than U.S. imports, indicates a growing trade relationship thanks to an established free trade agreement. If tariffs are imposed by the U.S., local manufacturers dependent on American exports could diminish their workforce, impacting the economy. This may lead to increased exports to the EU, as well as heightened investments from European firms seeking to capitalize on displaced talent.
Moreover, Vietnam is broadening its military supplies and intensifying infrastructure expenditure, including significant railway projects that attract European company interests. With the U.S. foreign aid on pause due to past policy shifts, Belgium is creating a fund aimed at revitalizing areas affected by Agent Orange during the Vietnam War.
European leaders are taking proactive steps to strengthen economic ties with Vietnam amid potential trade challenges posed by U.S. tariffs. The strategic importance of Vietnam is emphasized through planned visits and commitments to mutual investments. As Europe seeks to establish its influence, it appears poised to play a significant role in Vietnam’s future development, particularly in infrastructure and industry.
Original Source: www.hindustantimes.com
