Bangkok – Fearing American reprisal prices, Vietnam turns to Europe, organizing a succession of senior personalities in the next two months.
On Tuesday, President Luong Cuong met the Belgian monarch, King Philippe, and a commercial delegation, encouraging them to invest in key industries such as high -tech manufacturing, renewable energies and infrastructure, the state media reported. Philippe said that he hoped that Belgian companies specialize in the treatment of wastewater, rare energy and minerals would settle in Vietnam.
Cuong also asked Belgium to ratify the EU-Vietnam investment protection agreement, signed six years ago, but still not in force because it was not ratified by a third of the members of the EU.
Two other European delegations are coming next week. The EU trade commissioner, Maros Sefcovic, should be in Hanoi on April 11, before a planned visit to the president of the European Commission Ursula von der Leyen in May. The Spanish Prime Minister Pedro Sanchez must be put in Vietnam from April 8 to 12.
Spain was the first EU country to raise its relationship with Vietnam to a so-called strategic partnership, in 2009, according to Carl Thayer, professor emeritus at the University of South Wales in Australia.
“Sanchez is expected to explore new commercial opportunities and investment in renewable energy and infrastructure,” he said in a recent briefing.
Vietnam is eager to found Airbus, the member of Spain, to encourage the aircraft manufacturer to invest more in the production of Vietnamese components, the construction of maintenance facilities and the development of the supply chain, he said.
Liberation day prices
Vietnam’s growing encouragement to do business with Europe is involved in the prospect of higher American tariffs in retaliation for the excess of Vietnam record trade with the United States.
Hanoi reduced import rights on Tuesday on a range of American products to try to ward off the “Liberation Day” prices of President Donald Trump. He also sends the Vice-Prime Minister Ho Duc Phoc in Washington and New York with a commercial delegation to argue the case of Vietnam, according to Bloomberg, which cited people familiar with the plan.
Trump promised to announce new prices on Wednesday against an unpertured number of countries on Wednesday.
However, Vietnam is also being prepared at a higher potential cost of export to the United States, looking towards a block where it has a free trade agreement.
Since an EU-Vietnam free trade agreement entered into force in 2020, two-way trade increased by almost 48% to $ 68.4 billion last year.
And the two parties perhaps seek to go further in this relationship when Ursula von der Leyen meets Prime Minister Pham Minh Chinh next month, according to Carl Thayer. He said the EU and Vietnam are likely to raise relations with a complete strategic partnership, putting it at a level with the United States and China.
The increase in trade may include the resumption of exports of Vietnamese seafood if Europe decides that Hanoi has progressed in the end of illegal, unsuccessful and unregulated fishing. For its part, the EU could have access to rare land and other important minerals for the manufacture of products such as electric vehicles.
If President Trump becomes more difficult with prices, Thayer sees a “silver lining” for both sides.
“If Trump imposes additional prices in Vietnam and the EU on April 2, Trump prices are likely to force American manufacturers in Vietnam to dismiss their workers due to a drop in exports to the United States,” he said.
“This will open up opportunities for an increase in exchanges between Vietnam and EU and EU investment in Vietnam where labor costs are relatively low.”
Published by Stephen Wright and Tajun Kang.