News Oct 28 25

EU–Vietnam Trade Partnership Deepens: A Strong Signal for Sustainable Industrial Growth

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During the recent ASEAN Summit, European Council President António Costa expressed the European Union’s intention to strengthen cooperation with Vietnam across multiple sectors, notably trade, investment, green transition, and digital transformation. The statement reflects Europe’s recognition of Vietnam’s rapid economic growth and its increasing role as a reliable partner in global supply chains.

According to Vietnam’s Ministry of Planning and Investment, European Union investors currently operate about 2,450 projects in Vietnam, with a total registered capital exceeding USD 30.6 billion. Major contributors include the Netherlands, France, Luxembourg, and Germany, which together account for more than USD 20 billion. This long-term investment pattern highlights Europe’s confidence in Vietnam’s stable business environment and expanding industrial base.

In the first half of 2025 alone, two-way trade reached nearly USD 36 billion, marking a 10 % increase in Vietnam’s exports and a 6.4 % rise in imports from the EU. The result is a USD 19 billion trade surplus, underscoring Vietnam’s continued role as one of the EU’s key export manufacturing partners in Asia.

TRADE
Source: Freepik

Policy Priorities: From Investment Protection to Sustainability

Vietnam has proposed a series of initiatives to further strengthen this partnership, including the ratification of the EU–Vietnam Investment Protection Agreement (EVIPA) and closer collaboration on high-technology and green infrastructure projects.
Once ratified, EVIPA will give European investors stronger legal protections, creating a more predictable framework for long-term manufacturing and industrial investment.

The EU’s priorities also align closely with Vietnam’s National Green Growth Strategy, focusing on clean energy, circular production, and digital transformation. As both sides expand cooperation in these areas, the opportunities for sustainable manufacturing and high-specification industrial development will increase significantly.

EVIPA
Source: Freepik

Industrial Real Estate: Preparing for High-Standard European Investment

For the industrial real estate sector, the deepening EU–Vietnam partnership signals rising demand for premium quality facilities that meet European ESG standards. European firms typically seek industrial environments that integrate energy-efficient design, smart technology, and renewable energy capabilities.

Developers like Core5 Vietnam, which focuses on LEED-certified, energy-efficient, ready-built factories and warehouses, are already positioned to serve this evolving demand.
Core5 Vietnam’s developments in Hai Phong and Quang Ninh, key logistics and export corridors, are strategically aligned with the needs of European manufacturers seeking to establish operations close to seaports and key transport networks.

As Vietnam continues to attract investment in green manufacturing, clean technology, and digital infrastructure, developers who can deliver sustainable, compliant, and flexible facilities will play a crucial role in enabling these projects.

Trade Expansion Drives Logistics and Supply Chain Upgrades

With export growth of nearly 10 % to the EU in early 2025, Vietnam’s logistics and industrial supply chains are under increasing pressure to modernize.
European logistics providers, especially those from the Netherlands and Germany, are expected to expand in Vietnam through joint ventures and third-party logistics (3PL) partnerships. This trend will create further demand for modern logistics hubs, bonded warehouses, and multi-modal industrial parks that support end-to-end European supply chains.

For developers, this represents an opportunity to design and deliver logistics-ready infrastructure equipped with digital management systems, temperature-controlled storage, and renewable energy integration, features increasingly required by European clients.

Sustainability and Compliance: The Next Frontier

Vietnam has also requested European Union support in lifting the IUU “yellow card” on its seafood exports, which restricts access to the European market.
This effort highlights how compliance with international sustainability and traceability standards is becoming central to trade relations, not just in seafood but across manufacturing, packaging, and supply chain management.

In this context, industrial zones designed with environmental management systems, wastewater treatment, and carbon reduction goals will be more attractive to European investors seeking to align with EU Green Deal objectives.

Developers adopting these principles will help Vietnam maintain its competitive edge as a responsible, globally integrated production base.

    Source: Core5 Vietnam

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