EU and Vietnam deepen economic partnership – opportunities for SMEs

Strategic realignment of cooperation

The European Union and Vietnam intend to significantly deepen their economic relations. Against the backdrop of global trade conflicts and geopolitical shifts, the focus is increasingly on critical raw materials, semiconductors, digital infrastructure and transport infrastructure.

The basis for this is the draft of a joint declaration that is to be signed during a high-level EU visit to Hanoi. This will further increase Vietnam’s importance as a partner of the EU in Southeast Asia – and thus also for German mid-sized companies with international operations.

Critical raw materials: Security of supply in focus

Vietnam has significant deposits of rare earths, gallium and tungsten, which are crucial for numerous industrial applications in Europe.

The EU and Vietnam are planning:

• investments in sustainable mining,
• the expansion of local processing and refining capacities,
• diversification of supply chains.

For internationally oriented mid-sized companies, this opens up new options in strategically important value chains.

Semiconductors: Vietnam strengthens its role in global supply chains

Vietnam is already an established location for semiconductor packaging and testing. In early 2026, construction of the country’s first semiconductor fabrication plant began.

For European companies, this means:

• Vietnam will be more strongly integrated into global semiconductor supply chains.
• The EU is examining the transfer of non-sensitive technology and technical know-how.
• Cooperation along the semiconductor value chain is to be expanded.

For mid-sized companies seeking to diversify their international business, this creates additional sourcing and cooperation opportunities.

Infrastructure: 5G and high-speed transport

Another focus of the cooperation is the development of a reliable digital infrastructure, in particular:

• 5G networks,
• satellite communications.

At the same time, Vietnam is planning substantial investments in transport infrastructure, including a nationwide high-speed rail network. EU member states have signalled their interest in taking part in financing and implementation.

This creates additional opportunities in international project business, for example in:

• transport and logistics,
• rail technology and mobility,
• digitalisation of infrastructure.

Assessment for mid-sized companies

The intensification of economic relations between the EU and Vietnam is part of a strategic diversification of European economic and industrial policy. For German mid-sized companies, this means:

Vietnam is developing into a relevant partner for raw materials, technology and infrastructure. New opportunities are emerging in international business, both on the procurement and the sales side. At the same time, market, country and currency risks need to be carefully monitored.

LBBW supports its corporate clients with international market expertise and financing know-how in the implementation of cross-border projects.

FAQ: EU and Vietnam expand economic relations – LBBW’s role

Why are the economic relations between the EU and Vietnam important?

Vietnam is becoming an increasingly important partner for Europe in critical raw materials, semiconductors, 5G and infrastructure projects – particularly for diversifying global supply chains.

What opportunities arise for companies?

Companies benefit from new sourcing options (including rare earths), a growing semiconductor location and extensive infrastructure and digitalisation projects in Vietnam.

What role does LBBW play?

LBBW supports companies with trade and export finance, investment and project finance as well as risk management for projects related to Vietnam and Southeast Asia.

How do Hanoi and Singapore work together?

The Hanoi representative office is the local point of contact in Vietnam, while the Singapore branch acts as the Regional Hub for Asia-Pacific and provides broad product and structuring expertise for the entire region.