Spanish PM’s trip paves way for stronger cooperation with Vietnam

Prime Minister Pham Minh Chinh (right) receives Spanish Ambassador to Vietnam Carmen Cano De Lasala in April 2024. (Photo: VNA)

Spanish Prime Minister Pedro Sanchez’s official visit to Vietnam from April 8 to 10, made at the invitation of his Vietnamese counterpart Pham Minh Chinh, is expected to create great momentum and serve as a launchpad for the two countries to elevate their relations to a new, more practical and effective level.

The trip is the first official visit to Vietnam by a Spanish PM since the countries established their diplomatic ties in 1977, and also the first by a high-ranking leader of the European country in 19 years, since the tour by King Juan Carlos and Queen Sofia in 2006. It demonstrates Spain’s strong commitment to deepening ties with Vietnam and also highlights Vietnam’s growing role and position in the region and the world. It is hoped to pave the way for a more dynamic and robust economic and trade partnership between the two countries in the coming years.

Strategic partnership grows stronger

Relations between Vietnam and Spain date back five centuries, beginning with trade ties when Spanish merchants first arrived at Hoi An Port to establish a thriving commercial presence in the region. The two countries officially established diplomatic relations on May 23, 1977.

Over the past 48 years, Vietnam and Spain have steadily expanded their friendship and cooperation across multiple fields. Bilateral ties has grew even stronger and more comprehensive since the establishment of the "strategic partnership towards the future" during President Nguyen Minh Triet’s visit to Spain in December 2009. Notably, Spain was the first EU country to become a strategic partner of Vietnam.

In recent years, the two sides have built up a close relationship and extensive cooperation based on mutual trust and understanding, fostered through regular mutual visits and cooperation at all levels.

Most recently, PM Chinh met with his Spanish counterpart Sanchez on the sidelines of the G20 Summit in Rio de Janeiro, Brazil, in November 2024, during which the former affirmed that Vietnam always attaches importance to and wishes to further intensify the strategic partnership with Spain. He proposed increasing delegation exchanges at all levels, expediting the signing of a new joint action programme for the new period between the two governments, and boosting collaboration in transport infrastructure, renewable energy, science and technology, and agriculture.

PM Sanchez agreed with Chinh’s proposals and suggested enhancing cooperation in developing infrastructure, particularly metro systems, urban railways, and city planning. He also proposed practical activities be held to celebrate the 50th founding anniversary of diplomatic ties in 2027.

The two countries currently maintain the political consultation at the deputy foreign minister level, as well as a joint committee on economic, trade, and investment cooperation chaired by the Vietnamese Ministry of Industry and Trade.

The two sides have also cooperated closely and supported each other at multilateral mechanisms, especially the UN and the ASEAN–EU relations.

Bright prospects for economic and trade cooperation

The first solar power plant in Con Dao (Ba Ria-Vung Tau province) under a project to promote solar power development in Vietnam worth 140,000 EUR out of 1 million EUR in non-refundable aid from the Spanish Government. (Photo: VNA)

Since the establishment of the strategic partnership, economic and trade links have seen strong growth. Spain is currently Vietnam’s fifth-largest trading partner in the EU while Vietnam is Spain’s biggest in ASEAN. From 2019 to 2024, bilateral trade maintained solid growth, averaging 8.7% annually.

In 2024, the two-way trade hit a record of 4.72 billion USD, marking a 20% increase compared to 2023. The two countries' import-export structures are largely complementary to rather than directly compete with each other.

The countries have effectively implemented the EU – Vietnam Free Trade Agreement (EVFTA), which took effect in August 2020. Spain was also among the first EU countries to ratify the EU – Vietnam Investment Protection Agreement (EVIPA), in January 2022, which Vietnamese Ambassador to Spain Doan Thanh Song described as a demonstration of Spain’s growing interest in Vietnam as a promising market for Spanish businesses. The recent opening of the Spanish Chamber of Commerce in Hanoi is also a vivid example of the European nation's determination to strengthen economic relations with Vietnam.

As of January 2025, Spain had 97 investment projects worth 143.9 million USD in Vietnam, ranking 46th out of the 149 countries and territories investing in the Southeast Asian nation. Its investments are concentrated in the manufacturing and processing industry (56.1%) and accommodation and food services (32.8%). Ambasador Song said that notable recent Spanish investments focus on renewable energy and digitalisation, which are all priority sectors Vietnam is attracting high-tech foreign direct investment (FDI) to.

Meanwhile, Vietnam had invested 64.2 million USD in three projects in Spain, operating in the fields of science - technology research and processing - manufacturing. That gave Spain the 24th place among the 79 overseas investment destinations of Vietnam.

Regarding development cooperation, Vietnam has continually been one of the priorities in Spain's development cooperation policy. To date, the European nation has pledged over 1 billion USD in ODA loans and non-refundable aid for Vietnam through six cooperation programmes to support poverty reduction, gender equality, health care, and clean water supply, contributing significantly to local socio-economic development.

According to Ambassador Song, there remains huge room for the two countries to boost all-around cooperation in the coming time, from economics, renewable energy development, agriculture, education - training, culture, sports, and tourism, to people-to-people exchanges.

Strengthening Vietnam – Spain strategic partnership

The diplomat noted Vietnam and Spain are currently at the stage of sharing the most common interests to date, creating a strong stepping stone for further deepening their strategic partnership. Both sides are actively seeking to expand and diversify their markets and partners. Spain holds a strategic position and influence not only in Europe, but also in Spanish-speaking countries, Latin America, and North Africa. Strengthening ties with Spain will thus help Vietnam broaden its cooperation and enhance its role and reputation in these regions.

PM Sanchez’s official visit to Vietnam holds great significance as it reflects Spain’s determination to enhance cooperation with Vietnam, Song said, adding that by bringing along a delegation of Spain’s leading corporations to Vietnam during the visit, the Spanish side demonstrates a concrete step toward expanding economic engagement between the two countries.

During the visit, the two sides are scheduled to discuss measures for bolstering cooperation, enhancing political trust, reinforcing the existing foundation of relations, and exploring new opportunities in potential areas, especially politics - diplomacy, trade - investment, science - technology, infrastructure, urban transport, sustainable development, and renewable energy. Several bilateral cooperation agreements are also expected to be inked on this occasion.

Ahead of his visit, PM Sanchez stressed that Vietnam has become a magnet for foreign investment, and affirmed that thanks to the EVFTA, Spanish companies, especially those operating in infrastructure and renewable energy, will be able to seize business opportunities in Vietnam./.