EU, Vietnam Move Toward Cooperation Deal on Critical Minerals, Chips

The European Union and Vietnam are set to sign a joint statement on Thursday aimed at expanding cooperation in critical minerals, semiconductors, and trusted telecommunications infrastructure, according to a draft document seen by Reuters.

The move comes as part of a broader effort to strengthen diplomatic ties between Brussels and Hanoi, with both sides expected to elevate their relationship to the highest diplomatic level, on par with Vietnam’s relations with the United States, China, and Russia.

The agreement follows the recent reappointment of To Lam as Vietnam’s top leader of the ruling Communist Party and builds on growing trade and investment links since the EU–Vietnam Free Trade Agreement entered into force in 2020.

Vietnam holds significant but underdeveloped reserves of rare earth elements and gallium, as well as being a major supplier of tungsten, a metal widely used in defense and electronics manufacturing.

The joint statement emphasizes boosting investment in the sustainable mining and processing of critical minerals, positioning the partnership as part of a wider effort to diversify supply chains away from China’s dominance in global mineral markets.

Semiconductors are identified as another core area of cooperation, encompassing supply chains, manufacturing, and advanced technologies. Vietnam already hosts chip assembly, testing, and packaging operations for global firms such as Intel and Amkor Technology, and has recently begun developing its first domestic semiconductor manufacturing facility.

The agreement also highlights cooperation on trusted telecommunications infrastructure, including 5G networks and satellite communications.

European companies such as Nokia and Ericsson are playing a central role in developing Vietnam’s 5G network, while Chinese firms have secured smaller construction-related contracts, despite ongoing Western concerns over cybersecurity risks.

Beyond technology, the joint statement outlines EU interest in non-sensitive technology transfers, enhanced security cooperation, and increased investment in major infrastructure projects. These include Vietnam’s ambitious plan to build a nationwide high-speed rail network, expected to be the largest infrastructure project in the country’s history.

The document also carries clear political messaging, reaffirming support for a rules-based international order, respect for state sovereignty, and backing for a sustainable peace in Ukraine.

In the Indo-Pacific, the EU and Vietnam underscored the importance of stability in the South China Sea, where Vietnam faces overlapping territorial claims with China that remain a source of regional tension.

Taken together, the planned agreement reflects Europe’s growing strategic engagement in Southeast Asia, as it seeks to secure supply chains, strengthen technological partnerships, and deepen geopolitical ties in an increasingly fragmented global landscape.