Vietnam, EU deepen cooperation on investment, tax transparency and green finance

Minister Tuan reaffirmed that Vietnam values its strategic relationship with the European Union. In particular, following the entry into force of the EU-Vietnam Free Trade Agreement on August 1, 2020 and the elevation of bilateral ties to a Comprehensive Strategic Partnership in January 2026, economic, trade and investment cooperation has entered a new phase with significant growth potential.

The minister stressed that Vietnam’s MoF remained ready to engage in dialogue “anytime, anywhere” to promptly address concerns and create the most favourable environment for European investors.

Ambassador Julien Guerrier shared this view, praising the MoF’s central role in managing macroeconomic policy, taxation, customs and development resources. He reaffirmed the EU’s commitment to working even more closely with Vietnam to advance the strategic objectives of both sides.

He added that the EU currently provides approximately €450 million ($522 million) in direct funding to Vietnam. Combined with financing mobilised from EU member states, the bloc remains one of Vietnam’s leading partners under the Just Energy Transition Partnership.

Amid geopolitical challenges that have constrained access to fossil fuels, the ambassador encouraged Vietnam to maximise its abundant renewable energy resources, including wind, solar and hydropower. He also highlighted the European Investment Bank’s significant investments in sustainable transport infrastructure and port development projects in Vietnam.

The ambassador noted that more than $300 billion worth of green bonds were issued in major financial centres over the past year, describing green finance as a key source of capital for Vietnam’s future development.

Minister Tuan expressed his hope that the EU would continue providing technical assistance to help Vietnamese businesses gain greater access to and familiarity with these preferential financing instruments.

The discussions also covered some technical issues relating to taxation and customs procedures.

Minister Tuan reaffirmed that Vietnam is not a “tax haven” and remains committed to complying with international transparency standards. He cited Prime Ministerial Decision No.948/QD-TTg, issued on May 27, approving the National Action Plan on the Exchange of Information for Tax Purposes, as evidence of the government’s commitment.

The MoF is currently working closely with the Organisation for Economic Co-operation and Development and the Global Forum to further strengthen the legal framework. The minister called on the EU Delegation to recognise Vietnam’s substantive efforts and support the country’s removal from the relevant monitoring list during the review scheduled for October 2026.

Ambassador Guerrier confirmed that the EU is actively providing technical assistance through the Global Forum to help Vietnam achieve a positive assessment and avoid adverse impacts on its investment reputation.

Addressing the EU Ambassador’s letter on the draft Special Consumption Tax on alcoholic beverages, Ambassador Guerrier clarified that the EU supported Vietnam’s public health objectives but hoped that tax policies were designed without discriminating against European businesses.

Photo: Duc Minh

Minister Tuan noted that the roadmap for increasing the special consumption tax rates from 2026 had already been clearly outlined in the 2025 law on the special consumption tax to curb harmful consumption. At the same time, he reaffirmed Vietnam’s commitment to equal treatment of domestic and foreign investors and expressed the country’s willingness to learn from the EU’s regulatory experience.

Recognising that the bilateral Customs Committee mechanism had not operated as actively as expected during the first half of 2026, both sides agreed to strengthen commitments and direct relevant agencies to enhance cooperation to facilitate trade flows as new free trade agreements continue to be implemented.

To better protect and engage high-quality European investment into high technology, digital transformation, 5G and energy sectors, both sides agreed that the early ratification of the EU-Vietnam Investment Protection Agreement remained crucial.

Minister Tuan called on Ambassador Guerrier to encourage the remaining six of the EU’s 27 member states to complete the ratification process. The Ambassador confirmed that he would engage directly with those countries in the coming weeks to accelerate progress.

After the meeting, the two sides agreed on a series of concrete action plans to be implemented before the end of 2026. The Ambassador said the EU Delegation would continue working closely with Vietnam’s Tax Department to resolve outstanding technical issues and would cooperate with the National Innovation Centre on plans to establish a Vietnam-Europe Innovation Centre.

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