By Francesco Guarascio
HANOI (Reuters) – European leaders are planning visits to Vietnam in coming months to strengthen ties with the Southeast Asian nation, officers stated, amid tensions with Washington that would affect their exports to america.
Former U.S. President Joe Biden pushed laborious to spice up U.S. affect within the former foe, contemplating the nation a key associate in his technique to include China, however bilateral relations might weaken if his successor Donald Trump imposes duties on Hanoi, which is a possible goal of his threatened reciprocal tariffs because of its massive commerce surplus.
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Amid this rising uncertainty, European nations are intensifying their contacts with Vietnam, with the top of the European Fee Ursula von der Leyen and France’s President Emmanuel Macron each planning visits within the subsequent months, European officers and diplomats stated, noting the journeys have lengthy been deliberate and usually are not but finalised.
“The tide of tariffs and export controls is rising…We need to create new alternatives to commerce and make investments with trusted companions,” von der Leyen advised prime officers from Southeast Asian bloc ASEAN in a video message after they had been gathered final week in Vietnam’s capital Hanoi.
Macron might journey to Vietnam in late Might, with the purpose of additional boosting ties with the previous colony after Paris formally elevated diplomatic relations final 12 months, whereas von der Leyen might go to earlier with the objective of formally upgrading ties, a senior EU official stated, including EU commerce commissioner Maros Sefcovic might precede them in April.
Macron’s workplace declined to remark. A spokesman for the European Fee couldn’t affirm any official go to at this stage. Vietnam’s overseas ministry didn’t reply to requests for remark.
FROM RAILWAYS TO AID
The EU imported $52 billion value of products from Vietnam final 12 months, lower than half of U.S. imports however nonetheless Vietnam’s third export market thanks additionally to an present free commerce deal.
U.S. producers in Vietnam, whose enterprise depends on exports to the U.S. greater than their European rivals, anticipate cuts of their workforce if Trump imposes tariffs, a survey discovered.
That state of affairs, regardless of being the results of what the EU official described as a “catastrophic” shift in world commerce, might nonetheless result in extra Vietnamese exports to the EU and should in flip facilitate investments in Vietnam by European firms, as they may entry redundant expertise extra simply, he stated.
That comes as Vietnam needs to diversify navy provides and enhance public spending on infrastructure, together with a significant railway challenge, with European firms racing to win contracts.
On growth coverage, Europe is already working to tackle the U.S. mantle after Trump froze overseas support.
Belgium is organising a fund that will contribute to restart the quickly suspended restoration of areas contaminated with agent orange sprayed by U.S. forces in the course of the Vietnam Battle, the nation’s ambassador to Vietnam Karl Van den Bossche stated, noting the plan was to show the reclaimed land into worthwhile industrial zones.
(Reporting by Francesco Guarascio in Hanoi; extra reporting by Elizabeth Pineau in Paris and Khanh Vu in Hanoi.)
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