Vietnam and Spain have great potential for cooperation in various sectors, with the former attracting Spanish investors due to its stable politics and competitive production costs, speakers said at a meeting on Thursday.
Speaking at the Vietnam-Spain Business Forum, Phan Thi Thang, deputy minister of Industry and Trade, said: “Spain is an important partner for Vietnam, both in the region and globally.”
“Spain is Vietnam’s fifth-largest trading partner within the European Union, while Vietnam holds the title of Spain’s largest trade partner in ASEAN.”
In 2024, total trade between the two nations reached an impressive US$4.72 billion, she added.
However, Deputy Minister of Industry and Trade Phan Thi Thang acknowledged that the current economic ties don’t fully reflect the true potential of both countries.
Spanish investments in Vietnam remain modest, ranking 46th out of 147 investing countries.
Deputy Minister of Industry and Trade Phan Thi Thang identified several key factors that could enhance this relationship.
Vietnam’s status as the third-largest economy in ASEAN, along with its stable political climate and attractive production costs, makes it a prime location for Spanish companies.
In return, Spain’s strengths in energy and technology can significantly aid Vietnamese businesses as they expand globally.
The EU-Vietnam Free Trade Agreement (EVFTA) is also set to play a crucial role, aiming to eliminate nearly all tariffs within the next seven to 10 years.
Both nations serve as gateways to major economic regions, providing access to vast markets in the EU and ASEAN.
The forum aims to strengthen trade and investment ties, encouraging collaboration in various sectors, including food processing, textiles, logistics, tourism, and renewable energy, according to her.
Partnering with Ho Chi Minh City
Bui Xuan Cuong, vice chairman of the Ho Chi Minh City People’s Committee, said the city is actively attracting investment in key sectors such as high technology, transportation, healthcare, and green growth.
Key projects in the pipeline include the establishment of an international financial center, a vast urban railway system, and a new international transshipment port in Cần Giờ district.
HCMC is also focused on sustainable economic growth, with a goal of achieving net-zero emissions by 2050.
He said the city is willing to enhance cooperation with Spain in areas such as transportation infrastructure, renewable energy, food processing, and digital transformation.
“HCMC is dedicated to improving the investment climate for foreign businesses, including those from Spain,” he noted.
Spain currently has 44 investment projects in the city, worth US$16.2 million in registered capital, he said.
While bilateral trade has surpassed US$400 million, both sides recognize the potential for much more, he added.
Spanish Prime Minister Pedro Sánchez, who also attended the forum, said Vietnam is a top priority for Spain in Southeast Asia.
He emphasised the importance of elevating bilateral relations to a comprehensive strategic partnership.
He also expressed Spain’s desire to support Vietnam’s development, particularly in sectors where Spain excels, such as transport infrastructure, renewable energy, and tourism.
The forum took place as part of the Prime Minister Sánchez’s historic visit to Vietnam from April 8 to 10, marking the first visit by a Spanish Prime Minister since the establishment of diplomatic relations in 1977.
His delegation included representatives from 20 leading Spanish corporations.
Over the past 48 years, relations between Vietnam and Spain have flourished, with collaboration expanding across various fields.
As of January 2025, Spain had 97 projects in Vietnam, amounting to US$143.9 million in investment, making it the 46th-largest investor in Vietnam.
Meanwhile, Vietnam has three investment projects in Spain, with a total value of US$64.2 million.
