Vietnam, Luxembourg embrace strategic partnership in green finance

Vietnam and Luxembourg will soon establish a strategic partnership framework for green finance to help the Southeast Asian nation pursue its green growth strategy.

This is an outcome from Thursday's talks in Hanoi between Vietnamese Prime Minister Pham Minh Chinh and Luxembourg counterpart Xavier Bettel, who is on an official visit to Vietnam from May 3-5.

This is Bettel's first official visit outside Europe so far this year and the first by a Luxembourg prime minister to Hanoi in over 20 years.

Chinh chaired an official welcome ceremony for Bettel on Thursday, followed by official talks. They also witnessed the signing of some cooperation agreements between their countries’ ministries and sectors.

The signed agreements included one that helps the two governments avoid double taxation and prevents tax evasion regarding income and assets; and an agreement on the strategic partnership for green finance.

At their talks, the two sides agreed to continue the exchange of delegations at all levels, especially high levels, promote people-to-people exchanges; and effectively implement bilateral cooperation mechanisms.

The two countries will continue to make effective use of the EU-Vietnam Free Trade Agreement (EVFTA) by agreeing to create more favorable conditions for goods to access both markets, promoting the construction of logistics centers and bonded warehouses.

The Vietnamese PM said his government always creates favorable conditions for Luxembourg businesses to increase investment in Vietnam, especially in areas like infrastructure, digital transformation, renewable energy, and pharmaceutical technology.

Chinh added that Vietnam expects Luxembourg to push the EU to remove its yellow card against seafood exports from Vietnam, taking into account its efforts in the past time in fully and seriously implementing EU recommendations, which aim at developing a sustainable fish sector and ensuring livelihoods for Vietnamese fishermen.

In finance, the two sides agreed to promote cooperation between the Vietnam Stock Exchange and Luxembourg Stock Exchange; to strengthen cooperation in banking, connecting Luxembourg's financial resources to help Vietnam implement its green growth strategy for the 2021-2030 period, with a vision to 2050.

During their talks, the Vietnamese leader asked Luxembourg to continue providing official development assistance, notably in agriculture, rural development, finance, banking, education, and some others.

In climate change issues, Vietnam asked Luxembourg to provide technology and resource support to implement climate change adaptation projects in Vietnam, especially in the Mekong Delta, to enhance support for the Mekong River Commission, specially in the management and sustainable use of water resources.

The two sides pledged to promote cooperation in education and training, information and communications, science and technology, culture, sports, tourism and people-to-people exchanges, and to ease visa issues.

Vietnam and Luxembourg set up diplomatic ties on November 15, 1973. As of March 2023, Luxembourg had invested $2.6 billion in 64 projects in Vietnam, ranking third among 24 EU members and 17th among 139 countries and territories investing in the Southeast Asian nation, according to Vietnam’s official data.

In 2022, bilateral trade reached $187.1 million, rising 69% year on year. The figure included $130.14 million worth of Vietnamese exports and $56.96 million worth of exports from Luxembourg.