Vietnam and Luxembourg have agreed to establish a strategic partnership on green finance, which is a strength of the latter, to help Vietnam implement its national strategy on green growth and climate change response, especially its commitments made at COP26 in Glasgow last year.

This was part of major discussions between Prime Minister Pham Minh Chinh and his counterpart Prime Minister Xavier Bettel during the former’s visit to Luxembourg on December 9.

The leaders expressed delight at the positive development of bilateral ties, especially in the field of investment. Luxembourg is Vietnam’s third-largest European investor, with total capital of $2.6 billion.

On his first official visit to the country, Prime Minister Chinh said Vietnam treasures the comprehensive partnership and cooperation in place.

Speaking highly of the visit, Prime Minister Bettel said he believed it will lift bilateral relations to new heights as the two countries celebrate the 50th anniversary of ties in 2023.

Regarding economic cooperation, the two called for businesses and departments on both sides to fully and effectively implement the European - Vietnam Free Trade Agreement (EUVFTA), focusing on logistics connections and establishing bonded warehouses in each country to promote trade between the EU and ASEAN. They also touched on a double taxation avoidance agreement.

Prime Minister Chinh asked that the Luxembourg Government create favorable conditions for Vietnamese exports to enter the country and the EU, especially those where Vietnam has strengths, such as agriculture, forestry, and fisheries products. He also called on businesses in Luxembourg to boost their investment in Vietnam in fields like strategic infrastructure, digital transformation, renewable energy, and pharmaceutical technology.

He also suggested the host country support Vietnam in building an international financial center in Ho Chi Minh City, urge other European nations to soon ratify the EU-Vietnam Investment Protection Agreement (EUVIPA), and help with efforts to have the European Commission remove the “yellow card” it has imposed on Vietnam’s fisheries products due to illegal, unreported, and unregulated (IUU) fishing.

For his part, Prime Minister Bettel affirmed that the EUVFTA is a crucial driving force in accelerating bilateral trade and economic ties, and he spoke highly of Vietnam’s efforts in promoting a sustainable fisheries industry.

He said that Luxembourg is ready to support Vietnam in regard to the circular economy, banking, the stock exchange, and climate finance. The two countries, he added, should promote cooperation in green finance, which is a strength of Luxembourg, as a pillar of bilateral relations.

Regarding climate change, Prime Minister Chinh asked for financial and technological assistance from Luxembourg to help Vietnam develop renewable energy and implement climate change response, especially in the Mekong Delta.

On the occasion, the two leaders also agreed to expand cooperation to national security and defense, the prevention of transnational crime, and issues surrounding cybersecurity, culture, tourism, education and training, and transport.

Prime Minister Chinh invited his counterpart to visit Vietnam next year, which Prime Minister Bettel accepted and hoped to schedule through diplomatic arrangements.