Vietnam, Czech share prosperity

Cooperation between Vietnam and the Czech Republic has been steadily strengthened and expanded across a wide range of fields in the 75 years since diplomatic relations were established in 1950. This year, notably, marks a significant milestone with the two countries officially upgrading their relationship to a Strategic Partnership, opening a new era of deeper, more effective, and more substantive collaboration.

The elevated partnership is set to enhance cooperation not only in politics and economics but also in security and defense, education, science and technology, and cultural and people-to-people exchanges, creating a solid foundation for long-term mutual benefit.

Key strategic partner

The Vietnam-Czech Republic relationship has recorded numerous positive outcomes in cooperation. The Czech Republic is one of Vietnam’s leading trade partners in central and eastern Europe, while Vietnam stands as the Czech Republic’s most important partner in ASEAN. Notably, the Czech Republic was the first member of the EU to ratify both the EU-Vietnam Free Trade Agreement (EUVFTA) and the EU-Vietnam Investment Protection Agreement (EUVIPA), underscoring its commitment to deepening economic and strategic ties with Vietnam and paving the way for even greater collaboration in the future.

Czech businesses have also been actively investing in Vietnam in recent years. According to data from the Foreign Investment Agency (FIA) at the Ministry of Finance, the Czech Republic has invested in 46 active projects in Vietnam with total registered capital of $91.5 million, ranking it 52nd among countries and territories investing in Vietnam. Czech investors are primarily focused on sectors such as manufacturing and processing, real estate, and clean energy.

Importantly, the elevation of relations between Vietnam and the Czech Republic to a Strategic Partnership this year is expected to open the door to more intensive cooperation across economic, technological, and educational fields. Mr. Miloš Vystrčil, President of the Senate of the Parliament of the Czech Republic, told Vietnam Economic Times / VnEconomy that the longstanding and positive historical ties between the two countries will further strengthen the development of their already strong cooperation.

While the Czech Republic brings a well-developed technological and industrial base, Vietnam offers a dynamic and rapidly-expanding market. This combination creates fertile ground for collaboration. “This creates space for trade growth, joint investment projects, and the sharing of know-how, for example in the fields of energy, innovation, science and research, and a number of other sectors,” he noted.

Vietnam and the Czech Republic are also poised to strengthen collaboration in the fields of education, culture, and security. By leveraging these opportunities, the strategic partnership can promote long-term and stable development in bilateral relations, bringing benefits not only economically but also socially and politically. Such comprehensive cooperation will lay a solid foundation for future generations, fostering shared prosperity and a resilient, enduring partnership between the two countries.

Gateway to growth

Vietnam has increasingly emerged as a market of special interest to the Czech business community over recent years. Its stable macro-economic environment, combined with the rapid development of key industries, makes the country highly attractive to investors seeking new opportunities in Asia. Against this backdrop, Vietnam is widely regarded as a promising partner for Czech businesses, offering significant potential for both medium and long-term cooperation.

The interest of Czech businesses in Vietnam also stems from the continual strengthening of economic and trade relations between the two countries over recent years. Bilateral trade has maintained a positive growth trajectory, reaching more than $2.04 billion in 2024 and $1.87 billion in the first ten months of 2025, thereby providing an important foundation for expanding investment cooperation. Many Czech companies view Vietnam not only as a promising consumer market but also as an effective gateway to access the broader ASEAN region.

Beyond the sectors where the Czech Republic has long invested in Vietnam, Czech businesses are also actively exploring and expanding into new and emerging areas with the potential for high growth. Mr. Radek Jakubský, Vice President of the Czech Chamber of Commerce, said many Czech companies have been seeking investment and cooperation opportunities in fields such as information technology, smart city solutions, environmentally-friendly technologies, healthcare, and a wide range of other sectors.

The growing interest reflects both the dynamic development of the Vietnamese market and the willingness of Czech enterprises to bring their expertise and innovative solutions to support Vietnam’s modernization and sustainable growth.

Vietnam’s emphasis on attracting high-quality investment, promoting digital transformation, and developing green infrastructure has also created numerous new opportunities for international investors, including those from the Czech Republic. Support mechanisms for foreign enterprises in Vietnam, such as administrative reforms and tax incentives for high-tech sectors, are increasingly recognized as transparent and competitive. “Vietnam’s rapid economic growth is creating countless opportunities not only for large-scale investments but also for expanding cooperation across multiple fields,” Mr. Jakubský noted.

For future cooperation

There remains considerable space for further cooperation and development between Vietnam and the Czech Republic, both at the State level and between businesses on both sides. For example, as Vietnam moves towards green growth, digital transformation, and advanced technologies, the Czech Republic brings extensive experience in areas such as defense, automation, robotics, environmental management, and clean energy. The potential for the two to jointly develop projects or cooperate in technology transfer in these fields is vast and largely untapped.

Mr. Vystrčil highlighted that the Czech Republic possesses a strong technological foundation, particularly in automation, robotics, and eco-innovation, which are precisely the areas that Vietnam, as a rapidly-growing economy, requires for sustainable modernization. Technology transfer and joint projects in these sectors could generate mutual benefits. “Vietnam could use Czech know-how to ensure energy efficiency, develop green infrastructure, and support digital transformation, while Czech companies would have access to Vietnam’s growing market with all the new favorable opportunities it brings,” he said.

Looking ahead, if both countries focus their efforts on cooperation in these strategic areas, the benefits could extend beyond economics to create a positive impact on global sustainability. Furthermore, fostering collaboration through initiatives such as joint research centers, startup support, and expert exchanges will play a key role in strengthening bilateral ties.

However, Czech businesses still face several challenges when investing in Vietnam, which could partly affect the overall picture of cooperation. Mr. Vystrčil noted that the main obstacles include cultural differences in the business environment and the complexity of administrative procedures. Though Vietnam holds enormous growth potential, it continues to present challenges related to legal certainty and transparent bureaucracy.

To overcome such barriers, it is crucial to strengthen and support diplomatic and trade channels through political leadership, increase the presence of Czech companies in the region, and facilitate mutual business missions, while promoting closer collaboration between business associations and industry partners in both countries. “It is also important to facilitate access to information about the Vietnamese market and investment conditions for Czech businesses, not only at the government level,” Mr. Vystrčil suggested.