Vietnam – Spain: Expanding Cooperation in Economy, Trade, and Investment

Ho Chi Minh City, April 10, 2025 – The Vietnam – Spain Business Forum, held in Ho Chi Minh City during the official visit of Spanish Prime Minister Pedro Sánchez, highlighted the vast potential for deepened cooperation between the two countries in the fields of economy, trade, investment, technology, tourism, and renewable energy.

Speaking at the forum, Prime Minister Pedro Sánchez emphasized that Vietnam is a dynamic economy, achieving a growth rate of over 7% in 2024 – an impressive figure amid ongoing global economic fluctuations. Spain wishes to be an active partner in Vietnam’s path to modernization and development, aiming to become a high-income country by 2050.

According to Deputy Minister of Industry and Trade Phan Thi Thang, Spain is currently Vietnam’s fifth-largest trading partner in the EU, while Vietnam is Spain’s largest trading partner in ASEAN. Bilateral trade reached USD 4.72 billion in 2024, though still not commensurate with the potential of both sides.

In terms of investment, Spain has 97 projects in Vietnam with a total registered capital of nearly USD 144 million, ranking 46th among 147 countries and territories investing in Vietnam. On the other hand, Vietnam has three investment projects in Spain worth over USD 64 million.

Deputy Minister Thang highlighted potential cooperation areas such as food processing, textiles, mechanical engineering, transportation infrastructure, logistics, clean energy, tourism, and digital transformation. Vietnam’s advantages include being the third-largest economy in ASEAN, political stability, competitive production costs, and serving as a gateway to the nearly 700-million-strong ASEAN market. Spain, with strengths in energy, technology, materials, and infrastructure, can support Vietnamese businesses in reaching international markets.

The EU-Vietnam Free Trade Agreement (EVFTA) will continue to serve as a key driver for economic cooperation, with nearly all tariffs set to be eliminated within 7 to 10 years.

Vice Chairman of the Ho Chi Minh City People’s Committee Bui Xuan Cuong stated that Spain is a key partner of the city, with 44 investment projects totaling USD 16.2 million. Bilateral trade in 2024 reached nearly USD 412 million. The city is actively attracting investment in high-tech, transportation infrastructure, healthcare, education, sports, environment, trade, and financial services.

Some major projects underway in Ho Chi Minh City include the international financial center, a 355 km urban railway system under the TOD (Transit-Oriented Development) model, the Can Gio international transshipment port, a data center, and a semiconductor component manufacturing plant.

The city commits to creating the most favorable conditions for Spanish businesses to expand investment, accompanying them in building efficient, flexible, and sustainable supply chains not only in Vietnam but throughout the ASEAN region.

During the forum, several exemplary cooperation models were introduced, such as Spain’s Grupo Antolín investing in an automotive component factory and partnering with VinFast, or the collaboration between Vietnam’s ITR and Spain’s startup Mjn-neuro in developing AI-integrated medical devices.

Prime Minister Pedro Sánchez’s visit – the first by a Spanish head of government since diplomatic relations were established in 1977 – marks an important milestone in elevating bilateral ties to a new height, toward a comprehensive strategic partnership.