Spain and Vietnam strengthen economic ties with €305 million financial agreement

During a visit to Vietnam, Spanish Prime Minister Pedro Sánchez emphasized the negative impact of trade wars, especially highlighting the tariffs imposed by the Donald Trump administration, which have raised the costs of Vietnamese products by up to 46%. Sánchez made this statement while signing a financial protocol with Vietnam's government, securing €305 million in credits to support Spanish investments in key sectors, including transportation, infrastructure, energy, and water.

This announcement was made alongside Vietnamese Prime Minister Pham Minh Chinh, marking the first visit by a Spanish president to Vietnam. During the visit, both leaders signed a joint declaration and five agreements that cover political consultations, agriculture, fisheries, diplomatic training, culture, sports, and supporting Spanish investments.

Sánchez highlighted the dynamic economic growth of both countries, noting that their economies are among the most thriving globally. The signed agreements aim to deepen bilateral relations and promote a comprehensive strategic partnership. The agreements include regular political consultations, collaboration on food security, animal and plant health, and sustainable fishing practices. Other areas of cooperation include joint educational programs, cultural exchange, and support for Spanish companies in Vietnam’s key sectors.

One of the agreements focuses on the financial protocol, which allocates €305 million in credits to aid Spanish companies in expanding their operations in Vietnam. Sánchez specifically noted the interest of Spanish businesses in Vietnam’s growing infrastructure sector, particularly railways, where Spain has significant expertise. He emphasized Vietnam’s impressive annual economic growth of around 6% over the past two decades and expressed confidence that the country will achieve high-income status by 2050.

Sánchez also advocated for free trade, stressing Spain’s commitment to an international system based on rules, free commerce, and economic openness, and criticized the trade wars that he believes harm everyone involved.