Vietnam-Spain Free Trade Talks Take Center Stage in Hanoi
Vietnam and Spain are moving closer on trade and cooperation. In a key meeting held in Hanoi, Vietnamese Prime Minister Pham Minh Chinh welcomed his Spanish counterpart, Prime Minister Pedro Sanchez, to discuss deeper ties. At the heart of the talks was the Vietnam-Spain free trade agenda, which both countries see as essential in a shifting global landscape.
The leaders agreed that it’s time to upgrade their diplomatic relationship to a comprehensive strategic partnership. Their shared vision: strengthen economic ties, expand defense cooperation, and work together on major infrastructure projects like railways.
Standing Up for Free Trade
The meeting came just days after the U.S., under a revived Trump administration, imposed new tariffs—46% on Vietnamese goods and 25% on EU products. Both leaders spoke out strongly against these moves.
“Trade wars harm everyone,” said PM Sanchez. “Spain supports rules-based free trade.”
Vietnam echoed this view, warning that protectionist policies hurt smaller economies and disrupt global supply chains.
With Spain as a key EU player and Vietnam a rising manufacturing hub in Asia, the Vietnam-Spain free trade alliance could offer both countries a buffer against future trade shocks. It’s also a step toward reducing over-reliance on the U.S. market.
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Fast-Tracking Railway Cooperation
One of the most exciting developments was Spain’s offer to support Vietnam’s ambitious high-speed railway project. The 1,541 km line will connect Hanoi in the north to Ho Chi Minh City in the south. Spain, with its advanced railway technology and experience, is keen to play a key role.
Beyond domestic rail, the two sides also discussed the potential for new rail links between Vietnam and China, strengthening regional connectivity and trade.
“We are ready to share our expertise and technology,” said a Spanish transport official traveling with PM Sanchez.
Read more about the EU-Vietnam Free Trade Agreement from the European Commission
From Manufacturing to Modernization
Vietnam is rapidly modernizing. From smart cities to green energy and logistics, the country is positioning itself as Southeast Asia’s innovation hub. Spain, meanwhile, offers deep experience in sustainable infrastructure, digital transformation, and tourism.
The meeting also explored joint efforts in defense cooperation, climate action, and educational exchange.
As PM Chinh said:
“Vietnam values its friendship with Spain. We want this to be more than trade—we want deep, strategic trust.”
Why This Matters
The Vietnam-Spain free trade push is not just about economic gains. It’s a signal to the world: middle powers can band together to shape a more balanced, rules-based global order.
For Vietnam, it’s a move to diversify its trade and diplomatic ties. For Spain, it’s a chance to strengthen its Asia outreach and back EU-wide strategies in the Indo-Pacific.
As global tensions rise and trade becomes a tool of geopolitics, alliances like this one are becoming more important than ever.
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