EU, Vietnam to deepen ties on critical minerals, chip supply, ‘trusted’ 5G

The EU bloc and Vietnam are set to boost cooperation on trade and investment in critical minerals, chip supply chains, and secure 5G infrastructure in a push to upgrade diplomatic relations and evade coercive trade policies.

As reported by Reuters, the eight-page draft also mentions the EU’s intentions to explore the potential transfer of defence technology to Hanoi.

The collaboration also focused on developing “trusted” telecom communication networks, including satellite connectivity and 5G, calling it a priority.

European firms, such as Nokia and Ericsson are working in Vietnam to develop the 5G network.

The EU also affirmed to transfer the “non-sensitive technology and know-how”, as per document.

Both sides are also set to explore the investment in infrastructure, such as railways.

According to the document, critical minerals would be in focus as Vietnam possess largely untapped deposits of gallium and rare earths.

“The EU and Vietnam will promote trade and investment in goods, services, and technologies that support sustainable mining and processing for critical minerals”, as they seek closer cooperation in the sector, the document read.

The draft also talks about possible investment in semiconductors for deeper cooperation at a time when the world is experiencing a crunch in global supply chains.

In this regard, Vietnam plays an important role in chip packaging, testing and assembling. It also hosts various operations conducted by Amkor Technology and Intel.

Earlier this month, the country also started its first semiconductor production facility.

The draft, which could be subject to change, is scheduled to be signed on Thursday during the meeting of the European Council President Antonio Costa with Vietnam’s leaders in Hanoi.