Green finance becomes a key pillar in the partnership between Vietnam and Luxembourg with the engagement of the banking sector, stock exchanges, and financial resources for Vietnam’s green growth strategy in 2021-2030 with a vision to 2050.

Vietnam and Luxembourg signed an agreement on green finance on May 4. Photo: VGP

It’s the news from the meeting held today [May 4] in Hanoi between Vietnam’s Prime Minister Pham Minh Chinh and his Luxembourg counterpart Xavier Bettel during his three-day visit to the Southeast Asian country.

Among agreements signed in the presence of the two prime ministers, the two finance ministries established the Strategic Partnership on Green Finance.

It’s a new pillar of cooperation that strengthens ties between the two sides, particularly in capacity building, technology transfer, and financial support for agriculture and climate change initiatives that promote inclusiveness, sustainable development, and green growth.

Prime Minister Chinh said Luxembourg, as a European financial hub, would help Vietnam attain its climate goals set for 2050. 

Both prime ministers emphasized the significance of creating new frameworks appropriate for the potential cooperation and development between the two nations.

Chinh welcomed the delegation, comprising top companies from Luxembourg with expertise in banking, finance, logistics, and energy transition, who will participate in the Vietnam-Luxembourg Business Forum.

In addition, the establishment of logistics hubs and a network of customs warehouses was agreed upon by both parties.

Trade and development cooperation

Vietnam's Prime Minister Pham Minh Chinh and Luxembourg PM Xavier Bettel at the Temple of Literature in Hanoi on May 4. Photo: Minh Chau/Tien Phong

Economic ties become the highlight of Vietnam-Luxembourg relations.

Regarding investment, with a total registered capital of US$2.6 billion, Luxembourg is currently the third-largest European investor in Vietnam. Meanwhile, bilateral trade is on the increase.

During the meeting, the prime minister of Luxembourg committed to fully utilizing the EU-Vietnam Free Trade Agreement (EVFTA) to expand bilateral trade, support the expansion of cooperation between the EU and Vietnam on the development of sustainable fisheries, and urge the European Commission (EC) to quickly lift the sanctions on Vietnamese fisheries exports related to IUU fishing.

Leaders of the governments of Vietnam and Luxembourg also decided to promote collaboration in other fields, including people-to-people exchanges, tourism, climate change mitigation, science, technology, media, and education.

Chinh called on Luxembourg to continue providing official development assistance (ODA) to Vietnam in the financial and banking sectors.

On this occasion, Prime Minister Bettel voiced his support for increasing the number of scholarships available for Vietnamese students to study in Luxembourg.

Discussions on regional and global issues of shared interest were also held between the two prime ministers, who reaffirmed their commitment to working together and supporting one another at multilateral forums. The forums and international organizations they mentioned are the ASEAN-EU, ASEM, and the UN, particularly while both nations are members of the UN Human Rights Council.

Vietnam and Luxembourg reiterated the significance of upholding peace, stability, security, and freedom of navigation and overflight in the South China Sea (called East Sea by Vietnam), abstaining from the use of force or the threat of force, and resolving disputes through peaceful means by international law, particularly the 1982 United Nations Convention on the Law of the Sea (UNCLOS).

Additionally, both parties favored the swift adoption of the Code of Conduct of Parties in the South China Sea (COC) that was substantive, practical, and compliant with international law.

Fruitful visit

The two prime ministers in Hanoi on May 4. Photo: VGP

Xavier Bettel’s visit to Vietnam came five months after PM Chinh’s visit to Luxembourg, demonstrating the importance of the relationship between the two countries.

Bettel’s trip, at the invitation of PM Chinh on the 50th anniversary of establishing diplomatic ties, includes business presentations and visits to well-known tourist attractions.

On the second day of the visit, Xavier Bettel visited the Temple of Literature and the Vietnam Fine Arts Museum with the companion of PM Chinh.

The Luxembourg delegation spent the first day of their trip touring the magnificent Ha Long Bay, recognized as a UNESCO World Heritage Site. Additionally, they visited the port city of Haiphong, where they attended a presentation on the plans and initiatives of Vietnamese automaker VinFast.

The delegation then traveled to Ho Chi Minh City, where the Luxembourgish Prime Minister took part in a bell-ringing ceremony at the stock exchange. The final day of the visit was devoted to the Vietnam-Luxembourg Business Forum and themed workshops organized by the Chamber of Commerce in conjunction with the Luxembourgish embassy in Vietnam.

Overall, the visit aimed to strengthen trade and cultural ties between Vietnam and Luxembourg and to promote further cooperation in various sectors such as tourism, education, and business.