Viet Nam, EU sign €20 million financing agreement for forestry development

On March 24 in Hanoi, the MAE, in coordination with the European Union (EU) Delegation to Viet Nam, held a ceremony to present the financing agreement for the project “EU Support to Viet Nam’s Forestry Sector.” This marks an important milestone in translating both sides’ commitments into concrete action to protect forest ecosystems and address global climate change.

The event was attended by Deputy Minister of Agriculture and Environment Nguyen Quoc Tri, European Commissioner for International Partnerships Jozef Síkela, and EU Ambassador to Viet Nam Julien Guerrier, along with representatives from relevant agencies and development partners.

Under the agreement, the EU will provide a €20 million non-refundable grant from Official Development Assistance (ODA) to implement the project over a five-year period. The project is expected to contribute to green, sustainable, and inclusive growth, while reducing Viet Nam’s vulnerability to climate change.

Speaking at the ceremony, European Commissioner Jozef Síkela described the signing of the agreement as a positive signal following the establishment of the strategic partnership between the two sides. According to him, the EU and Viet Nam need to work more closely in forest protection, monitoring, and preventing deforestation, ensuring compliance with EU regulations, while also expanding cooperation into other areas such as the circular economy, agriculture, and the environment. He also expressed hope that both sides could implement a circular economy project and obtain approval for it by the end of 2026.

“We need to further strengthen cooperation in key areas such as decarbonization and climate change response, moving toward sustainable development. The EU hopes that Viet Nam will continue to effectively implement its commitments under the Paris Agreement, as a foundation for achieving net-zero emissions by 2050,” Commissioner Jozef Síkela emphasized. “We live in one world and share a common future, so we should aim for more ambitious and sustainable climate goals.”

On the Vietnamese side, Deputy Minister Nguyen Quoc Tri welcomed the EU delegation and reaffirmed that the EU is one of the key partners of Viet Nam’s agriculture and environment sector. In terms of trade cooperation, he noted that Viet Nam’s agro-forestry-fishery exports to the EU continued to grow positively, reaching approximately USD 2.3 billion in 2025. As a dynamic economy, Viet Nam stands ready to serve as a bridge to promote cooperation between the EU and countries in the region.

Beyond forestry, the leadership of the Ministry of Agriculture and Environment expressed expectations for stronger cooperation with the EU in advancing the blue economy, including enhanced marine governance, conservation of coral reefs and mangrove ecosystems, and the transfer of renewable energy technologies.

“Viet Nam proposes that the EU share its experience in ensuring water security and unlocking the potential of critical raw materials. We are ready to participate more deeply in the rare earth supply chain, from upstream to downstream, while ensuring environmentally responsible extraction and efficient resource use in line with international standards. At the same time, we seek to expand cooperation in geological surveys, the application of remote sensing and artificial intelligence, and the transfer of processing technologies,” he emphasized.

Responding to the issue, European Commissioner Jozef Síkela expressed confidence that EU businesses, with their experience in sustainable extraction, would be ideal partners for Viet Nam. “Green investment is not only a responsibility but also a competitive advantage, enabling Viet Nam to integrate more deeply into global value chains, from processing to logistics and rail services,” he said.

Affirming its role as a “financial arm,” Ms. Nicola Beer, Vice President of the European Investment Bank (EIB), stated that the institution stands ready to support Viet Nam through a mutually beneficial cooperation model.

“The EIB can provide financing for critical raw materials projects and the development of high-tech recycling systems, while also supporting subsea infrastructure linked to sustainable ecosystem protection. In particular, we aim to connect Viet Nam’s carbon credit system with the EU market through smart agriculture and mangrove restoration projects. In this regard, the €200 million financing package implemented via Techcombank will serve as a catalyst for the green business community to accelerate,” she noted.