EU’s global gateway strategy boosts sustainable investment, connectivity in Vietnam

The European Union (EU) is stepping up efforts to expand sustainable investment and connectivity in Vietnam under its Global Gateway strategy, reaffirming a strong, long-term commitment to supporting the country’s green transition and economic development.

During his visit to Vietnam from March 23–25, EU Commissioner for International Partnerships Jozef Síkela highlighted the bloc’s determination to translate strategic cooperation into concrete projects, marking a significant step forward in the implementation of the EU–Vietnam Comprehensive Strategic Partnership.

Speaking at the EU–Vietnam Global Gateway Business and Investment Forum on March 24, Síkela described Vietnam as a dynamic economy with strong growth, a young population and vast potential.

With the Global Gateway strategy, the EU is bringing European businesses and investors to Vietnam to turn ambition into tangible projects, create jobs and support the country’s green transition, he said.

The Global Gateway is the EU’s flagship initiative to mobilize up to 400 billion EUR (468.71 billion USD) in public and private investments worldwide between 2021 and 2027. In Vietnam, this approach is being realised through “Team Europe” initiatives and major financing packages, according to VNA.

The White Book handover from EuroCham Vietnam to the Vietnamese Government. (Photo: VietnamPlus)

Síkela announced that the EU is rolling out a 560-million-EUR investment package to support Vietnam’s energy transition and economic development. A key project is the Bac Ai pumped-storage hydropower plant, with a capacity of 1,200 MW and an estimated total investment of around 900 million EUR. The project is expected to play a critical role in stabilising the national power system, enhancing energy storage capacity and improving the reliability of renewable energy sources.

In parallel, the EU has launched a 40-million-EUR Sustainable Transport Facility aimed at leveraging over 1 billion EUR in investment for railway and urban transport projects.

Nicola Beer, Vice-President of the European Investment Bank (EIB), affirmed that the bank, as the EU’s financial arm, stands ready to support Vietnam in implementing major infrastructure projects, including the planned North–South high-speed railway. She noted the success of Hanoi’s Metro Line 3 as a clear example of effective EU–Vietnam cooperation.

Expanding access to sustainable finance was another key focus of the visit. A newly announced 200-million-EUR financing agreement between the EIB and Techcombank will help Vietnamese businesses access preferential funding for renewable energy, energy efficiency and clean transport projects. This is expected to foster stronger synergy between public ambitions and private capital flows.

Beer said the EIB has been active in Vietnam since 1997, investing around 800 million EUR in sustainable infrastructure, transport and climate action. She stressed that future cooperation will prioritise energy systems, green finance and sustainable mobility, aiming to deliver high-quality projects with long-term impact.

Representing the Vietnamese Government, Deputy Prime Minister Ho Duc Phoc expressed appreciation for sustained commitment from the EU. He underscored Vietnam’s desire to access green finance and attract high-quality, selective investments in areas such as the digital economy, circular economy, semiconductors and high technology, while advancing a just energy transition.

He reaffirmed that Vietnam considers the EU a leading partner and remains committed to achieving net-zero emissions by 2050. To maximize cooperation effectiveness, he called for enhanced technical support from the EU to help Vietnamese enterprises better integrate environmental, social and governance (ESG) standards into global value chains.

The Deputy PM also urged EU member states to expedite the ratification of the EU–Vietnam Investment Protection Agreement (EVIPA), describing it as a crucial missing piece to establish a stable and secure legal framework for businesses on both sides.

Looking ahead, he proposed closer cooperation in developing new growth models, including free trade zones and international financial centers in Vietnam.

“These will serve as magnets for global capital, generating new added value for both Vietnam and its European partners,” he said.

ISI shows rising confidence in innovation among Vietnamese businesses

Vietnam’s Innovation Sentiment Index (ISI) reached 76 out of 100 points in the first quarter of 2026, showing rising confidence in innovation among leading businesses in Vietnam, according to a report released by Viet Research on May 12.

According to the survey, the score was well above the 50-point threshold that signals expansion or contraction trends, placing the index in what Viet Research described as a zone of “systematic optimism.”

The result comes as Vietnam’s economy continues to recover, with GDP growth remaining above 8%, inflation under control, and exports and foreign direct investment (FDI) continuing to serve as key growth drivers. A more favorable macroeconomic environment has encouraged businesses to expand long-term investment, particularly in innovation, cited VOV.

Photo: VOV

By sector, banking and insurance recorded the highest score at 85 points, followed by technology, telecommunications and digital transformation at 78 points. Logistics, retail and manufacturing each scored 75 points, while pharmaceuticals and medical equipment reached 73 points, and food and beverage businesses recorded 71 points. However, Viet Research noted that the spread of innovation across sectors remains uneven.

According to the research firm, three main factors are behind growing confidence in innovation among Vietnamese businesses in early 2026: positive policy developments following Resolution 57; competitive pressure from artificial intelligence (AI) and digital transformation; and spillover effects from FDI inflows into semiconductors, AI and clean energy.

Experts said the value of the ISI lies not only in a single quarterly result, but also in its ability to build a quarterly data series over time, helping identify investment, production and recruitment trends at an early stage.

As Vietnamese businesses step up technological transformation, the ISI is seen as a tool to help identify market and investment trends early while supporting efforts to monitor the innovation environment and shape policy planning.

Viet Research said growing confidence among leading innovative businesses could create spillover effects across supply chains, capital markets and efforts to attract highly skilled workers.

Vietnam Festival in Tokyo eyes higher turnout

The Vietnam Festival in Japan, set to enter its 18th edition on May 30–31 at Yoyogi Park in Tokyo, is expected to attract over 180,000 visitors, up from about 140,000 last year.

The event will serve as both a showcase of Vietnamese culture, cuisine and traditional arts and a vivid symbol of friendship and close bonds between the two nations, said Vietnamese Ambassador to Japan Pham Quang Hieu.

Speaking at a May 12 press conference, Hieu called the event the largest annual Vietnamese festival in Japan, designed to promote the country’s image and foster people-to-people exchanges.

Since its launch in 2008, the festival has grown into one of the biggest and most prestigious Vietnam – Japan cultural exchange platforms in the country, he said, adding he is confident this year’s edition will continue to deepen mutual understanding and affection between their people.

He also underscored Chairwoman of the Japan – Vietnam Parliamentary Friendship Alliance Yuko Obuchi accepting the role as the festival’s honorary chair signals the importance Japanese political leaders attach to friendship and cooperation with Vietnam and offers a major source of encouragement for organisers and the Vietnamese community on the ground, reported VNA.

Vietnamese Ambassador to Japan Pham Quang Hieu speaks at the press conference on May 12. (Photo: VNA)

Former Lower House member Aoyagi, co-head of the festival’s organising committee, said this year’s event stands as clear evidence that Vietnam – Japan exchanges are writing new chapters in bilateral ties. Organisers would make every effort to deliver a successful festival, providing exciting experiences for visitors while giving first-timers a taste of its one-of-a-kind vibe, he said.

According to the organisers, the festival will showcase about 120 booths highlighting traditional Vietnamese folk culture, lively water puppet shows, and beloved Vietnamese dishes familiar to Japanese guests, such as steaming bowls of pho and crispy baguettes.

This year, a new mobile app-based ordering system for different foods will be launched to help reduce waiting times for visitors.

Scientists warn of possible “super El Niño” in late 2026

Vietnam is facing mounting concerns over increasingly extreme weather patterns in 2026 as climate experts warn that El Niño conditions are gradually forming and could intensify later this year.

Meteorologists say the combined impact of climate change and El Niño may trigger a series of unusual and severe weather events, ranging from record-breaking heatwaves to violent storms, large hail and unpredictable rainfall patterns.

The biggest concern is the possible return of El Niño during the second half of the year.

International climate models are currently forecasting an 80-90% probability that El Niño conditions will emerge between mid-2026 and late 2026.

Some long-range scenarios are even warning of a potential “super El Niño” developing toward the end of the year and extending into 2027.

El Niño is a recurring climate phenomenon caused by unusually warm sea surface temperatures in the central and eastern Pacific Ocean, typically lasting between nine and 12 months.

According to the World Meteorological Organization, sea surface temperatures near the equatorial Pacific have risen rapidly in recent months, signaling a strong likelihood that El Niño conditions will develop between May and July.

When El Niño dominates, weather patterns across many regions become highly disrupted.

Experts warn that droughts and heatwaves tend to become more intense and widespread, while storms and heavy rainfall events can shift unpredictably and grow more extreme.

Southern Vietnam’s rainy season is also expected to arrive later and end earlier than usual, VNN reported.

Early heatwaves have affected northern and central Vietnam since March. Credit: Nam Khanh

Historical El Niño years such as 1993 and 1998 saw rainy seasons in Ho Chi Minh City and Can Tho delayed until late May or even mid-June.

Extreme heat has already appeared unusually early across Vietnam in 2026.

In northern Vietnam and central provinces stretching from Thanh Hoa to Hue, temperatures exceeded 40 degrees Celsius in late March and early April, breaking records at several meteorological stations.

Southern Vietnam has also endured a prolonged heatwave since mid-February, with extreme temperatures persisting through April.

Although scattered rainfall arrived in early May, forecasters say the heat has shown little sign of easing significantly.

Climate experts believe the unusual heat is linked to disruptions in atmospheric circulation patterns, causing heatwaves to become more prolonged and intense.

At the same time, interactions between cold air masses and high humidity levels have created dangerous storm conditions across northern and central Vietnam.

Since mid-April, provinces in northern mountainous areas, Hanoi and parts of north-central Vietnam have experienced repeated episodes of severe thunderstorms, strong winds and large hail.

Some hailstones recorded in Phu Tho and Thai Nguyen provinces were reportedly as large as chicken eggs or tennis balls, damaging roofs, crops and vehicles.

Nguyen Van Huong, head of weather forecasting at Vietnam’s National Center for Hydro-Meteorological Forecasting, said thunderstorms are common during seasonal transitions but noted that this year’s pattern has been highly unusual.

“The simultaneous occurrence of widespread hailstorms from mountainous regions to lowland areas during early May is relatively rare,” Huong said.

“We expect thunderstorms and hail events to continue appearing with higher frequency in the coming period.”

Experts say the increasingly erratic weather highlights the urgent need to strengthen forecasting systems, improve disaster preparedness and accelerate climate adaptation efforts to reduce risks to people and infrastructure.

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