Prime Minister of the Grand Duchy of Luxembourg Xavier Bettel (Photo: VNA)

The visit, the first by a Luxembourg PM to Vietnam in over the past 20 years, is expected to promote the friendship and partnership between the two countries in a deeper and more substantive manner.

Vietnam and Luxembourg established diplomatic relations on November 15, 1973, and over the past five decades bilateral relations have developed positively. The two sides have maintained regular reciprocal visit exchanges to outline orientation for future cooperation.

Most recently, in December 2022, Prime Minister Pham Minh Chinh paid an official visit to Luxembourg, during which the two sides agreed to set up a strategic partnership in green finance at an early date.

Luxembourg agreed to support the development of a new financial hub in Ho Chi Minh City and strengthen cooperation with Vietnam in trade, investment, education-training, science-technology, and stock market.

Economic-trade-investment cooperation is an important pillar in bilateral relations. Two-way trade turnover between the two countries has increased over the years, from US$96 million in 2019 to US$181.6 million in 20021 and US$187.1 million in 2022.

As of March 2023, Luxembourg had invested in 64 projects worth US$2.6 billion in Vietnam, ranking third among 24 EU countries and 17th out of 139 foreign investors in the country.

The two countries are currently working together towards establishing a bilateral strategic partnership in green finance, aiming for sustainable and inclusive development, and implementing circular economy towards green growth.

The two sides have also agreed to expand their collaboration in other fields such as climate change response, environment, culture, and education and training.

Vietnam and Luxembourg have also maintained close coordination and cooperation at multilateral forums such as the Asia – Europe Meeting (ASEM) and within the framework of ASEAN-EU relations and the United Nations.