“Lithuanian President’s visit opens a new chapter in bilateral cooperation with Vietnam”

DNHN - This assessment was shared by Mr. Arunas Karlonas, Commercial Affairs Counsellor of the Lithuanian Embassy, regarding the potential cooperation between the two countries following the recent official visit of the Lithuanian President to Vietnam.

Vietnam – A highly regarded partner in Lithuania’s strategic outlook

President of the Republic of Lithuania, Gitanas Nausėda, along with the First Lady and a high-level Lithuanian delegation, concluded an official visit to Vietnam from June 11–12. This marked the first visit by a Lithuanian head of state to Vietnam in many years and was a highly significant diplomatic event, reflecting the mutual appreciation of the traditional friendship and multifaceted cooperation between Vietnam and Lithuania. It also opened a new chapter in bilateral relations amid a rapidly shifting international landscape filled with both opportunities and challenges.

During this important visit, in an interview with the Business and Integration Magazine, Mr. Arunas Karlonas, Commercial Affairs Counsellor of the Embassy of the Republic of Lithuania, stated: “The Lithuanian President’s visit marks a new chapter in bilateral cooperation with Vietnam. It sends a strong message to the country and people of Vietnam that Lithuania considers Vietnam a very important partner. Vietnam is also a key partner of the European Union (EU), of which we are a member, making this all the more meaningful to us. Bilateral trade is on the rise, and naturally, the trade surplus favors Vietnam. This is understandable, as Vietnam is a larger country with a bigger population and produces many goods for export to Lithuania and other EU countries”.

Mr. Karlonas highlighted the significant trade potential between the two countries, especially in the context of rising bilateral trade volume, even if the surplus leans toward Vietnam — a situation he deems logical given Vietnam's larger economy, population, and export capacity.

Illustrating the growing interest from Lithuanian businesses in the Vietnamese market, he noted: “We just held the Vietnam–Lithuania Business Forum with over 150 participants. Businesses from both sides engaged in effective discussions. The core message is that Lithuania is ready to cooperate with Vietnam in sectors such as food and beverages, pharmaceuticals, and high-tech industries including laser components, robotics, and aerospace”.

Trade Agreements as keys, but businesses must open the doors

During this visit, President Nausėda expressed delight at Vietnam’s socio-economic achievements and emphasized that Vietnam is one of the fastest-growing economies in the region. He reiterated that Vietnam is among Lithuania's most important partners in Southeast Asia and conveyed a strong desire to deepen cooperation in areas of mutual strength, while pledging Lithuania’s support for enhancing Vietnam–EU relations.

Further analyzing the prospects for cooperation in an interview with the Business and Integration Magazine, Chief of International Affairs – Ministry of Agriculture of Lithuania, pointed out that food and beverages could be a bridge sector linking Vietnam and the EU. He explained: “Lithuania has a strong agricultural industry within the EU. We’re very pleased with the EU–Vietnam Free Trade Agreement (EVFTA), which greatly boosts trade in agricultural products, food, and several other areas”.

According to Mr. Venckus, it is crucial to establish trade relationships grounded in rules, transparency, and trust. These are also values Lithuania upholds in all its cooperative agreements, including those with Vietnam. “We believe that trade relations between the EU and Vietnam will continue to grow, as the potential is tremendous”.

Beyond trade, Mr. Venckus emphasized the importance of sustainability and environmental protection in the EU’s agriculture sector, particularly under the guidance of the European Green Deal, which aims for net-zero emissions by 2050.

“We are promoting environmentally friendly farming models such as vertical agriculture, no-till cultivation to retain CO2 in soil, new organic fertilizers, and a gradual reduction in chemical fertilizers. Organic farming is also expanding due to rapidly rising demand. The key objective is to increase the share of organic products in overall output”.

Notably, Lithuania also requires its trade partners to comply with strict environmental standards, including carbon emission traceability throughout the production chain.

Adding to this, Mr. Karlonas shared that a Lithuanian company producing organic fertilizers has submitted an application to export its products to Vietnam. “They already have clients and Vietnamese farmers are ready to buy. This visit by our President and Ministers sends a clear message: we are ready for deeper cooperation with Vietnam”.

“We hope the licensing procedures will be expedited so the products can enter the Vietnamese market. The EU imposes high environmental standards, which raises production costs, but in return, consumers get the highest-quality products”, Mr. Karlonas explained.

However, Mr. Karlonas was candid about one of the key challenges in implementing the EVFTA. “The issue lies in standards. A free trade agreement only sets a legal framework. But actual implementation still requires permits. For example, if we want to export beef or other animal products, we need approval from Vietnamese authorities. The agreement is like a key, but each country and business must open the door themselves. You can’t just drop off goods. You need to find a partner, an importer, a buyer”.

Nonetheless, he believed two-way trade will continue to grow, as the legal foundation is in place and businesses just need more time to adapt. “Vietnamese importers also need to be more proactive. I’m confident trade between the two sides will expand. Businesses need time to adapt. The world is facing many challenges right now, but in the long run, this trade relationship will benefit both the EU and Vietnam”, Mr. Karlonas emphasized.

Hopes for two-way investment between Vietnam and Lithuania

Vietnam is increasingly asserting itself as a strategic destination in Asia. In recent years, a wave of visits by world leaders - from the U.S., Germany, and France to most recently President Gitanas Nausėda - has underscored the growing international interest in Vietnam. Beyond diplomacy, these high-level visits open up concrete and practical cooperation opportunities between Vietnam and its partners.

Mr. Karlonas affirmed that this marks an important starting point, laying the groundwork for bilateral cooperation across various sectors. According to him, Lithuania is prioritizing cooperation with Vietnam in three key areas: food and beverages, renewable energy, and high technology.

“Food and beverages are a top priority. Second is energy, especially renewables, a field in which Lithuania has considerable experience and is ready to share. Third is technology. We are very pleased to have signed a cooperation agreement with Vietnam’s National Innovation Center and have had many productive and engaging discussions”, Mr. Karlonas emphasized.

Lithuania is not only open to broad technological cooperation but is also willing to share its deep expertise in areas such as fintech, information and communication technology (ICT), and life sciences. In return, Vietnam also has its own strengths, especially in agricultural technology and blockchain.

“You’ve created a unicorn in the blockchain sector. Even though the company is now based in Singapore, the product was developed in Vietnam - that’s a Vietnamese achievement”, Mr. Karlonas remarked.

From an investment perspective, Mr. Karlonas believes both inbound and outbound investment between the two countries is vital. With its impressive growth rate, Vietnam is quickly becoming an attractive destination for international investors. “I believe that in the next 10–15 years, Vietnam will make remarkable progress and become a must-partner, just as many now view China”, he noted.

In fact, some Lithuanian businesses have already begun exploring opportunities in Vietnam. For example, a Lithuanian dairy company is planning to build an ice cream factory in Vietnam, with two options under consideration: a joint venture or acquiring a local business. This is seen as a large-scale project, marking a strategic move by Lithuanian companies into the Southeast Asian market.

Conversely, Lithuania also welcomes Vietnamese firms to expand their investment in Europe through Lithuania. The presence of VinFast, the Vietnamese automotive brand, in Lithuania is a prime example. “Even Lithuania’s Deputy Minister of Transport mentioned seeing VinFast cars being test-driven in Lithuania. This shows VinFast is already paving the way into the European market”, Mr. Karlonas revealed.

Despite the immense potential, Mr. Karlonas pointed out that there is still a gap in business linkages, especially from Vietnam to Lithuania. “We haven’t seen many Vietnamese business delegations visiting Lithuania. You need to take the initiative, just as we’ve come here to explore, meet partners, exchange ideas, and test products”, he said.

This isn’t unique to Lithuania. Many other European countries share a similar pattern: European businesses are active in Vietnam, but the reverse is limited. That’s why Mr. Karlonas strongly advocates for organizing trade promotion delegations to Europe so Vietnamese businesses can directly experience the business environment, better understand consumer behavior, tastes, and European lifestyles.

Speaking on expectations from the Vietnamese government regarding business environment improvement and promoting bilateral cooperation, Mr. Karlonas shared: “Many foreign companies present in Vietnam see a bright future and believe the country is on the right development path. This is a positive sign, reflecting the international business community’s confidence in Vietnam’s economic potential and direction”.

“Vietnam is an open economy. I also know that the Vietnamese Party and State are fighting corruption and doing many things right and effectively. Keep it up. I believe that within 10 to 15 years, Vietnam will become a global hotspot — a place where international businesses will want to invest and partner”, Mr. Karlonas concluded.

Bao Trinh - Lan Nguyen