The largely diplomatic move entails no binding commitments but carries political weight at a time when both the EU and Vietnam are seeking to expand and deepen international ties as they both face up to higher levies on their exports to the US.

The upgrade is “a historical milestone underlining the great achievements that the two sides have made,” Vietnam’s President Luong Cuong said at the start of a meeting with the European Council president Antonio Costa in Hanoi.

A free trade agreement between Vietnam and the 27-country EU entered into force in 2020.

Costa, who arrived in Hanoi after the EU struck a major trade deal with India on Tuesday, said the upgraded partnership “highlights the importance we attach to the region and to Vietnam’s growing role”.

The elevation of ties to Vietnam’s highest level, the same as the US, China and Russia, usually involves more frequent high-level meetings.

It is also expected to generate more cooperation between Hanoi and Brussels in multiple fields, including critical minerals and technology, according to a draft joint statement seen by Reuters and an official involved in the process.