Prime Minister Christopher Luxon has concluded a three-day visit to Vietnam, marking a significant step in deepening diplomatic and economic relations between the two nations. The visit, which ran from February 25-28, 2025, was timed to coincide with the 50th anniversary of diplomatic ties between New Zealand and Vietnam.
The trip saw the signing of a Comprehensive Strategic Partnership (CSP), elevating bilateral relations to the highest diplomatic level. Vietnam has only extended this status to ten countries, including the United States, Australia, and Japan. The agreement is expected to bolster trade, security cooperation, and educational exchanges between the two nations.
Trade and Investment
Economic growth was a central theme of Luxon’s visit, with both nations setting a goal of increasing two-way trade to $3 billion by 2026, up from the current $2.6 billion. Vietnam, which Luxon described as a “rising star” in the Indo-Pacific, is New Zealand’s 14th-largest trading partner, with trade between the two countries increasing by 123% since 2015.
New Zealand’s primary exports to Vietnam include dairy, fruit, and wood, while Vietnam supplies electrical equipment, travel services, footwear, and clothing to New Zealand. The business delegation accompanying Luxon included representatives from Fonterra, Zespri, Orion Health Group, Silver Fern Farms, the University of Auckland, and AUT, reflecting a broad effort to expand business collaboration.
“Vietnam represents a huge opportunity,” Luxon said. “Vietnam is the fastest growing Southeast Asian economy.”
Comprehensive Strategic Partnership
The signing of the Comprehensive Strategic Partnership with Vietnamese Prime Minister Phạm Minh Chính was a historic moment in New Zealand’s diplomatic efforts. Speaking at the signing ceremony in Hanoi, Luxon emphasised the significance of the agreement, stating that it “reflects the increasing strength of our relationship, its depth and also its breadth and our interests in working more closely together.”
Vietnamese Prime Minister Chính echoed these sentiments, noting that the upgraded partnership would enhance political trust, economic cooperation, and regional security. The CSP framework will focus on five pillars: political engagement, security and defence, trade and investment, climate change and technology, and people-to-people ties.
Luxon’s visit included meetings with Vietnam’s President Lương Cường, General Secretary of the Communist Party Tô Lâm, and National Assembly Chairman Trần Thanh Mẫn, reinforcing New Zealand’s commitment to strengthening ties at all levels of government.
New Air Route to Strengthen Connectivity
One of the most significant announcements during the visit was Vietjet Air’s launch of a direct Auckland-Ho Chi Minh City route, set to commence in September 2025. Initially offering four return flights per week, the route is expected to boost tourism, business travel, and educational exchanges between the two nations.
“I’m very pleased with Vietjet’s announcement that they will develop a new route to New Zealand, strengthening the connectivity and the people-to-people links between our two countries,” Luxon said at the announcement.
Education and Cultural Ties
Education was another key area of focus, with AUT and the University of Auckland signing new agreements with Vietnamese institutions, including a collaboration with Vietnam’s National University on artificial intelligence research. Luxon also oversaw the signing of several memorandums of understanding and scholarship agreements aimed at increasing Vietnamese student enrollment in New Zealand.
Vietnam is the third-largest source of international students in New Zealand, behind India and China. Luxon noted that New Zealand’s education system is highly regarded in Vietnam, and efforts are being made to ensure the country remains on the radar as a top study destination.
Strategic Indo-Pacific Engagement
Beyond trade and education, Luxon used the trip to emphasise New Zealand’s commitment to regional security and stability. Speaking at the ASEAN Future Forum, he warned of rising geopolitical tensions in the Indo-Pacific, stating that “the risk of conflict in our wider region has risen.”
Luxon’s comments come amid increasing military activity in the region, including the movement of Chinese warships in the Tasman Sea. While he did not mention China directly, he stressed the need for transparency in military modernisation efforts and reaffirmed New Zealand’s commitment to regional peace and security.
Looking Ahead
Luxon’s visit to Vietnam marks a significant step in New Zealand’s broader Indo-Pacific strategy. With plans for future visits to China and Indonesia, the New Zealand government is prioritising stronger economic and diplomatic engagement in Asia.
As New Zealand and Vietnam celebrate 50 years of diplomatic relations, the newly signed Comprehensive Strategic Partnership sets the stage for deeper collaboration in trade, security, education, and cultural exchange. With ambitious trade targets and new connectivity initiatives in place, both nations are poised for a new era of cooperation.