On the occasion of "Vietnam Days'" held in France in late September and early October, Vietnam Business Forum introduces the various aspects of the bilateral relations.
I. Political relations: Traditional friendship, all-sided, long-term and reliable cooperation in the 21st century.
Vietnam and France established diplomatic relations at an ambassadorial level on April 12, 1973. The political relationship flourishes with ongoing exchanges of delegations, including top-level representatives. In May 2000, General Secretary Le Kha Phieu and in 2002 President Tran Duc Luong visited France. In October 2004, President Jacque Chirac visited Vietnam on the occasion ASEM 5. In June 2005, General Secretary Nong Duc Manh visited France and in June 2005, President of Senate Poncelet visited Vietnam.
During those visits, the French leaders reaffirmed the desire to develop multi-faceted relations with Vietnam, especially economic, cultural and educational relations, to promote the role of French businesses in the face of ever-increasing competition in Vietnamese and regional markets. They also hoped that Vietnam would facilitate investment by French small and medium enterprises in Vietnam and share the French view of the multi-polar world, and diversified culture of globalization. France highly values bilateral relations with Vietnam and refrains from provoking controversial issues on democracy and human rights. Vietnam has benefited from the French role as the driving force in the EU assisting Vietnam in preparation for ASEM 5, developing Vietnam-EU relations, supporting Vietnam’s WTO membership and the election to become non-permanent member of UN Security Council in 2008-2009.
The two sides have agreed to develop bilateral relations under the guideline “traditional friendship, all-sided, long-term and reliable cooperation in the 21st century.” Strategic dialogue between the two countries has been established and practiced. During the visit of General Secretary Nong Duc Manh in 2005, the two sides decided to establish the Vietnam-France High-level Council for Economic Cooperation and Development. The first meeting of the Council was held in Paris in June 2006 and the second meeting will be in autumn 2007.
II. Economic relations: ever developing
1. Development assistance: Vietnam ranks 7th among countries receiving French ODA.
Vietnam is among few countries receiving all three channels of French financial assistance: official development assistance from the treasury, preferential loans from the French Development Agency (AFD) and the Priority Solidarity Fund (FSP).Vietnam ranks 7th among countries receiving French ODA. So far, France has financed Vietnam Euro1.2 billion in 210 projects. French ODA to Vietnam has increased year-on-year (Euro103 million in 2002, Euro106 million in 2003, Euro334.4 million in 2004, Euro339.8 million in 2005, Euro281 million in 2006 with Euro34 million in grant aid). In September 2006, during the working visit of the French Minister in charge of cooperation and francophonie, France pledged ODA of Euro1.4 billion in 2006-2010 to finance priority projects set out in the framework document of Vietnam-France partnership 2006-2010 such as infrastructure, small and medium enterprises, agriculture and food safety, services, banking and finance.
France is committed to cooperation with Vietnam focusing in four areas of priority: legal and political reform, modernization of education and research, economic transformation, and public health for social welfare and poverty reduction.
2. Commercial relations: Vietnam trade surplus
In recent years, trade between Vietnam and France increased 10-15 per cent a year, making France Vietnam’s biggest partner in Western Europe. In 2003, two-way trade value was Euro1.3 billion (Euro890 million in Vietnam export and over Euro400 in import). In 2004, trade value was Euro1.4 billion and Vietnam export increased 10 per cent. In 2005, for the first time Vietnam hit export value over Euro1 billion, with total trade value of Euro1.5 billion. In 2006, two-way trade continued to increase by 10 per cent, reaching Euro1.6 billion.
3. Investment: France ranks first among European countries
France has been a leading investor in Vietnam, heading European countries and standing 7th among 74 countries and territories investing in Vietnam. By August 2007, France had committed to Vietnam US$2.4 billion (US$1.15 billion already implemented) in 187 investment projects concentrating in heavy industry, communication and post in 30 provinces and cities.
4. Culture, science and technology: Comprehensive cooperation
France maintains an annual budget of some Euro10 million for Vietnam in such areas as foreign language training, administrative reform, law, finance, banking, higher education in economic management and aviation. Each year, some 100 scholarships are granted in public health, urban planning and other areas. Presently, there are some 4,000 Vietnamese students studying in France.
On January 1, 2006, Vietnam permitted the establishment of representative offices of the French International Cooperation Centre on Agricultural Research and Development (CIRAD) and French Research and Development Institute (IRD). The Hue Art Festival was first organized in April 2000 with French financial support and active participation. Since then, four festivals have been organized and they have become an international cultural event.
In tourism, French tourists make up a high percentage of European and foreign tourists visiting Vietnam. In the first six months of 2007, 90,176 French tourists visited Vietnam, 42 per cent more than the same period last year. France continues to be a favourable market for Vietnam tourism.
Beside central government cooperation, local cooperation channels have also been developed and deepened. So far, 52 French administrative units have become partners of 54 Vietnamese provinces and cities with 657 projects (257 projects completed and 400 in operation), 567 French and 441 Vietnamese partners. The 6th African Cooperation Conference was held in Vietnam in 2005, the 7th Conference will be in France in October 2007.
According to Mr Pham Gia Tuc, VCCI Secretary General, “Vietnam Days in France” will promote the image and comprehensive cooperation between Vietnam and France. It focuses on introducing the Vietnamese land, people, products, businesses and investment environment, combining trade promotion, investment, tourism and cultural exchange, boosting export and attracting investment and tourists from France and the EU.
The Vietnamese delegation consists of 80 representatives from companies maintaining cooperation with France in key areas. They will meet and sign big economic agreements and contracts with French partners on this occasion.
VBF
Vietnamese
