Vietnam and Finland have enjoyed fine traditional relations of friendship and fruitful cooperation in various fields since the two countries established diplomatic relations on 25 January 1973. Over 40 years, the relationship between Finland and Vietnam has matured and widened. Political visits have been complemented by high level business and official delegations, as well as by visits of regional leaders. On the occasion of the New Year 2013, the Vietnam Business Forum interviewed H.E. Mr Kimmo Lähdevirta, Ambassador of Finland to Vietnam, about the bilateral relations over the past years. Nguyen Mai reports.
Would you please tell us about the milestones and achievements in the diplomatic and trade relations between Vietnam and Finland in recent years?
The first milestone was on 28th December, 1972, when Finland recognized the then Democratic Republic of Vietnam. Diplomatic ties were established on 25th January, 1973 – two days before the signing of the Paris Peace agreement. The Embassy of Finland in Hanoi was established in 1974.
During the 40 year relationship, ties between Finland and Vietnam have matured and widened. Political level visits have been complemented by high level business and official delegations, as well as by visits of regional leaders.
Vietnam has been one of the long term partner countries of Finnish development cooperation.Since 1973, Finland has assisted Vietnam with about US$400 million. Finnish innovations and expertise, in water, forestry and clean-tech, have demonstrated their value in Vietnam. Coupled with grant aid and concessional credits, Finnish know-how has made important contributions to the development of Vietnam, such as the water supply systems in Hanoi and Haiphong. The concept “Finnish water”, born in these cities during the 1990’s, expresses well both the sentiment and results of the cooperation.
Presently our bilateral development cooperation programs focus on water and sanitation, forestry and innovations. But we also assist, for example, in anti-corruption work, development of the private sector, green growth and work to limit the effects of climate change.
Trade and commercial relations between Finland and Vietnam have also developed steadily. About 60 Finnish companies are represented in Vietnam. According to Vietnamese statistics, Finland ranks 26th out of 96 foreign investors to Vietnam, with projects worth altogether some US$335 million.
Main investments are in the fields of information and communications technology, packaging industry, carpentry and chemicals. The biggest investment is the factory being built by the Nokia Corporation in Bac Ninh Province, and another important production facility is the packaging plant of Huhtamäki Group in Binh Duong Province, operational since 2004.
In 2011, Finnish exports to Vietnam were worth some 65 million euro (US$83 million) and Vietnamese exports to Finland about 117 million euro (US$149 million). Main export categories from Finland have been machinery and appliances, as well as steel. Main exports from Vietnam to Finland have been clothing and textiles, shoes and various ready made goods. The Free Trade Agreement being negotiated between the EU and Vietnam is likely to increase trade also between Finland and Vietnam.
Could you please tell us about the 40th anniversary of the two nations?
The first event of the year is the jubilee reception in Hanoi on 24 January. On the next day, messages of congratulation will be exchanged between the State and Government leaders.
For the rest of the year, the Embassy has planned a programme containing both cultural events and seminars related to education, innovations, forestry, water and sanitation.
A key cultural event is the touring exhibition of Finnish poster art, which comprises of 100 Finnish posters since the beginning of the 20th century. The exhibition contains works by some of the most important Finnish graphic and other designers, and it will travel to several cities in Vietnam during coming year. It’s put together by the Lahti Poster Museum, which has organized an internationally recognized poster biennale since the mid-1970’s.
In the near future, what does Finland plan to do to promote investment and trade relations with Vietnam?
For this year, we are planning an education seminar together with MOLISA and MOET, with the aim of presenting Finnish capabilities and building partnerships between the institutions. In addition to that, Finland has several tools for developing economic relations between countries:
Finpro, the export promotion organization of Finland, which also forms the Commercial Section of the Embassy, offers concrete assistance to Finnish companies in their internationalization process.
Finnfund (Finnish Fund for Industrial Cooperation Ltd.) is a development finance company that provides long-term risk capital for private projects in developing countries. Apart from co-investing with Finnish companies they can finance ventures that use Finnish technology, cooperate with Finnish partners on a long-term basis or generate major environmental or social benefits.
The Finnish Business Partnership Programme’s (Finnpartnership) mission is to increase commercial cooperation and promote business partnerships between companies in Finland and in developing countries and help to achieve positive outcomes in developing countries. Vietnam is one of their key target countries.
The Innovation Partnership Program (IPP) that Finland and the Ministry of Science and Technology of Vietnam run together aims at building an innovation system in Vietnam. A key part of the program is to also support the development of Vietnam’s private sector and to build partnerships between Finnish and Vietnamese institutions and companies.
I would like to mention also that Finnair, the national carrier of Finland, is planning to open a new, direct route between Hanoi and Helsinki in June this year. I think it will help a great deal in bringing our businesses and people closer together!
On a larger scale I believe that the Free Trade Agreement being negotiated between the EU and Vietnam – which Finland warmly supports – is likely to further increase trade between our countries.
The Embassy and Finpro will do their best to promote investment and trade between Finland and Vietnam. I hope Vietnamese authorities will do likewise, for example by making the business environment more transparent and predictable. However, in the end it is, of course, up to the businesses to decide.
Would you mind sharing something about Finland? What in Vietnam are you most impressed by?
Finland is a Nordic country, independent since 1917. It is located between Sweden and Russia, with a population of about 5.3 million. It has been a member of the European Union since 1995 and is a member of both the Schengen and the euro area.
The land area of Finland is about the same as Vietnam’s, but there are about 100,000 islands and 190,000 lakes in Finland, and almost 70 percent of the country is covered with forest. Seasons are very varied, with temperatures generally ranging in the summer between +15 and +25 degrees Celcius and in the winter between 0 and -25 degrees, with plenty of snow.
Because of the northern location of the country, summer days are very long and there is plenty of light also during the nights. People like to stay outside and many of them spend a lot of time in their countryside cottages, often located on a lake shore. Most Finns go to sauna every week, whether they live in the cities or in the countryside.
Winter days are on the other hand very short and in northern Finland the sun does not rise above the horizon at all for a couple of months! People love to do cross country skiing and other winter sports.
The most popular holidays are Christmas in December and Midsummer in June. Another important day of celebration is Vappu, or First of May, as it is considered as the start of the warmer season, whatever the weather may be during the day! Another very important day is, of course, our Independence Day on 6th December.
Our education system scores well in international rankings. Its major strength is the guarantee of equal learning opportunities regardless of social background. But no competitive system is made without the high quality education for teachers. Other significant features in the Finnish school system include the “learning by doing” attitude.
Finnish know-how in the education sector offers remarkable opportunities also for Vietnamese. In recent years about 750-800 Vietnamese university students have been studying annually in Finland, forming the third largest group of foreign students. In addition to that, many Finnish universities have cooperation programs with their Vietnamese counterparts.
Finland is also the least corrupted country in the world, together with Denmark and New Zealand, according to the newest study of Transparency International. We try to be open, innovative and competitive also in global standards.
In Vietnam I have been most impressed about the forward looking and positive attitude of people. Of course, the economic and societal development of the country has also been very impressive. If the necessary structural reforms in the economy are carried out, I see a bright future for the country!
Thank you very much!
Vietnamese
