Vietnam-EU Pledge to Further Boost Bilateral Ties

 

Ferrero-Waldner’s visit to Vietnam took place when the Vietnam-EU bilateral ties are developing impressively. Two-way commercial and economic relations have developed stably. Being the world’s second largest market, the EU is Vietnam’s top economic partner. Two-way trade reached 7.4 billion euros in 2005 and EU nations have invested 4 billion euros in Vietnam to date.

 

In 2004 and 2005, the EU was the largest non-refundable sponsor of Vietnam. Averagely, the European Commission (EC) sponsored 40 million euros a year, mainly for health and education. Together with the Paris Declaration on Sponsorship Efficiency, the EU’s aid always complies with the Vietnam Socio-economic Development Plan.

 

When asked about the General Development Strategy with the EUproposed by Vietnam last June, Ferrero-Waldner said the EC and the EU member countries highly appreciated the initiative of Vietnam and its reception of EU suggestions during the compilation process.

 

Benita Ferrero-Waldner stressed that the General Project on Relations with the EU is clear evidence of the increasing concerns and importance that Vietnam pays for the EU. “We will exert utmost efforts to realise the objectives of the project and I believe that we will witness the future bilateral relation development both in depth and dimension. This will possibly make the EU consider the upgrading of the current agreement to a higher level,” Benita Ferrero-Waldner said.

 

As regards the antidumping tax imposed on several Vietnamese leather shoe products, Benita Ferrero-Waldner expressed sympathy toward Vietnam but affirmed that the EU’s action is in line with the WTO practices. She added, two thirds of European people accepted to pay higher prices because they wanted to observe the WTO regulations and a third backed the developing countries as they wanted to create conditions for these nations to develop. Mr. Peter Mandelson, the EU Trade Commissioner, has introduced various improved initiatives like gradual taxation policies. The tax rate will be increased gradually to the full rate by October 2006. At this point of time, the EU will introduce the last tax rate as well as solutions to be applied in the future.