Vietnam-France Economic Cooperation Promoted

Vietnam and France established diplomatic relations on April 12, 1973. Ever since, the bilateral relationship has continued to develop. Since 1989, France has helped Vietnam in settlement of debts at the Paris Club, giving up FF1.215 million in FF 2.200 million of Vietnamese debt and disbursing FF34 million of Vietnamese accounts in French Treasury since 1954. France has also helped improve Vietnamese relations with international financial institutions. In 1994, France resumed export credit COFACE for Vietnam. The two countries have exchanged visits of high-ranking delegations to promote cooperation in all fields. France is leading other European countries in all three areas: trade, foreign investment and development cooperation.

 

Trade relations started in 1990 with growth rate of 15 per cent a year before 2001 and 10 per cent in recent years. Vietnam continues a trade surplus and France is the second biggest trade partner of Vietnam among EU members, after Germany. In 2004, the two-way trade turnover was US$1.2 billion. Main Vietnamese exports are garments, footwear, wooden furniture, handicraft articles, and agricultural produce. While main imports were machines and equipment, pharmaceuticals, chemicals, and dairy products. The bilateral trade is stable in items and volume but with low growth. The potentials are big and require better promotion for trade and investment.

 

Regarding investment, France has shown greatest interest and is leading other European countries in direct investment in Vietnam. France started direct investment in Vietnam in 1988 and by May 2005, there are 145 projects in operation with registered capital of US$2.14 billion, 7^th position among investors in Vietnam. French FDI focuses in industry, communication and transport, post, hotel, tourism, agriculture-forestry-fisheries in 24 out of 64 provinces and cities. Investments are in the forms of business cooperation (31 per cent), BOT (29.6 per cent) and on average of US$16.24 million a project.

 

In development cooperation, Vietnam and France have developed “Relations of traditional friendship and reliable, long-standing and all-round cooperation in 21^st century”. France was one of the first countries to provide ODA to Vietnam and leads other European countries in amount, issuing soft credits of over Euro 1 billion since 1990. The assistance increased on average of Euro 100 million a year. France supported the renovation policy of Vietnam in five areas including law and policy, education and research, cultural exchanges and knowledge transfer, economic transformation and poverty reduction, and social welfare.

 

The Vietnam-France forum and dialogue on economy and finance since 2000 have encouraged scholars of the two countries to increase their cooperation. For instance, on July 10, 2006, at VCCI-HCM, a seminar was organised by VCCI and CCIFV. Participating on the French side were Mr Nicolas Wasnery, French Consul General in HCMC, Mr Philippe Serene, Chairman of French Chamber of Commerce CCIFV, Mr Eric Flambar, Director CCIFV (Vietnam) and over 30 businesses from France and EU. On the Vietnamese side were Ms Ton Nu Thi Ninh, Vice-Chair, National Assembly Foreign Affairs Committee, Mr, Vo Tan Thanh, Director, VCCI –HCM, Mr Nguyen Huu Tho, Director General, SaigonTourist and over 50 Vietnamese businesses. An agreement was signed between VCCI and CCIFV to promote business cooperation in French and EU markets.