Prime Minister Nguyen Tan Dung and his wife are due to visit the Republic of France from September 30 to October 3 at the invitation of his French counterpart Francois Fillon. This is the first visit by the Vietnamese Prime Minister after the two countries elected new heads of State, new National Assemblies and new Governments.

PM Dung’s visit takes place at a time when Vietnam continues to make important achievements in renewal and integrate deeper into the world economy. Vietnam’s international position has been raised in the wake of its entry to the World Trade Organisation (WTO) and successful organisation of the 14^th APEC Economic Leaders’ Meeting.

Since the establishment of diplomatic ties on April 12, 1973, relations between Vietnam and France continue to develop positively.

Over recent years, both countries have exchanged many high-level visits, through which French leaders have expressed their wishes to further boost multifaceted cooperation with Vietnam, particularly in economics, culture, education and training while attaching great importance to Vietnam’s role and position in the region. Vietnam has made full use of France’s leading role in the EU in order to successfully organise the 5^th Asia-Europe Meeting and consolidate Vietnam-EU relations. France also voiced its support for Vietnam’s admission to the WTO and for its bid for a non-permanent seat on the UN Security Council for the 2008-2009 term.

The two sides have agreed to promote Vietnam-France relations on the basis of their time-honoured friendship and long-term, reliable and comprehensive cooperation for the 21^st century. Strategic dialogue has taken place and has become increasingly substantial. During the visit to France by Party leader Nong Duc Manh in 2005, both sides decided to establish the high-level Vietnam-France Council for Development and Economic Cooperation. The first session of the council was held in October, 2006 in Paris and the second is due to take place this Autumn in Hanoi.

In terms of development assistance, Vietnam is one of the few countries, which now enjoys three channels of financial assistance from France, including ODA funding from the State budget, preferential loans from the French Development Agency (AFD) and the Priority Solidarity Fund (FSP). France is Vietnam’s second bilateral donor and always takes the lead among EU nations in providing ODA funding for it. So far, Vietnam has received a total capital funding of 1.5 billion Euros from France.

The two sides have signed a framework document on partnership in which France has pledged to provide 1.4 billion Euros in aid for Vietnam during the 2006-2010 period. 

France has set out its plans for mid-term cooperation with Vietnam with a focus on five priority areas including, law and policy; education and research, cultural exchanges and knowledge transfer; support for economic restructuring; poverty reduction and social improvements.

In terms of economic and trade ties, in recent years, two-way trade turnover has seen a continual annual increase of 10 percent, making France Vietnam’s second most important partner in the European market. Last year, total trade value between the two countries reached US$1.2 billion

Vietnam is in export surplus. The country mainly exports to France footwear, garments and textile products, wooden products, fine arts and handicrafts, aquatic and agricultural products while it imports machinery, civil aircraft, medicines, chemicals and dairy products.

In terms of investment, France ranks first among European countries and ninth among 77 countries and territories investing in Vietnam. To date, France has 187 ongoing projects with a total capitalisation of US$2.38 billion. Projects focus on the services sector, which accounts for 50 percent of investment capital, industry (37 percent) and agriculture.

Cooperation in the fields of culture, science and technology between the two countries has been constantly developed. France spends an annual budget of 10 million euros mainly on language teaching, administrative reform, legal affairs, finance, banking, and advanced training in economic management, law and aviation in Vietnam.

Cooperation in science and technology entered a new period of development after Vietnam and France signed an agreement to cooperate in science and technology in March 2007.

In addition, localities between the two countries have also worked well together, with 52 French districts becoming partners with 54 of Vietnam’s provinces and cities. Small projects have been implemented effectively, meeting the direct demands of local people.

As members of the French-speaking community - Francophonie, Vietnam and France conduct many cooperative activities within the organisation, particularly in teaching French, university lecturing and parliamentary activities.

Tripartite cooperation between Vietnam, France and some African countries such as Mali, Burkina Faso, and Senegal in agriculture and health has yielded effective results and received a warm welcome from the beneficiary countries.

The visit to France by Prime Minister Nguyen Tan Dung aims to affirm Vietnam’s policy of attaching importance on the position of France, boosting economic relations and increasing cooperation in trade, investment, technology transfer and development assistance. The visit provides a good chance for Vietnam to increase its relationship with the European Union as France will hold the EU presidency in the second half of 2008.

On the occasion, Vietnam and France will sign a number of agreements and contracts. The Vietnam Chamber of Commerce and Industry, in cooperation with the Vietnam embassy in France and some French partners, will organise “Vietnamese days in France”. These activities are expected to promote Vietnam’s land, its people, and business environment to French business and people with a view to attracting investment and tourism from France and the EU to Vietnam, as well as boosting economic relations between Vietnamese, French and EU businesses.