It is only a technicality, said the EC President, who began an official visit to Vietnam on November 25, during the talks with Mr Dung.

He said he highly values Vietnam’s socio-economic development achievements over the past 20 years of implementing the Doi Moi (Renewal) process, particularly in poverty reduction and international economic integration.

He expressed his belief that the Southeast Asian country will continue to make great strides in development in the future and that the EU has committed to providing aid worth 304 million Euros for Vietnam in the next seven years.

For his part, PM Dung welcomed President Barroso’s visit to Vietnam and appreciated the European Union’s assistance to the country. He said the EU recently provided Euro 2 million in relief aid to flood victims and is considering another sum of aid to local residents in the central region who are combating the violent rising floodwaters.

Vietnam attaches great importance to developing cooperative ties with the EU, said Mr Dung.

He said the Vietnamese government has approved a plan of action with the EU aimed at raising two-way trade to US$15 billion by 2013. 

Currently, the EU is Vietnam’s largest trade partner, making up 17 percent of the country’s total trade exchange with foreign countries. Two-way trade fetched nearly US$10 billion in the past 10 months and is expected to reach nearly US$12 billion by the end of the year.

By September 2007, the EU invested in 640 projects in Vietnam with a combined capital of nearly US$8.5 billion. The industrial sector attracted more than 330 EU-funded projects, representing 58 percent of the group’s total investment capital in Vietnam. 

To promote bilateral ties in the coming years, PM Dung proposed setting up a mechanism for annual high-level meetings between Vietnam and the EU, maintaining regular consultations at the Foreign Ministerial level, increasing the efficiency of the Vietnam-EU Joint Committee, encouraging European businesses to invest in Vietnam, and considering lifting trade barriers for Vietnamese goods.

He welcomed the start of negotiations for the Vietnam-EU comprehensive Partnership and Cooperation Agreement during Mr Barroso’ visit and expressed his belief that the agreement will lay an important legal foundation for bolstering Vietnam-EU relations in the near future.

At a press briefing after the talks, Mr Barroso said that the EU is willing to help Vietnam overcome challenges facing the nation. 

Negotiations for new bilateral agreement launched

Later host and guest jointly announced the launch of negotiations for a comprehensive partnership and cooperation agreement between Vietnam and the EU.

The agreement affirms the traditional links of friendship and the close historical, political and economic ties which unite Europe and Vietnam, on the basis of the respect for universal principles of the UN Charter and international law, the rule of law, human rights, democracy, sovereignty, equality, as well as mutual respect and mutual benefit, for the sake of peace, cooperation and prosperity in the two regions and the rest of the world. 

It will allow Vietnam and the EU to deepen cooperation and increase the exchange of views in areas of mutual concern such as development cooperation, trade and investment, science and technology, culture, education, tourism, labour, environment, energy, transport, administrative reform, justice, security and liberty. It will also help to enhance mutual understanding and cooperation between the two sides and to address global challenges such as climate change, terrorism, weapons of mass destruction, poverty and epidemics.

The agreement will furthermore facilitate deeper economic and commercial integration between the European Union and Vietnam preceding a future Free Trade Agreement between the EU and ASEAN countries. It will also lay the basis for any future bilateral sectoral agreement in other relevant areas.