The agreement was reached during talks in Paris on October 1 between French Prime Minister Francois Fillon and his Vietnamese counterpart Nguyen Tan Dung.

The two PMs exchanged views on bilateral and international issues of mutual concern. They noted with satisfaction the fine development of Vietnam-France relations in various fields in the framework of “traditional friendship, comprehensive, long-term and reliable cooperation in the 21st century” as agreed by the two countries’ top leaders. Two-way trade value has increased by 10 percent in recent years, reaching US$1.2 billion in 2006. France is Vietnam’s second biggest trade partner in the European Union and ranks ninth in the list of foreign investors in Vietnam.

Host and guest shared the view that as the two countries have great potential for cooperation and development, they should build a role partnership model between a developing country and a developed country in the interest of their people, and for peace, development and prosperity in the world.

They agreed to create favourable conditions for the two countries to enhance trade exchanges and investment cooperation, particularly in such fields as infrastructure development, power, education, culture and tourism. Accordingly, France will increase official development assistance (ODA) for Vietnam and open a French university in the country. A Vietnamese Cultural Centre and a French Cultural Centre will be established in their respective countries very soon to promote friendship and mutual understanding between their people. In addition, both countries will strengthen cooperation in diplomacy, national defence and civil security.

French Prime Minister Fillon said France supports Vietnam’s efforts to fully integrate into the international community and to become a non-permanent member of the United Nations Security Council for the 2008-09 term. He said France is ready to help Vietnam foster its relations with the European Union and early recognise its market economy status.

After the talks, the two PMs witnessed the signing of a number of cooperation agreement and business deals worth billions of US dollars. They included a contract to buy 10 Airbus A350-900s and 20 Airbus A321-200s worth US$3.8 billion between Vietnam Airlines and Airbus Corporation, an agreement to build the Hanoi-Nhon railway line, a letter of intent to upgrade the centennial Long Bien bridge, a contract to supply equipment for the Son La Hydro-electric Power Plant, and other contracts in the fields of banking, credit and oil and gas fields.

Later, Mr Dung met with French President Nicolas Sarkozy, who lauded the results of talks between the two PMs and said Vietnam and France should boost comprehensive cooperation in all fields, from politics, economics and sci-tech to culture and social affairs, given their untapped potential.

Mr Sarkozy voiced his support for Vietnam’s candidate for a non-permanent seat on the UN Security Council and expressed his belief that Vietnam will become an important factor in maintaining peace and promoting development in the international community.

Mr Dung conveyed State President Nguyen Minh Triet’s regards and invitation to Mr Sarkozy to visit Vietnam. Mr Sarkozy accepted the invitation with pleasure and said the visit will be arranged at an appropriate time.