OVERVIEW OF BILATERAL RELATIONS

BETWEEN VIET NAM AND NORWAY

I. Political relations:

Vietnam and Norway established diplomatic relations on November 25, 1971. Norway became one of the first Western countries to form their diplomatic ties with the Democratic Republic of Vietnam.

In 1978, Viet Nam set up embassies Oslo but then closed in 1982. Bilateral relations have been for some time interrupted. The Vietnamese side is currently doing its best to reopen the embassy in Norway in early 2010.

In 1996, Norway officially opened permanent embassy in Hanoi during the visit of Prime Minister Gro Harlem Bruntland to Vietnam.

During the past 40 years, bilateral relations have registered positive development and gradual in-depth in many areas: politics, economics, culture and social issues. The two countries have exchanged many delegations at all levels, even at the highest level. The Vietnamese side: Prime Minister Pham Van Dong (1977), Prime Minister Võ Văn Kiệt (1995), Prime Minister Phan Văn Khải (1999), President Nguyễn Minh Triết (6/2008). The Norway side: Prime Minister Gro Harlem Brundtlan (1996), the King and Queen of Norway (2004).

The two sides have conducted effective cooperation mechanisms like Human Rights Dialogue and Political Consultations. Human rights dialogue has been held annually for eight rounds (four in Oslo in 11/2001, 5/2004, 1/2007, 5/2009 and four in Ha Noi 1/2003, 11/2005, 4/2008, 11/2010); on the basis of equality, mutual respect, non-interference, non-imposition to enhance understanding and cooperation in specific areas. The annual Political Consultations between two Foreign Ministries at deputy ministerial level have undergone 3 rounds in Ha Noi in March 2006, April 2008, October 2010 and one in Oslo in 4/2009.

Norway has actively supported Vietnam in the renewal process, hunger elimination and poverty alleviation, international integration and paid attention to issues of democracy, human rights, religion in Vietnam but with different approach than the U.S., EU and other Western European countries with no pressure on aid and bilateral relations, under the spirit of cooperation and construction. Norway has a number of experiences in various forums and international organizations (like UN, WTO, World Bank ...), so the bilateral cooperation has been well carried out in these multilateral channels.

II. Economic ties

1. Trade  

Two-way trade turnover tends to increase rapidly but still small in scale and not commensurate with the potentiality and fine political relations between the two countries, in which Vietnam enjoys trade surplus . The main Vietnamese exports to Norway consist of seafood, textiles and footwear, travel bag, vegetables, coffee, tea, spices, rubber, wooden products, essential oils while Vietnam imports from Norway are the main mechanical products, telecommunication equipment, means of transportation, chemicals, fertilizers, plastics and metal. In March 1994, Norway signed an agreement on textile and garment with Viet Nam under quotas. In 1998, Norway removed quota regime for textiles and garments in Vietnam. In April 2005, Norway established a representative office of Telenor - a big Norwegian IT corporation. In November 2006, the two sides signed an MOU to support trade cooperation between Vietnam and Norway and set up the Working Group to promote the bilateral economics and trade. Norway is one of the countries that soon concluded  WTO negotiations with Vietnam.

Since 2003, bilateral trade turnover has registered significant increase. Export turnover in 2007 doubled compared with 2004 and import turnover tripled compared with 2004. In recent years, two-way turnover tends to increase but still small compared to the potentialities of the two countries. In 2007, bilateral turnover totaled over 70 million dollars compared to 61.58 million in 2006 and in 2008 reached 170.53 million.

Bilateral trade turnover from 2000 to 2009

unit: million USD         

                                                               (Source: Viet Nam Customs Agency)       

2. Investment

Until November 20^th 2010, Norway has conducted 25 investment projects in Vietnam with total registered capital of 84m USD, ranking the 39th among 93 countries and territories investing in Vietnam. The yeare 2008 was a difficult time for many Nordic economies; therefore, Norway has withdrawn a number of unfeasible projects in Vietnam.

Norway invests mainly in manufacturing industry with a 7 projects totaled 40,5m USD in registered capital; second area of focus is agroforestry and fishery with 4 projects with a total registered capital of 23,5m USD and last but not least, area of training and education, transportation and warehouse, information and telecommunication[1].

Capital investment of projects from 100 per cent foreign-capital enterprises make up of 59,9 per cent of the total capital while the remaining projects are carried out in the form of joint ventures. Vietnam enterprises have yet invested in Norway.

III. Development cooperation (ODA)

Vietnam-Norway cooperation was resumed since the two countries signed the Framework Agreement on Development Cooperation in October 1996. Previously, Norwegian aid policies focused primarily on African countries while aid to Vietnam stemmed from Regional Aid Fund with an annual grant of 5 to 6 million USD. However, these policies tend to change with the increasing aid commitments to Vietnam. In fiscal year 2008-2009, the Government of Norway pledged 10 million USD annually for Viet Nam to support the prioritized areas in Viet Nam’s  development policy like agricultural and rural development, aquaculture , oil and gas, education and training, economic management and administrative reform. At current, Vietnam is a key partner and prioritized aid receiver of Norway in Southeast Asia. Norway's total aid for Viet Nam until now comes up to around 200 million USD. The Norway-funded projects are geared towards the fields of education, economic development, environment, gender equality, HIV/AIDS and state management (according Developemtn Cooperation Strategy 2008-2009). At the CG meeting in December 2009, Norway continued its commitment of 10 million USD for Viet Nam in the fiscal year 2009/2010.

The volume of Norwegian aid is though small, the procedures and processes for receiving aid are flexible, i.e right after the Government of Norway announced commitment of aid to Vietnam, the following process will be made in accordance with the Vietnamese regulations.

Overall, though the Norway-funded projects are small in scale (under 10 million USD per project) but the disbursement rate high (90 per cent). These projects have done benefited the people. Typical projects like Rural Development project in Quang Tri, Construction of boarding schools to poor children in Lai Chau province, Construction of primary schools in three flood-stricken provinces Quang Tri, Thua Thien Hue and Quang Nam etc. have positively contributed to poverty elimination and hunger alleviation in remote areas and among ethnic minorities.

To diversify forms of financing and increase the scale, Norway has provided non-binding preferential credits in support of investment projects that serve the priorites of the two countries’ policies. Conditions for credit loans of Norway are rather appealing; therefore, they attract close attention of the localities.

IV. Cooperation in culture, tourism, education, defence and security

          In culture: The two sides have not signed the Agreement on culture. Due to geographical distance and limited budget, there are almost hardly any cultural activities of Viet Nam in Norway.

          The two sides also organize cultural exchange activities such as exhibitions, exchange of artists. On the occasion of 35th establishment of diplomatic relations (25/11/1971-25/11/2006), the two sides coordinated to host a number of events such as exhibitions, seminars on Gibler Ibsen (eminent Norwegian playwright) with famous play "Dollhouse" being transmitted to viewers by the acting of the Vietnamese artists. Currently, Norway implemented 02 small-scale projects in cultural cooperation in Vietnam: a) project on exchange of music between the Ultima Contemporary Music Festival, the Oslo with the Symphony Orchestra Vietnam, Ho Chi Minh National Conservatory of Music 2007-2009; and b) training collaboration between the Ha Noi Academy of Theatre and Cinema and Norwegian Theatre Academy and National College of cinema of Norway from November 2007 to December 2009.

          In tourism: Viet Nam has unilaterally applied visa exemption for Scandinavian tourists to Vietnam within 15 days since May 2005, including Norwegian citizens also and to overseas Vietnamese since September 2007. The tourist influx from Norway has seen a remarkable increase in recent years but still fall behind expectation in comparision with other Scandinavian countries. In 2008, Viet Nam received 15.664 Norwegian tourists, marked by a 33 per cent rise against 2007.

          In training and education: Norway offers scholarships to Vietnamese students under the international scholarship programs, support to capacity building and training for lecturers and researchers in universities and Research Institute of Vietnam (Nha Trang University, University of Agriculture I, Ha Noi University of Technology). Norway has annual NORAD scholarship program for bachelor and master's degree in Norwegian universities or in some other countries, including Vietnam.

          In defence and security: the Vietnamese Ministry of Public Security has set up limited cooperation with the concerned authorities of Norway, mainly in the framework of Human Rights Dialogue. In November 2007, Norwegian Ministry of Justice Delegation headed by Assistant Minister of Justice worked with the Ministry of Public Security to discuss orientations and measures to promote bilateral cooperation with the focus on exchanging and sharing information on criminals, human trafficking and capacity building. From 2007-2008, Norway helped train a number of police staff in human rights issues and police officers to UN peacekeeping missions in conflict-stricken countries and regions.

IV. Vietnamese community in Norway

          There are currently 20.000 Vietnamese in Norway, the largest Vietnamese community in Scandinavian area, including 90 per cent being naturalized in Norwegian nationality, 60 per cent having a stable job, most of of them running small businesses, restaurants or working as a white-collar workers. The community is made up of 3 group: a) leaving the country prior to the year 1975; b) after the year 1975 and between 1978-1979 and c) in the 90s. The Vietnamese community in Norway appears to be still reserved with the situation in Viet Nam and keeps a certain distance with the community in the country due to the lack of information about the country. Most of the overseas Vietnamese in Norway are delighted at the reopening of the Vietnamese Embassy in Oslo so that these Vietnamese can share a common voice with those in Viet Nam and their benefits can be better taken care of and protected legally.

          In general, the Vietnamese in Norway have steady and stable lives, being diligent, well integrated and compliant with the life and legal systeam of Norwegian society.

 V. List of signed bilateral agreements  

                                                                    April 2011