OVERVIEW OF BILATERAL RELATIONS BETWEEN VIET NAM AND FINLAND

1. Diplomatic relations:

Finland established diplomatic relations with Viet Nam in  January 25^th,1973. Up to now, Finland has always maintained its cooperation and friendship policy with Viet Nam. The Finnish Embassy was opened in Viet Nam in 1974 and the Vietnamese Embassy was opened in Helsinki in 2005.

The traditional and multi-faceted relationship between Viet Nam and Finland has developed very positively in recent years. Two countries have exchanged many high-ranking delegations.

On the Vietnamese side, there were the visits paid by Prime Minister Pham Van Dong in 1977, Prime Minister Vo Van Kiet in 1995, Prime Minister Phan Van Khai in 1999 and Prime Minister Nguyen Tan Dung in the framework of ASEM 6 in 2006, Standing Deputy Prime Minister Nguyen Sinh Hung in 2008, Deputy Prime Minister Nguyen Thien Nhan in 2009, President Nguyen Minh Triet in May 2010.

On the Finnish side, there were the visits paid by President Tarja Halonen in 2008, Former Prime Minister Matti Vanhanen in 2009, Speaker of Parliament Saulis Niinisto in January 2010, Madam Anni Sinnemaki Minister of  Labour, Employment and Environment (9/2010) and Madam Anne Holmlund Minister of Interior (8-10/9/2010). 

As a member of the EU, Finland supports Viet Nam to be granted the market economy status; and is against the imposition of antidumping duties on leather shoes made in Viet Nam and imported into the EU market.

2. Development cooperation:

Finland started to grant ODA to Viet Nam since the establishment of diplomatic ties. In January 2001, the Finnish parliament adopted a new development strategy with developing countries, in which Finland considered Viet Nam as its longstanding partner in Asia. At the meeting in May 2002, Finland pledged to continue to grant about 10 million euros in ODA a year to Viet Nam, concentrating its support on 3 main areas: water and environment, poverty reduction and capacity enhancement. Furthermore, Finland has also selected some projects for concessional credit as agreed by the two Governments. Finland pays great attention to the bilateral cooperation in fields such as high technology and clean energy, forestry… which is of Finland’s advantage. Finnish ODA to Viet Nam has continuously increased. At the CG meeting in Hanoi in December 2010, Finland pledges to allocate Viet Nam 33.92 million USD for 2011, bringing the total amount of ODA to 400 million USD. During the period of 2009 – 2012, Finland will continue to assist and support Viet Nam in the fields of poverty reduction, forestry, clean water and science-technology. Finland intends to reconsider ODA to Viet Nam to be in accordance with Viet Nam’s request, moving toward the new cooperative fields such as renovation, labour and industry policy, climate change, environment protection and renewable energy…

3. Trade and investment:

In comparison with many EU countries, the trade relation of Finland to Viet Nam is quite modest. The two-way trade volume reached 228,7 million USD and 235 million USD in 2009 and in 2010 respectively. So far the FDI of Finland is worth over 60 million for 6 projects. During the Viet Nam’s visit by Finnish President Tarja Halonen in February 2008, two sides signed the Agreement on Investment Protection. Finland also inaugurated the Consulate General in Ho Chi Minh City in May 2008 and followed by the opening of the Bureau for Trade Promotion Finpro in HCMC at the beginning of the year 2009.

Early this March, the MPI of Viet Nam and Nokia signed the MOU on investment cooperation in Viet Nam. Nokia will build a new plant in Vietnam, which promotes Vietnam's growing role as a manufacturing hub for global electronics firms. The cost of the new site near Hanoi is around 200 million euros (US$276.3 million) and is due to open in 2012.  

4. Education and training:

The number of Vietnamese students studying in Finland is about 500. On the Finland’ visit paid by Deputy Prime Minister and Minister for Education and Training Nguyen Thien Nhan in February 2009, two sides signed the Framework Agreement on Education and Training cooperation. According to the Agreement, Finland will assist Viet Nam in training doctorates in the fields such as Informatics, Health, Environment, Forestry and Fishery.

5. Labour cooperation:

In October 2008, Viet Nam was the first country outside of Europe that Finland selected to implement the pilot programme “migrants worker”. There was a group of 18 Vietnamese workers sent to Finland on this occasion. Due to the economic crisis, the program is temporarily suspended but Viet Nam remains a priority for the program after economic recovery in Finland./.

(April, 2011)