OVERVIEW OF VIETNAM-SWEDEN RELATIONS

1. Diplomatic and political relationship:

Sweden was the first among Western countries to recognize and establish diplomatic relations with Viet Nam (11/01/1969). The Embassy of Sweden was opened in Viet Nam in June 1970 and the Vietnamese Embassy was opened in Sweden in July 1970.

Sweden was a Western country where the anti-America movements supporting the struggle for national independence and unification of Vietnamese people took place strongly and early. Sweden also supported Viet Nam in the Doi Moi process at the earliest and assisted Viet Nam in getting contact with the financial and monetary institutions such as IMF, WB.

On December 22^nd, 2010, the Swedish Government unexpectedly announced that due to recent budget cuts, it would close the Swedish embassy in Hanoi during 2011. It is now decided that the embassy will be officially closed at the end of December 2011. The Swedish Embassy in Bangkok will be responsible for all matters regarding Viet Nam. Visa applications to Sweden will be handled by an embassy in the Schengen area based in Ha Noi (the specific country has not yet been decided). Commenting on such a decision of the Swedish Government, the Spokeswoman of Vietnamese Ministry of Foreign Affairs said “Viet Nam regrets that the Swedish Government decided to shut down its embassy in Hanoi and in other nations due to budgetary difficulties, this is Sweden’s internal affairs. Viet Nam always attaches importance to its traditional friendship and cooperation with Sweden which have been maintained and developed by generations of leaders and people during past years. We wish that both sides will continue to boost bilateral cooperation in the future through appropriate measures and forms to meet the two countries’ aspirations and benefits. Vietnam is willing to provide favourable conditions for Sweden to soon re-open its embassy in Viet Nam when it finds it favourable”.

Exchange of delegations:

On the Sweden’s side there were the visits led by Prime Minister Carl Bildt in 1994, Speaker of the Parliament Birgitta Dahl in 1995, Deputy Prime Minister Lena Hjelm – Wallen in 1999; Foreign Minister Anna Lindh in 2001, H.M. King Carl XVI Gustaf and Queen Silvia in 2004, Prime Minister Goran Persson and Minister for Foreign Affairs Laila Freivals in 2004.

On the Viet Nam’s side there were the visits led by Chairman of the National Assembly Nong Duc Manh in 1993, Prime Minister Vo Van Kiet in 1995, Party’s General Secretary Le Kha Phieu in 1999, Prime Minister Phan Van Khai in 1999, Deputy Prime Minister Vu Khoan in 2003 and 2004, Standing Deputy Prime Minister Nguyen Sinh Hung in 2008.

2. Economic, trade and Investment relationship:

The two way trade volume in 2009 reached approximately 630 million USD (38 % increase in comparison to 2008) and 492 million USD in 2010. The main export goods of Viet Nam to Sweden are footwear, textiles, food. Viet Nam imports from Sweden machinery equipments, household equipments.

In term of investment, the total FDI of Sweden in Viet Nam is 460 million USD, mainly in telecommunication and electricity equipments. The project of Telecommunication Corporation Kinnevik/Comvik alone has the capital volume of total 340 million USD. Many Swedish companies have been set up in Viet Nam since the early 1990s and operated successfully like Ericsson, IKEA, ABB, Electrolux and SKF.

3. Development Cooperation:

Sweden is the first Western country to grant ODA to Viet Nam. In the period 1970 – 1990, Sweden granted mostly non returnable ODA with total amount worth nearly 6 billion SEK (equivalent 950 million USD) to assist Viet Nam in building and rebuilding industrial factories.

The big projects implemented in this period are namely Bai Bang Paper Plant (500 million USD), Pediatric Hospital Hanoi (38 million), Uong Bi Hospital (25 million USD),…

From 1990 up to now, the Swedish development assistance has focused on market economy, integration in regional and international economy, administrative reform, justice, environment protection, health, poverty reduction, training.

In the period 1990 - 1998, the total ODA amount was about 1.630 million SEK (230 million USD) and has continuously increased respectively in the 1991 – 2001 period - 510 million SEK (about 60 million USD); in the 2002 – 2003 period: 645 million SEK (about 70 million USD); in the 2004 – 2006 period: 975 million SEK (about 130 million USD); in 2007: 300 million SEK.

In 2009, two sides signed the Agreement on Development Cooperation for the period 2009 – 2011 worth 70 million USD in total. At the CG meeting in Hanoi December 2010, Sweden pledged to allocate Viet Nam 18.03 million USD for 2011, a decrease of 12.56% compared to 2010. Sweden is phasing out development cooperation with Viet Nam and will stop allocating ODA to Viet Nam by the year 2013.

With the celebration of the 40^th anniversary of Viet Nam-Sweden diplomatic relations in 2009, the two sides started to develop the fine traditional friendship and cooperation towards the “equal partnership for mutual benefits”, with focus on the effective cooperation in economics-trade-investment, cultural-education and science and technology sectors./.

                                                                                    (April, 2011)