OVERVIEW OF VIETNAM – SRI LANKA ECONOMIC RELATIONS
In term of the mechanism for bilateral cooperation, a Joint Commision was established in October 2003 in Hanoi and the first meeting of the JC was held at the same time. The second JC meeting was held on 10-11 August 2009 in Colombo. Sri Lanka – Vietnam Business Council was set up in June 2010.
The two countries have reached agreements on cooperation in many areas:
In the field of trade, the two sides signed trade agreement in 1978, an agreement on economic, scientific and technological cooperation in 1999; MOU on cooperation between VCCI and Ceylon Chamber of Commerce and Industry in 2001; and MOU between Vietnam’s Ministry of Industry and Trade and Sri Lanka’s Ministry of Trade and Consumption in 2002.
In the field of investment, the two sides signed Agreement on Avoidance of Double Taxation in 2005; Agreement on Promotion and Protection of Foreign Investments in 2009; MOU on cooperation to promote two-way investments in 2011; MOU on Financial cooperation in 2011.
In the field of agriculture and fishery, the two sides signed MOU on Cooperation in the fields of Agriculture and fishery in 2006; Action Plan on Agricultural Cooperation for 2010-2011; Action Plan on on Technical Assistance of Vietnam to Sri Lanca in the field of fishery for the period of 2010-2013.
In the field of industry, the two sides signed MOU on Machinery Manufacturing Cooperation and MOU on Cooperation in Petroleum Sector, both during the visit to Sri Lanka by President Truong Tan Sang.
The two countries also signed Agreement on post services in 1976; Agreement on Aviation Services in 1992, Agreement on Tourism Cooperation in 2004.
Outcomes of the economic cooperation so far:
- Trade outcomes: In 2000, two-way trade was US$ 30,1 million (Vietnam exported US$ 14,5 million and imported US$ 15,6 million; 2001 – US$ 31,2 million, ( Vietnam exported US$ 15 million and imported US$ 16,2 triệu; 2002: USS$ 33 million (Vietnam exported US$ 16 m and imported US$ 17 million; 2003 only US$ 15 million; 2004 only US$; 25 million (Vietnam exported US$ 18 million and imported US$ 6 million; 2005: US$ 30.5 million (Vietnam exported US$ 20,1million and imported US$ 10,4 million; 2007: US$ 53,70 million (Vietnam exported 38,77 million and imported US$ 14,93 million; 2008: US$ 61,6 million (Vietnam exported 40 million and imported 21,6 million); 2009: US$ 50,6 million; 2010: US$ 93 million. Main products Vietnam exports to Sri Lanka include gems, machineries, agricultural equipments, rubber, seaproducts, handicrafts, furniture…Main imports include animal feeds, textiles, apparels, leather, plastic and chemicals…
- In term of investments: Upto July 2011, Sri Lanka has 7 projects with the total registered value of US$ 13,5 million, ranking 65/92 nations and territories investing in Vietnam.
Last modified 07-11-2011