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Finland has funded many safe water supply projects in Vietnam |
Located in North Europe and with a population of 5.3 million, Finland relies on exports which hit nearly US$93 billion in 2007, making up one third of the country’s GDP. Its major export items include steel, machinery, transport equipment, electronic and optical appliances, wood and paper products.
Like many other Nordic countries, Finland pays special attention to environmental protection and its drinking water is considered the safest in the world.
Finland is famous for its paper and wood processing industry with 80 percent of its products for export. Every year, it produces approximately 9 million tonnes of paper pulp and ranks second in the world in paper exports, earning nearly US$4 billion.
Since Vietnam and Finland established diplomatic ties in January 1973, bilateral relations have fared well in all areas through regular meetings and exchanges of high-level visits. Finnish President Tarja Halonen visited Vietnam in February 2008, and four months later Deputy Prime Minister Nguyen Sinh Hung paid a visit to Finland. PM Nguyen Tan Dung and Finnish President Tarja Halonen met on the sidelines of the 7th Asia-Europe Summit (ASEM) in Beijing in October 2008. State President Nguyen Minh Triet met with the Finnish PM Matti Vanhanen on the sidelines of the 15th Non-Aligned Movement (NAM) summit in Egypt in 2009.
At the annual Consultative Group meeting for Vietnam in December 2008, Finland committed a record high US$46.63 million in official development assistance (ODA) to Vietnam, up 47 percent from the previous year. To date, its ODA to Vietnam has amounted to nearly US$400 million.
During the 2009-2012 period, this Nordic country is expected to provide aid to Vietnam’s poverty reduction, forestry, water supply and scientific-technological programmes. It is considering shifting its ODA to other areas such as labour, industry and trade policies, innovations, climate change, environmental protection, energy and clean technology.
However, two-way trade between Vietnam and Finland remains modest in comparison with other European Union countries. Bilateral trade last year fetched US$240 million, up 40 percent from 2007, but the figure is expected to fall to US$200 million this year as a consequence of the global financial crunch. Although the two countries signed an agreement on investment protection and promotion, Finland’s foreign direct investment (FDI) in Vietnam has stood at a mere US$60 million spread over six projects.
The two countries signed an agreement on education cooperation during a visit to Finland in February 2009 by Deputy Prime Minister-cum-Minister of Education and Training Nguyen Thien Nhan. Under the agreement, Finland pledged to help train Vietnamese PhD holders in information technology, health care, the environment, forestry and fisheries.
In October 2008, Vietnam was the first country outside Europe to send 18 nationals to work in Finland under the latter’s pilot labour immigration programme. They will review the initial results of the programme and possibly expand it in the coming years. Vietnam will also develop a long-term strategy for sending its workers to Finland to meet its requirements.
During his visit to Vietnam this time, PM Vanhanen is accompanied by representatives of 26 leading Finnish businesses who will attend a Vietnam-Finland business forum in Ho Chi Minh City on November 17.