Prime Minister Pham Minh Chinh (L) and his Luxembourg counterpart Xavier Bettel (Picture: VNA)Hanoi (VNA) – The upcoming go to by Prime Minister of the Grand Duchy of Luxembourg Xavier Bettel, the primary by a Luxembourg PM to Vietnam in over 20 years, is anticipated to make the friendship and partnership between the 2 international locations deeper and extra substantive.
The go to, spanning from Could 3-5, will open a collection of actions to mark the fiftieth anniversary of the Vietnam-Luxembourg diplomatic relations (1973-2023).
Vietnam and Luxembourg have shared a sound partnership over the previous half a century, with common exchanges of high-level delegations.
Most not too long ago, in December 2022, Prime Minister Pham Minh Chinh made a fruitful official go to to Luxembourg, bringing the bilateral partnership to a brand new improvement interval in a complete, sensible and efficient method. In the course of the go to, leaders of the 2 sides agreed to arrange a strategic partnership in inexperienced finance at an early date. Luxembourg agreed to assist the event of a brand new monetary centre in Ho Chi Minh Metropolis and strengthen cooperation with Vietnam in commerce, funding, education-training, science-technology, and inventory market.
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Additionally they concurred to extend the alternate of delegations in any respect ranges, particularly excessive stage in 2023, whereas collectively organising actions to have fun the fiftieth anniversary of their diplomatic relations.
The sound bilateral political relationship has motivated the financial and commerce cooperation between the 2 international locations. As of March 2023, Luxembourg had invested in 64 tasks price 2.6 billion USD in Vietnam, rating third amongst 24 EU international locations and seventeenth out of 139 international locations and territories investing in Vietnam. The tasks are largely within the fields of communications, building and actual property in Hanoi, HCM Metropolis and Ba Ria-Vung Tau province.
Two-way commerce has elevated by years from 96 million USD in 2019 to 110.7 million USD in 2020, and 181.6 million USD in 2021 after the Vietnam-EU Free Commerce Settlement took impact. Final yr, the determine hit 187.1 million USD, up 69% over 2020, with Vietnam’s exports price 130.14 million USD.
On the event of PM Chinh’s official go to to Luxembourg final yr, the 2 sides signed a Memorandum of Understanding on cooperation in selling, strengthening and creating commerce relations and enterprise dialogue between the Vietnam Commerce Promotion Company below the Ministry of Business and Commerce and the Luxembourg Chamber of Commerce.
Vietnam and Luxembourg signed three cooperation programmes for the 2002-2005, 2006-2010, and 2011-2015 intervals, price 35 million EUR, 50 million EUR, and 42 million EUR, respectively, specializing in Vietnam’s calls for and improvement objectives for explicit intervals. Luxembourg determined to not signal such programmes from 2015 onwards, as Vietnam grew to become a middle-income nation. Nonetheless, consultants from Lux-Dev, the help and improvement company of the federal government of Luxembourg, have continued to help Vietnam in finalising Luxembourg-funded tasks.
The mechanism of Vietnam – Luxembourg Partnership Committee additionally resulted in 2017 following Vietnam’s middle-income standing. Its final assembly was held in January 2017 in Hanoi.Â
In 2000, authorised by the PM, the chief of the State Financial institution of Vietnam (SBV) signed a Protocol with the Prime Minister of Luxembourg, below which the 2 sides agreed to develop cooperation within the banking and finance sectors, particularly in monetary expertise coaching and switch.
Because of the protocol, tons of of coaching programs have been held for officers from the SBV in addition to administration officers from business and State-owned banks of Vietnam.
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In the meantime, the partnership amongst Vietnamese business banks and Luxembourg companions is optimistic. By the top of 2022, Vietnamese business banks had established greater than 20 correspondent banking relationships with Luxembourg business banks with a complete income of cost and cash switch by this method reaching almost 800 million USD. By means of this correspondent banking system, Vietnamese organizations have supported cost and cash switch actions of the 2 international locations’ traders and companies.
Following the success of the challenge, the Authorities of Luxembourg continued to assist Vietnam within the monetary and securities sector by one other challenge to strengthen the capability within the monetary sector. The target of the challenge is to help the event of Vietnam’s inventory market in accordance with the Securities Market Growth Technique for the 2011 – 2020 interval.
At present, the 2 sides are implementing an cooperation settlement between the Vietnam Inventory Alternate and the Luxembourg Inventory Alternate, which was signed in December 2022 on the event of Prime Minister Pham Minh Chinh’s go to.
The 2 international locations are additionally working collectively in direction of the institution of bilateral strategic partnership in inexperienced finance, aiming for sustainable and inclusive improvement, and implementing round economic system in direction of inexperienced development.
In addition to, each side have agreed to develop their collaboration in different fields equivalent to local weather change response, surroundings, tradition, and training and coaching.
On the identical time, Vietnam and Luxembourg have maintained conferences and contacts at multilateral boards equivalent to ASEM and throughout the framework of ASEAN-EU relations and the United Nations. Each international locations are members of the UN Human Rights Council.
Following the success of PM Chinh’s go to final yr, the official go to by PM Xavier Bettel is anticipated to provide an opportunity for each side to reaffirm the shared willpower to carry their ties to a brand new top./.
VNA