35 Years of Vietnam - Germany Relations: Underpinned by Broad and Warm Ties

The year 2010 is considered a banner year and a good opportunity for Vietnam and Germany to promote each other and enhance friendship and multi-faceted cooperation as both countries celebrate the 35^th anniversary of bilateral diplomatic ties (1975-2010). In addition, this year is also named “German Year in Vietnam” and “Vietnamese Year in Germany”. These events are a good start for exchange programmes in politics, economics, culture, education, and science-technology areas in 2010.

Vietnam and Germany officially established diplomatic relations on September 23, 1975. In the past 35 years, the two countries have exchanged numerous high-level visits including the visit by Chancellor Helmut Kohl to Vietnam(1995); the visit of President of Federal Parliament Wolfgang Thierse to Vietnam (2001); the visit of President Horst Koehler to Vietnam(2007), the visit of Chancellor Gerhard Schroeder (2004), Foreign Minister Frank Walter Steinmeier (2008), the visit of former Prime Minister Vo Van Kiet to Germany (1993), President of National Assembly Nong Duc Manh to Germany (1993); former Prime Minister Phan Van Khai (2001); and Secretary General Nong Duc Manh (2004). Especially in 2008, bilateral relations were given substantial momentum by the foreign Minister’s visit to Vietnam and the visit of Prime Minister Nguyen Tan Dung to Germany. Also during the visit in 2008, the German Foreign Minister signed a cooperation agreement to promote the rule of law with his Vietnamese counterpart. This has helped Vietnam gradually establish an independent judiciary and a state based on the rule of law.

 

Fostering cooperation in trade and investment In the past 35 years, Vietnam and Germany have maintained a good relationship in economics, trade, culture and education. Germany remains Vietnam’s largest EU trade partner and the biggest importer of Vietnamese goods in Europe. In 2009, Vietnam’s exports to Germany accounted for 19 % of Vietnam’s total export volume to 29 countries in Europe. In 2009, total trade volume reached over US$4.5 billion (an 8 % decline from 2008). Vietnam’s major exports to Germany (in trade value order) include footwear, textiles, coffee beans, timber, fisheries and leather. The primarily imports from Germany are machinery and equipment.

 

In terms of investment, German investment in Vietnam is still short of its potential. At present, German investors are involved in 139 projects with total registered capital of US$778 million, ranking 22^nd out of 80 countries/territories investing in Vietnam. Big German corporations investing in Vietnam include Siemens, Deutsche Bank, Metro Cash & Carry, Bosch, Mercedes Benz, adidas, etc. In a recent visit to Germany, Deputy Prime Minister Cum Foreign Affairs Minister Pham Gia Khiem affirmed that Vietnam focuses on creating favourable conditions for German investors in Vietnam.

 

Intensifying ODA programmesSince 1990, Germany committed around one billion Euros of ODA for Vietnam. ODA projects focus on three areas, namely sustainable economic development and vocational training, environmental policy, and natural resources and urban development. In addition, Germany has been supporting Vietnam in tackling climate change challenges and build sustainable forestry. At the same time, Germany pledged 137 million Euros in assistance for the 2009-2010 fiscal year, accounting for nearly 13 % of total European Union ODA to Vietnam.

 

Before 1995, sci-tech cooperation between Germany and Vietnam was primarily training programmes for research officers sponsored by the German Academic Exchange Service (DAAD), CDG, DSE, etc, but now the cooperation has been brought to a new height including regular exchange programs with experts, specialized seminars, and common research projects by experts from both sides. Today, Vietnam is one of the few countries in Asia region in full cooperation with Germany in this area. This is the largest scale bilateral cooperation programme between Vietnam and Germany in terms of number of projects.

 

In addition, according to the MOU signed by Vietnamese Ministry of Science & Technology (MOST) and the German Federal Ministry of Education and Research (BMBF) in 2005, the Germany side provided US$23 million for common research programmes. This is a new model of cooperation ranging from research to manufacturing, attracting participation from Research Institutes, universities and even enterprises. These projects have been bringing useful results and solutions to water and environment issues in some localities in Vietnam. The projects include SANSED in Can Tho (site-adapted decentralised water treatment systems in rural and urban areas) and WISDOM (designing and implementing an Information System for the Mekong Delta from the fields of hydrology, sociology, information technology and earth observation).

 

The recent visit of Vietnam’s Ministry of Science & Technology led by Deputy Minister Le Dinh Tien to Germany demonstrates the cooperation in this area. At the meeting with the Federal Ministry of Education and Research (BMBF) in Berlin, both sides discussed measures promoting cooperation between the two agencies and accelerating scientific and technological cooperation agreements between the two countries in 2010.

Successful education cooperationEducation and training is one of the key segments of Vietnam-Germany cooperation. The construction of Vietnam-Germany University (VGU) in HCMC in 2008 showed that Vietnam and Germany consider education and training cooperation a top priority. The VGU project, initiated by the German Federal State of Hesse, is intended to become a model for bilateral academic cooperation. The VGU is also the first public university to be developed overseas by a German state. Besides, the German Academic Exchange Service (DAAD) – the largest funding organization in the world - awards scholarships annually for Vietnamese students wishing to get a degree at a German institution of higher learning, as well as for faculty who wish to upgrade their qualification. In 2009, DAAD awarded 644 scholarships under various programmes for Vietnam.