Viet Nam, Sri Lanka agree on ambitious two-way trade target

COLOMBO — Viet Nam and Sri Lanka have agreed to strive for one billion USD in two-way trade in the years to come.

The two sides reached the consensus during talks between Vietnamese State President Truong Tan Sang and his Sri Lankan counterpart, Mahinda Rajapaksa in Colombo yesterday during a three-day State-level visit to Sri Lanka.

President Sang said that Viet Nam and Sri Lanka have always supported each other in their respective struggles for national independence in the past as well as in the current period of national development. He expressed his belief that the visit will help further strengthen the friendship and co-operation between the two nations.

President Mahinda Rajapaksa informed his guest of the country's situation, saying that after a 30-year civil war, Sri Lanka has attained peace and political stability as well as completed the process of national reconciliation.

Sri Lanka has set a target of becoming a middle-income country by 2016 and a maritime and aviation centre linking the Middle East and Asia, he said.

The two leaders expressed their joy at the development of bilateral relations since the two countries set up diplomatic ties in 1970.

They agreed that the re-opening of the Vietnamese Embassy in Sri Lanka in April 2011 and the signing of eight co-operative agreements between the two sides' ministries and agencies during this visit are vivid manifestations of an aspiration to further strengthen bilateral ties.

The two sides expressed determination to promote existing potential for co-operation in all fields towards the building of a comprehensive partnership between Viet Nam and Sri Lanka.

The leaders also spoke highly of the two countries' close co-ordination at regional and international forums, especially the UN, the Non-Aligned Movement (NAM), the South-South Co-operation, the Colombo Plan, and the World Trade Organisation (WTO).

On the occasion, the Sri Lankan President recognised Viet Nam as a market economy and affirmed support for the country's bid to become a member of the UN Human Rights Council for the 2013-2016 term.

The two sides affirmed a wish and determination to boost co-operation in the interest of the two countries' people as well as for peace and stability in the region and the world at large.

After the talks, the Vietnamese and Sri Lankan presidents witnessed the signing of co-operative documents between their relevant ministries and agencies, including memoranda of understanding on machinery manufacturing, defence co-operation, bilateral political consultations, financial co-operation and investment encouragement co-operation.

An agreement on educational co-operation, a MoU on oil and gas co-operation and a Viet Nam National Oil and Gas Group (PetroVietnam) oil sale contract were also signed.

On the same day, President Truong Tan Sang attended the Sri Lanka-Viet Nam Enterprises Forum, which created an opportunity for businesses to access information on the investment environment and policies of the two countries.

Many enterprises reported that the export-import turnover between Sri Lanka and Viet Nam remained modest, though it had been increasing steadily every year, reaching about US$93 million in 2010.

Enterprises also commented that there was significant untapped potential between the two countries in the fields of petroleum, telecommunications, agriculture, construction and tourism.

Speaking at the forum, Sang affirmed that sustainable development was Viet Nam's prioritised target in the next ten years. The nation would focus on stabilising its macro-economy and on restructuring and renewing the model of economic growth, in order to improve its competitiveness in the international economy in the upcoming years.

Sang stressed that a number of agreements on enhancing two-way investment promotion and trade signed during the working visit would create new opportunities for co-operation between the business communities of the two countries.

On Thurday, President Sang granted an interview with the Daily Financial Times.

He said that through his first visit to South Asia, Viet Nam wanted to further promote friendly co-operation with countries in the region, including Sri Lanka.

The visit was also an opportunity to increase in-depth discussions regarding peace and development co-operation in the region and the world, he said.

October 15, 2011

Source: VNS