Vietnam - The Emerging Giant

Recently I had the pleasure of hosting the Ambassador to the Socialist Republic of Vietnam, H.E. Nguyn Thi Hoi, at the founding of the Canada/Vietnam Parliamentary Friendship Association.

This marks an important step in the development of parliamentary relations between Canada and Vietnam.

In June 2005, a Vietnamese delegation visited Canada headed by Prime Minister Phan Van Khai along with members of the Vietnamese National Assembly. At that time, the delegation indicated that they were anxious to expand parliamentary relations with Canada, and the Head of the Vietnam Canada Parliamentary Association the Hon. Vu Mao Chairman of the Committee on Foreign Affairs viewed this as an important goal.

There is no question that parliamentary exchanges are critical in enhancing and improving understanding as well as sharing information among parliamentarians.

Why should Vietnam play an important role in our foreign relations in Asia?

Since 1986 when market oriented economic reforms began, Vietnam's economy has continued to perform very well with a GDP growth of 7% in 2004.

Vietnam has succeeded in significantly reducing the incidence in poverty in the last 15 years but it remains a poor country with a per capita GDP of $630 per year. The Vietnamese leadership is committed to economic reform and hopes to join the World Trade Organization later this year. Canada support Vietnams assertion to the WTO and concluded bi-lateral negotiations in June of last year.

During my several visits to Vietnam, I can testify to the dynamic and vibrant economy. There is a sense that the country is on the verge of a new era, both in terms of the economy and in terms of foreign investment.

Vietnam aims by 2010 to complete a commodity based economy, a critical element in becoming an industrialized state by 2020. Trade must become an economic spearhead and must serve as a catalyst for production development and improved living conditions.

Canada as a Pacific nation has seen companies such as Talisman and Manual Life invest in Vietnam. They have over 600 employees working there and part of the reason is the high quality workforce as well as increasing sound infrastructure to support investment development.

The Vietnamese National Assembly passed a comprehensive foreign investment law to encourage economic investment and development.

Canada through the Canadian International Development Agency (CIDA) has been very active with dispersments in 2004 of $29.4 million. Areas of governance, transparency and accountability are central to CIDA's participation in assisting Vietnamese modernization.

Clearly there are areas where enhanced contacts will be important in deals with issues such as Vietnam's human rights record. Although there have been improvements in the Vietnamese legal system in terms of transparency and accountability, more needs to be done.

Although Vietnam ranks only 108th on the UNDP Human Development Index, the country has made tremendous progress in reducing poverty and has undertaken key legal reforms to establish the rule of law.

Canadian relations have improved since the execution of Canadian Nguyen Thi Hiep in 2005 for drug smuggling. Both countries have successfully enhanced consular access and fair treatment for Canadian prisoners in order to prevent this type of situation from occurring in the future.

The importance of our bi-lateral relations are highlighted by our work together in a Francophonie, the Association of Southeast Asian Nations (ASEAN) - Vietnam will become the country coordinator for Canada this August for the next three years, APEC which Vietnam is hosting and the United Nations, where Vietnam is seeking a seat on the UN Security Council for 2008 - 2009.

From people to people contact - an agreement was signed concerning allowing Canadians to adopt Vietnamese children, to the recent agreement signed between Toronto and Ho Chi Minh City - a Friendship Cities mini-twinning agreement, and with over 250,000 people of Vietnamese origin living in Canada, there is an increased sense of awareness and opportunity in this part of Southeast Asia.

The United States and other western states are very active in Vietnam and we must continue to expand our horizons and become even more engaged in this dynamic country.

The establishment of the parliamentary association is another signal of our growing engagement in Asia.