Vietnam News Today (May 8): Vietnam, UK Foster Strategic Partnership

President Vo Van Thuong (R) and King Charles III (Photo:VGP)

Vietnamese President attends coronation of King Charles III in London

Vietnamese President Vo Van Thuong attended the coronation of King Charles III at the invitation of the Royal Family of the UK on May 6 in a three-day trip from May 4 to May 6.

On this occasion, the Vietnamese State leader met with King Charles III, and Prime Minister Rishi Sunak.

The coronation of King Charles III and Queen Camilla took place at Westminster Abbey in London with the attendance of more than 2,200 guests, including members of the British Royal Family, and representatives from nearly 130 countries around the world.

Those in attendance also included British politicians and volunteers across the UK, alongside 100 heads of state globally.

On behalf of the Party, State and people of Vietnam, President Vo Van Thuong warmly congratulated the King, Queen, Royal Family and British people, while expressing the confidence that under the reign of King Charles III, Great Britain and Northern Ireland will more and more grow and flourish in the future.

Thuong affirmed Vietnam's recognition of great importance to the development of the Vietnam - UK strategic partnership, and hoped that the King and Royal Family will continue to actively support multifaceted cooperation between the two countries with more comprehensive development in the coming time.

The Vietnamese State leader also cordially invited the King to visit Vietnam at an appropriate time.

King Charles III noted his appreciation for the deep affection and attention given by Vietnamese senior leaders to him and the Royal Family.

He also expressed his impression of Vietnam's achievements in socio-economic development and comprehensive and positive foreign policy implementation over the past time, while hailing the nation's commitment to net zero emissions by 2050. The King emphasized that he personally strongly backs cooperation on climate change adaptation.

He said that AstraZeneca Group's investment of US$50 million to restore forests and landscapes in Vietnam is of great significance. He affirmed that the British Royal Family and the King personally always care and support Vietnam's renewal and development process as well as the Vietnam - UK Strategic Partnership, especially in 2023 when both nations are celebrating the 50th anniversary of their diplomatic ties.

The King said he hopes that over the next 50 years, the two countries will continue to build a better relationship together.

Meeting with President Thuong, the UK Prime Minister highlighted huge potential for cooperation between the two countries, and expressed his nation's desire to further enhance connectivity with Vietnam. He thanked Vietnam for supporting the UK in the negotiation process to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

President Vo Van Thuong also used the occasion to meet with leaders from a number of countries, including the Philippines, France, Germany, Italy, Australia, New Zealand, Switzerland, Slovakia, Austria, Mongolia, Zimbabwe ,Israel, Honduras, and the Republic of Korea.

He also had meetings with President of the European Council Charles Michel, and Secretary-General of the Organisation for Economic Co-operation and Development (OECD) Mathias Cormann, cited VOV.

During these meetings, leaders of countries and international organizations highly appreciated the sound and effective relations with Vietnam and expressed their impressions about the the nation's achievements in socio- economic development in recent years.

State President Vo Van Thuong alongside leaders of countries and international organizations agreed to make greater efforts to further promote bilateral relations in the coming time, thus contributing to peace and common development of the region and the world as a whole.

On the afternoon of May 6 (local time), President Vo Van Thuong left London for Hanoi, successfully concluding his UK trip to attend the coronation of King Charles III at the invitation of the Royal Family and Government of the United Kingdom of Great Britain and Northern Ireland.

Vietnam, UK foster strategic partnership

President Vo Van Thuong and his entourage arrived in Ho Chi Minh City on May 7, concluding their trip to London to attend the coronation of King Charles III at the invitation of the Royal Family of the UK.

The visit demonstrated Vietnam's respect for the Royal Family and the Vietnam-UK strategic partnership, thereby further enhancing the nations’ sound relations and political trust. On the occasion, the President had a series of meetings with heads of state, leaders of countries, and international organisations to affirm Vietnam's position consistent with its foreign policy of independence, self-reliance and openness. Vietnam is committed to making active and responsible contributions to the common work of the international community.

While in London, the Vietnamese State leader met with King Charles III and Queen Camilla, the UK’s Prime Minister Rishi Sunak, House of Commons Speaker Sir Lindsay Hoyle, House of Commons Deputy Speaker Nigel Evans, Secretary of State for Foreign, Commonwealth and Development Affairs James Cleverly, and Secretary of State for Defence Ben Wallace, among others British officials.

At these meetings, on behalf of the State and people of Vietnam, Thuong affirmed that the Southeast Asian nation attaches great importance to developing its strategic partnership with the UK. He said he hopes that the King and Royal Family will continue to actively support deeper and more comprehensive multifaceted cooperation between the countries.

King Charles III said that the British Royal Family and the King personally always pay attention to and support Vietnam’s renewal and development as well as the Vietnam - UK strategic partnership.

PM Sunak noted that the potential for the bilateral cooperation is huge and wished to expand such joint work in various fields. He thanked Vietnam for supporting the UK in the negotiation on the country's participation in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

The British officials shared their view on the significance of Thuong’s visit, stressing Vietnam is a leading partner of the UK in the region as the European nation is accelerating the implementation of its Indo-Pacific strategy, according to VNA.

From right: UK House of Commons Deputy Speaker Nigel Evans, President Vo Van Thuong, and UK Secretary of State for Business, Energy and Industrial Strategy Kemi Badenoch (Photo: VNA)

The two sides expressed their wish to expand and deepen the bilateral collaboration in such potential spheres as national defence-security, green economy, climate change response and renewable energy.

President Thuong also had meetings with the Presidents of the Philippines, France, Germany, Italy, Switzerland, Slovakia, Austria, Mongolia, Zimbabwe and Israel, the Governors-General of Australia and New Zealand, the Vice President of Honduras, the Prime Ministers of the Republic of Korea, Australia, New Zealand, the President of the European Council, and the OECD Secretary General.

During the meetings, the leaders agreed to further bilateral ties in the coming time, contributing to peace, development and prosperity of the region and the world.

According to Vietnamese Ambassador to the UK Nguyen Hoang Long, the President’s trip was the most important event to celebrate the 50th anniversary of the Vietnam-UK diplomatic relations, contributing to creating new momentum for the strong development of their strategic cooperation in decades to come.

Dien Bien Phu Victory – from past to present

On May 7, 1954, the Vietnamese army and people won the historic Dien Bien Phu victory which resulted in the signing of the Geneva Agreement ending the war and restoring peace in Indochina, paving the way for the reunification of Vietnam in 1975. 69 years after the Dien Bien Phu victory, the peoples of Vietnam and France are now fostering friendship and cooperation.

The Dien Bien Phu battle in Muong Thanh valley, Dien Bien province between the Vietnam People’s Army and the French army was the biggest battle of the 1st Indochina war.

President Ho Chi Minh described the Dien Bien Phu victory as the most glorious victory of Vietnam’s history and an immortal epic of the people's war. General Vo Nguyen Giap said Vietnam made a legend come true.

The Dien Bien Phu victory resulted in the signing of the Geneva Agreement to end the war and restore peace in Indochina, abolish the French rule, and recognize the independence of Vietnam, Laos and Cambodia.

Half of Vietnam was completely liberated, ushering in a new revolutionary period of building the North in peace, transitioning to socialism, and preparing a solid rear for national reunification.

The Dien Bien Phu victory not only influenced Vietnam's history but changed the world situation, paving the way for the national independence movements of colonial and dependent countries.

Jean Pouget, Attaché of General Henri Navarre of France, said the Dien Bien Phu victory was referred to by all national liberation revolutions in Asia, Africa, and America. Dr. Christian C.Lentz of the University of North Carolina at Chapel Hill said the Dien Bien Phu battle changed the world. From 1954 to 1964, 17 out of 22 French colonial countries gained independence. In Africa alone, in 1960, 17 countries declared their independence. History calls 1960 "Africa Year".

19 years after the Dien Bien Phu victory, on April 12, 1973, France became one of the first Western countries to establish diplomatic relations with Vietnam. Since the late 1980s, France has helped Vietnam settle debts with creditor countries which were members of the Paris Club - a group of 22 countries with large economies, specializing in providing financial services and loans for national reconstruction, debt grace or postponement, and debt relief for countries who had difficulty in paying.

In 1993, Francois Mitterrand became the first French President to come to Vietnam, marking an important turning point in bilateral relations and in France’s strategies and policies in Southeast Asia and the Asia-Pacific region. He came to Hanoi and declared: “I’m here to close one page of history and to open another”.

On the 40th anniversary of bilateral diplomatic ties in 2013, the two countries signed a Joint Statement, creating a strategic partnership.

Over the past 5 decades, the Vietnam-France relationship has become stronger, deeper and more effective. Since the adoption of the EU-Vietnam Free Trade Agreement (EVFTA), bilateral trade has grown steadily, reaching US$8.5 billion last year, VOV reported.

Benoit Guidée, Director General of the Asia-Australia Department of the French Foreign Ministry (Photo: VOV)

France is now Vietnam's leading trading partner in the European Union and Vietnam’s leading European donor. Vietnam ranks second among France’s ODA recipients in Asia, with a total committed capital of US$18.4 billion since 1993.

Benoit Guidée, Director General of the Asia-Australia Department of the French Foreign Ministry, said: What makes Vietnam-France relations special, beyond political dialogue, is the degree of density in the relationship between the two peoples. More than any other country in Asia, the Vietnam-France cooperation in terms of associations, culture, youth, students or research has grown steadily."

"At the level of friendship associations or local governments, there are always very strong foundations for the relationship between the peoples of our two countries. That is what makes our bilateral relationship especially strong,” he added.

Currently, France is actively implementing a dynamic and comprehensive policy towards the Asia-Pacific region, in which Vietnam plays a pivotal role.

Vietnam considers France an important partner in its foreign policy and constantly works to deepen the bilateral relationship.

Vietnamese Ambassador to France Dinh Toan Thang said "Vietnam-France relations entered a new period of cooperation after 50 years of establishing diplomatic relations with favorable conditions. We have great cohesion and support from the two peoples and our leaders share the same vision for the bilateral relationship in the coming years."

SEA Games 32: Vietnam secures more gold in karate, vovinam events

Karate artists have won two more gold medals for Vietnam at the ongoing 32nd SEA Games in Cambodia.

One of them was secured by Hoang Thi My Tam by beating her Indonesian rival 4-3 in the women's kumite 55kg event, cited VNA.

Hoang Thi My Tam secures a gold medal for Vietnam at the tournament by beating her Indonesian rival 4-3 in the women's kumite 55kg event (Photo: VNA)

In the women's under 68kg categories, Dinh Thu Huong defeated an athlete from the Philippines by 7-4 to seize the gold medal, the fourth so far for the Vietnamese squad in the sport.

In addition, Karate artist Nguyen Thi Ngoan of Vietnam completed her performance in the women's under 61kg category with a bronze medal, according to VNA.

Vietnamese Vovinam artists also obtained two gold medals at the Games on May 7 afternoon. Accordingly, Do Phuong Thao knocked out her Thai rival Kesinee Tabtrai for a 8-5 win in the women’s 60kg combat event, while Nguyen Thanh Liem overwhelmingly won 9-1 against Emmanuel Dailay Cantoresof the Philippines in the men's 60kg combat event.

Vietnam continues to face challenges in Q2/2023: HSBC

After a sluggish GDP performance in the first quarter this year, Vietnam is still not out of the woods yet. In particular, it has not seen the light at the end of the tunnel on the trade front, according to an HSBC report.

The report said as a country particularly exposed to the global trade cycle, external weakness has dampened Viet Nam’s growth. After falling 12 per cent year-on-year in the first quarter this year, exports continued their double-digit decline, falling 11.7 per cent year-on-year in April.

HSBC said that the weakness continued to be broad-based, with key shipments such as textiles, footwear, smartphones and wooden furniture saw notable slumps. However, the only bright spot in April’s data was computer electronics, rising 5.4 per cent year-on-year.

That said, this was a one-off surprise due to base effects, rather than a reflection of the tech cycle bottoming out. While leading indicators such as PMI showed some initial signs of stabilisation, it will still take some time until there is a meaningful rebound in the global electronics cycle. Vietnam is clearly not alone in this while peers such as Taiwan and Korea also continue to struggle in the current electronics doldrums.

Despite weakness in goods trade, services continue to provide some much-needed support. International tourist arrivals moved closer to one million in April, driven by a 70 per cent month-on-month pick-up in Chinese tourists, cited VNS.

Inflation eased to below 3 per cent y-o-y, thanks to lower food and some energy prices. Photo: HSBC

The positive recovery is thanks to easing flight constraints and China’s inclusion of Vietnam as a destination for its group tour resumption in mid-March. However, as a major tourist source with 30 per cent share prior to the pandemic, the recovery pace of Chinese tourists remains gradual, reaching only 25 per cent of the same period in 2019. For example, Korean tourists, another major source, have recovered to 77 per cent.

While tourism can provide some partial support, its recovery will only be a slow process, and will not be enough to offset this year’s challenges. Indeed, growth headwinds can be seen through the lens of extremely sluggish credit growth.

Despite an annual credit growth target of 14-15 per cent and two moves by the State Bank of Vietnam (SBV) to cut its key interest rates in March, loans only grew around 2 per cent by mid-April, half of the growth of the same period in 2022, reflecting ongoing concerns of economic difficulties.

As a result, the authorities have introduced a series of support policies recently, including a VND120 trillion credit package for social housing, a 2 percentage point cut of VAT until end-2023 and plans to restructure some loans.

In particular, there are initial signs of a relaxation in the policy stance towards the property sector, which has been facing a liquidity crunch since last October.

Despite slowing growth, inflation has been better behaved, offering some relief to policymakers. Headline inflation fell 0.3 per cent month-on-month, translating into a benign year-on-year print of sub-3 per cent, moving further away from the SBV’s 4.5 per cent inflation ceiling.

For one, food inflation momentum continued to ease, thanks to a decline of 1.6 per cent month-on-month in pork prices (recall pork inflation has a sizeable impact on overall food inflation).

Meanwhile, energy prices saw a mixed picture. While transport costs rose marginally, due to higher oil prices, other energy inflation, such as electricity and gas, fell.

That said, caution is still warranted on the supply-side of inflation. After all, OPEC’s decision to cut oil production and Vietnam Electricity's (EVN) proposed electricity price hike had not materialised by mid April.

All in all, Vietnam continues to face challenges in the second quarter 2023 after a tough first quarter economic performance.

While it will likely see weak growth in the first quarter this year, the bank expects the services sector to receive a punchier boost and the trade tide to turn in the second quarter, lifting whole-year growth to 5.2 per cent in 2023.

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