New cooperation horizons between Vietnam and Hungary and the UK

National Assembly Chairman Vuong Dinh Hue pays an official visit to Hungary and the United Kingdom from June 26-30 at the invitations of the two countries’ parliamentary leaders.

The visit reflects the Vietnamese parliament’s activeness and proactiveness in external affairs, aiming to continue implementing the 13th Party Congress’s foreign policy, maintaining and deepening bilateral relations, while enhancing trust with partner countries and affirming Vietnam’s high appreciation for the Vietnam-Hungary comprehensive partnership and Vietnam-UK strategic partnership. The visit aims to promote exchanges with partners, strengthen connectivity, and promote cooperation, especially the effective implementation of the EU-Vietnam Free Trade Agreement and the UK-Vietnam Free Trade Agreement.

Hungary has completely transitioned to a market economy since the 1990s. After being hit hard by the global financial crisis in 2008, the Hungarian economy began to recover in 2010. In 2018, Hungary was one of the fastest-growing economies in the EU. Its key industries include the manufacture of machines and precision measuring equipment, automobiles, aluminium, oil refining, chemicals, pharmaceuticals and medical equipment. Hungary’s major agricultural products are wheat, corn, sunflower seeds, sugar beets, meat and poultry, and dairy products.

With regards to foreign policy, Hungary continues to prioritise integrating deeply into the EU while reinforcing relations with neighbouring and regional countries and restoring and promoting ties with traditional partners. In Southeast Asia, Vietnam is one of the main priorities in Hungary’s foreign policy.

Vietnam-Hungary cooperation becomes more effective and substantive

Vietnam and Hungary have a relationship with a history of more than 70 years since the establishment of diplomatic relations. Through over seven decades with the ups and downs of history, the friendship and cooperation between the two countries have been constantly developing, reaping many good results. During the fight for national liberation and reunification in the past as well as the national construction and development today, Hungary has given Vietnam great affection and valuable assistance.

In recent years, Vietnam-Hungary relations have achieved positive progress, especially, when the two countries upgraded their relations to a Comprehensive Partnership on the occasion of General Secretary Nguyen Phu Trong’s visit to Hungary in 2018, which demonstrated the determination of the leaders of both countries in promoting bilateral relations.

Despite being negatively affected by the COVID-19 pandemic, parliamentary cooperation between the two countries has still been guaranteed. The two sides have closely and effectively cooperated and supported each other at multilateral parliamentary forums and jointly contributed many initiatives to regional and international parliamentary organisations.

Despite several difficulties due to the pandemic, in 2020, for the first time in history, two-way trade reached nearly 1.3 billion USD. Two-way trade in 2021 was also maintained at 1.1 billion USD. In addition, Hungary has also considered Vietnam a priority partner in its official development assistance (ODA) policy. Up until now, Hungary has had 15 valid FDI projects in Vietnam with a total registered capital of 50.66 million USD, ranking 55th out of 105 countries and territories having direct investment in Vietnam. It can be affirmed that the cooperation relationship between the two countries is on the way towards strong development.

During the difficult period due to the COVID-19 pandemic, solidarity and friendship between Vietnam and Hungary have been shown more clearly. The sympathy, sharing and helping each other during the pandemic is a testament to the deep friendship and sustainable solidarity between Vietnam and Hungary.

During a visit to Vietnam in January 2022, the First Officer of the Hungarian National Assembly Márta Mátrai thanked Vietnam for donating medical masks and some anti-epidemic equipment to Hungary in the early stages of the fight against COVID-19. The Hungarian government has also donated hundreds of thousands of test kits and doses of COVID-19 vaccines to Vietnam.

Education and training is a traditional field of cooperation between the two countries. Hungary has helped train thousands of officials and engineers and many of them are holding important positions in the State apparatus as well as in the socio-economic life of Vietnam. Currently, Hungary is also an EU country that has offered 200 scholarships to Vietnam per year.

In multilateral forums, especially at the United Nations and within the framework of the Eurasian Summit, the two countries have maintained effective cooperation. The Hungarian National Assembly has actively supported the signing and ratification of the EVFTA and is the first EU member state to ratify the Investment Protection Agreement (EVIPA). The EVFTA has been implemented since August 2020, creating a strong impetus to promote trade exchange and investment cooperation between Vietnam and EU countries in general and with Hungary in particular.

General Secretary Nguyen Phu Trong meets Hungarian Prime Minister Viktor Orban during his official visit to Hungary in September 2018. (Photo: VNA)

General Secretary Nguyen Phu Trong meets Hungarian Prime Minister Viktor Orban during his official visit to Hungary in September 2018. (Photo: VNA)

Prime Minister Nguyen Xuan Phuc and Hungarian Prime Minister Viktor Orban witness the signing of a cooperation document on the implementation of the Financial Cooperation Framework Agreement between the two governments on September 26, 2017. (Photo: VGP)

Prime Minister Nguyen Xuan Phuc and Hungarian Prime Minister Viktor Orban witness the signing of a cooperation document on the implementation of the Financial Cooperation Framework Agreement between the two governments on September 26, 2017. (Photo: VGP)

National Assembly Chairman Vuong Dinh Hue welcomes First Officer of the Hungarian National Assembly Márta Mátrai in January 2022. (Photo: quochoi.vn)

National Assembly Chairman Vuong Dinh Hue welcomes First Officer of the Hungarian National Assembly Márta Mátrai in January 2022. (Photo: quochoi.vn)

The Hungarian Government donates 100,000 doses of the AstraZeneca COVID-19 vaccine and 100,000 rapid test kits to Vietnam on September 21, 2021. (Photo: VNA)

The Hungarian Government donates 100,000 doses of the AstraZeneca COVID-19 vaccine and 100,000 rapid test kits to Vietnam on September 21, 2021. (Photo: VNA)

Located in Western Europe, between the North Atlantic Ocean and the North Sea, the UK is known as the country of fog. The UK economy is a capitalist market economy, largely based on the private sector (accounting for 80% of output and 75% of employment) and is one of the most globalised in the world, with the policy of free trade and anti-protectionism. The UK is an important member of the OECD and WTO while London is one of the world’s most important financial centres along with New York and Tokyo.

 The UK is also a permanent member of the United Nations Security Council, a member of NATO and G7 and head of the Commonwealth of 54 countries, as well as a member of many other important international organisations.

December 24, 2020, marked an important milestone for the UK when the UK Government and the European Commission reached an agreement on UK-EU relations after Brexit, officially completing the process of the UK leaving the EU. 

From 2016 up until now, the UK has strongly promoted the policy of “global Britain”, focusing on strengthening external economic relations, under which, the UK has negotiated FTAs ​​with many countries. The UK also advocates strengthening its voice and coordinating with Germany and France on hot issues such as Iran, Myanmar, and Syria, in addition to strengthening cooperation with countries in the Commonwealth. The UK also consolidates and develops relations with the Asia-Pacific region, including Vietnam.

The UK attaches great importance to the strategic partnership with Vietnam

Established in 1973, the relationship between Vietnam and the UK has developed strongly. In March 2008, the two countries’ leaders issued a Joint Statement affirming the enhancement of Vietnam – UK relations in a deeper, more effective and stable manner towards the “partnership for development". On the occasion of Deputy Prime Minister and Foreign Minister Pham Gia Khiem’s visit to the UK in September 2010, the two countries signed a Joint Declaration on the establishment of Vietnam – UK strategic partnership.

On the occasion of the visit by UK Secretary of State for Foreign, Commonwealth and Development Affairs and First Secretary of State Dominic Raab on September 30, 2020, the two sides released a new Joint Declaration on the Vietnam-UK Strategic Partnership, with seven priority areas of cooperation, while affirming that the two countries have raised the relationship to a higher level for another ten years.

Regarding trade, the UK supported Vietnam joining the World Trade Organisation and supported the EU’s recognition of Vietnam as a market economy. The trade relations between Vietnam and the UK have grown rapidly since 1990. During the 2010-2018 period, the bilateral import-export turnover increased by an average of 17.8% per year. In 1998, the UK established the British Business Group Vietnam (BBGV) to strengthen economic relations with Vietnam and charity activities in Vietnam.

The two sides officially signed a free trade agreement in London on December 29, 2020. As it inherited EVFTA, the UK – Vietnam Free Trade Agreement (UKFTA) consists of necessary adjustments to ensure compliance with the bilateral trade framework between Vietnam and the UK. The UKVFTA will create a comprehensive, long-term and stable framework for economic and trade cooperation between the two countries.

Regarding education and training, the UK has paid great attention to the development of its cooperation with Vietnam in this field, with the presence of the British Council in Hanoi, Da Nang and Ho Chi Minh City. The country has also actively boosted the participation of leading British universities in training linkages and developing higher education institutions in Vietnam.

Regarding science and technology: The UK has participated in cooperation activities using atomic energy for peaceful purposes as well as research and innovation to promote economic development and social security in Vietnam. On November 28, 2013, Vietnam’s Ministry of Science and Technology and the British Embassy in Hanoi signed a memorandum of understanding (MoU) on cooperation in using atomic energy for peaceful purposes.

Regarding cooperation at international and regional forums: The two sides have cooperated closely and effectively during Vietnam's tenure as a non-permanent member of the United Nations Security Council during the 2008-2009 and the 2020-2021 terms. Both sides were members of the United Nations Human Rights Council for the 2014-2016 term. The two sides have properly maintained coordination at multilateral forums, especially the United Nations and its Security Council, and within the framework of the Asia - Europe Meeting (ASEM) and ASEAN - UK.

The Vietnam News Agency reported that NA Chairman Vuong Dinh Hue hosted a reception in Hanoi on May 30 for British Ambassador to Vietnam Gareth Ward. The Vietnamese top legislator appreciated the fine developments in the cooperation between the Vietnamese National Assembly and the British Parliament over the past years. The two sides have maintained delegation exchanges at all levels, as well as meetings and consultations at multilateral parliamentary forums, especially at the Inter-Parliamentary Union (IPU), and the Asia-Europe Parliamentary Partnership (ASEP). He emphasised that the effective cooperation between the two legislative bodies is an important factor contributing to further promoting the Vietnam - UK Strategic Partnership.

UK Prime Minister Boris Johnson welcomes Prime Minister Pham Minh Chinh to the COP26 Conference in November 2021. (Photo: VGP)

UK Prime Minister Boris Johnson welcomes Prime Minister Pham Minh Chinh to the COP26 Conference in November 2021. (Photo: VGP)

National Assembly Chairman Vuong Dinh Hue receives UK Ambassador to Vietnam Gareth Ward on May 30, 2022. (Photo: VNA)

National Assembly Chairman Vuong Dinh Hue receives UK Ambassador to Vietnam Gareth Ward on May 30, 2022. (Photo: VNA)

The UK presents 415,000 doses of vaccines against COVID-19 to Vietnam in August 2021. (Photo: British Embassy in Vietnam)

The UK presents 415,000 doses of vaccines against COVID-19 to Vietnam in August 2021. (Photo: British Embassy in Vietnam)

Vietnamese students studying in the UK under the British Government's scholarship programme. (Photo: British Embassy in Vietnam)

Vietnamese students studying in the UK under the British Government's scholarship programme. (Photo: British Embassy in Vietnam)

NA Chairman Vuong Dinh Hue’s official visit to Hungary and the UK affirmed the aspiration and determination to further deepen the Vietnam-Hungary comprehensive partnership and the Vietnam-UK strategic partnership. Based on the good cooperation achievements in the past, the visit will create new momentum for Vietnam - Hungary and Vietnam - UK relations in all fields.

Production managers: NGOC THANH-BÍCH HANH
Content: MINH HANG, NGUYEN HA
Translation: NDO
Design: HAI BINH - VU TUAN