New Zealand and Viet Nam

New Zealand and the Socialist Republic of Viet Nam established diplomatic relations on 16 June 1975. But it was not until 1995 that New Zealand opened its Embassy in Ha Noi, and Trade New Zealand (now New Zealand Trade and Enterprise) established a commercial office / Consulate-General in Ho Chi Minh City. In May 2003 Viet Nam officially opened its own Embassy in Wellington.

Cooperation and contact between our two countries has flourished in the last 15 years, boosted by Viet Nam’s rapid economic growth and its deepening regional and global integration into the Asia-Pacific region and wider world. Our bilateral relationship now features regular high level political visits, expanding trade and business links, ongoing development assistance (ODA) and expanding cooperation in newer areas such as science and technology, two-way investment, education links and trade in services. These fresh opportunities consolidate some lasting, traditional ties such as the New Zealand Aid Programme’s “English Language Teaching for Officials” (ELTO) Programme, which has seen several hundred mid-level and senior Vietnamese officials spend extended time in New Zealand since the early 1990s.

In September 2009 the General Secretary of the Communist Party of Viet Nam Central Committee H.E. Mr Nong Duc Manh and New Zealand Prime Minister Rt Hon John Key issued a Joint Statement on a bilateral Comprehensive Partnership, which identifies areas for priority bilateral cooperation and development in the period 2009-2013. Work has already started to give effect to the Comprehensive Partnership in a wide range of sectors including trade and business, science and technology, agriculture, education, defence, policing, development assistance and customs cooperation. An Action Plan containing specific initiatives to help implement the Partnership was signed by respective foreign ministers in Hanoi in July 2010.

Political exchanges and parliamentary links

Regular senior leaders’ visits in both directions have occurred over the past several years.

In May 2005 Prime Minister Phan Van Khai marked the 30th anniversary of 30 New Zealand/Viet Nam diplomatic relations by a visit by to New Zealand. President Nguyen Minh Triet visited as Head of State in September 2007, and Deputy Prime Minister (and then Minister of Education) Nguyen Thien Nhan in February 2008. In September 2009, General Secretary Nong Duc Manh’s visit added to this pattern of high-level contact.

Prime Minister John Key reciprocated by coming twice to Viet Nam in 2010, including a bilateral visit in July to commemorate 35 years of bilateral diplomatic relations. Viet Nam’s role in 2010 as Chair of ASEAN and the EAS saw Minister of Foreign Affairs Hon Murray McCully and other New Zealand ministers also visit Viet Nam that year.

Contact between respective parliaments/legislatures has also increased. Members of Viet Nam’s National Assembly led by Chairman Nguyen Van An visited New Zealand in July 2004. Since then, several Vietnamese Parliamentary and other delegations have visited New Zealand to study topics such as governance and the role of the Ombudsman, defence and security, science and technology, education, economic policy, judicial systems and indigenous peoples’ policies. A New Zealand/Viet Nam Parliamentary Friendship Group, designed to forge greater links and understanding between our two parliaments was established in July 2007. The New Zealand Speaker of Parliament Hon Dr Lockwood Smith visited Viet Nam in April 2009, and the Vice-President of the National Assembly Dr Uong Chu Luu visited New Zealand in June 2010.

Major New Zealand visits to Viet Nam:

• Oct 2003: Rt Hon Helen Clark, Prime Minister
• May 2004: Hon Trevor Mallard, Minister of Education
• Jul 2004: Hon Phil Goff, Minister of Foreign Affairs and Trade
• Nov 2005: H.E. Dame Silvia Cartwright, Governor-General
• Jun 2006: Hon Phil Goff, Minister of Trade (APEC)
• Nov 2006: Rt Hon Helen Clark, Prime Minister (APEC Leaders Meeting)
• Feb 2008: Hon Rick Barker, Minister of Veterans’ Affairs/Civil Defence
• Mar 2008: Hon Chris Carter, Minister of Education/Ethnic Affairs
• Apr 2009: Hon Lockwood Smith, Speaker of Parliament, & cross-party MPs
• Jan 2010: Hon. Murray McCully, Minister of Foreign Affairs
• Mar 2010: Major General Rhys Jones, New Zealand Chief of Army
• July 2010: Rt Hon John Key, Prime Minister
• July 2010: Hon. Murray McCully (ASEAN Regional Forum)
• Oct 2010: Hon Wayne Mapp, Minister of Defence (ASEAN Defence Mins +)
• Oct 2010: Prime Minister Rt Hon John Key and Hon. Murray McCully, Minister of Foreign Affairs (including EAS Summit)

Major Vietnamese visits to New Zealand:

• Feb 2004: Foreign Minister Nguyen Dy Nien
• May 2005: Prime Minister Phan Van Khai (30th anniversary of dip relations)
• Oct 2006: Vice President Madame Truong My Hoa
• Sep 2007: President of Viet Nam, HE Mr Nguyen Minh Triet,
• Feb 2008: Deputy Prime Minister/Minister of Education and Training Hon Nguyen Thien Nhan
• Sep 2009: General Secretary of the Central Committee of the Communist Party of Viet Nam, H.E. Mr Nong Duc Manh
• Jan 2010: Vice Minister, Mr Nguyen Quan of Science & Technology
• Feb 2010: Vice Minister of Foreign Affairs, Mr Doan Xuan Hung
• Feb 2010: Vice Minister of Industry & Trade, Mr Nguyen Thanh Bien
• Mar 2010: Vice Minister of Transport, Mr Nguyen Hong Truong
• Mar 2010: Vice Minister of Defence, Lt Gen. Nguyen Chi Vinh
• Jun 2010: Vice Chairman of National Assembly, Dr Uong Chu Luu

In addition to these bilateral exchanges, our leaders, ministers and officials meet regularly in multilateral and regional fora. These include the United Nations, the World Trade Organisation (WTO), the Asia-Pacific Economic Community (APEC), the East Asia Summit (EAS), the ASEAN Regional Forum (ARF, where New Zealand has dialogue partner status), and the Asia-Europe Meeting (ASEM), which New Zealand recently joined as a member.

Trade

Bilateral trade has grown significantly since New Zealand and Viet Nam signed a trade agreement in July 1994. Viet Nam subsequently made a series of commitments to simplify its trading regime and adopt international standards in areas such as customs valuation procedures and product classification as part of its accession to the WTO in January 2007. As a result, Viet Nam’s trading regime has become more transparent and consistent, although challenges remain.

Most recently, the ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA) which entered into force on 1 January 2010 has provided fresh opportunities for bilateral trade, migration and capacity-building assistance between New Zealand and Viet Nam. The AANZFTA includes two NZ-Viet Nam migration side-agreements. Both countries are also now amongst the nine countries negotiating a new Trans Pacific Partnership (TPP) free trade agreement, alongside Australia, Brunei, Chile, Malaysia, Peru, Singapore and the United States.

Total two-way trade (2010-11): NZ$699 million

NZ exports to Viet Nam: NZ$445 million (year to June 2011, provisional)

Main NZ exports: Dairy products (over 50 per cent of total exports); timber and wood products; ferrous waste and scrap, live cattle, hides/skins, unwrought lead and fruit.

Viet Nam exports to NZ: NZ$253 million (year to June 2011, provisional)

Main Viet Nam exports: Calcium phosphates, furniture, footwear, petroleum, crustaceans, coconuts and nuts, and coffee.

Services trade is not captured in the above statistics, but the export of education, tourism, and consultation services has become an increasingly important component of the economic relationship. In 2009-10 over 1500 Vietnamese students travelled to New Zealand for study, at all levels from short-course training to doctoral research. We estimate that 10,000 – 15,000 New Zealand tourists visit Viet Nam each year.

Click here for more information on trade opportunities.

Official Development Assistance (ODA)

Click here for information on The New Zealand Aid Programme in Viet Nam.

Defence / Police / Customs

In 2001, the New Zealand Defence Attaché based in Bangkok was accredited to Viet Nam. New defence cooperation activities are being developed, including training opportunities for Vietnamese military in New Zealand. NZ navy ships HMNZS Te Kaha and HMNZS Endeavour visited Ho Chi Minh City in 2002 and 2004, and again in August 2006. Significant NZ defence visits to Viet Nam include the Chief of Army in 2004, the NZDF Command and Staff College in 2005, the Chief of Defence Force in 2008, the Chief of Army in March 2010, and Minister of Defence Hon Wayne Mapp in October 2010 (to participate in the first ASEAN Defence Ministers Plus meeting, chaired by Viet Nam). Viet Nam’s Vice Minister of Defence visited New Zealand in early 2007.

New Zealand Police and Customs Attachés were cross-accredited to Viet Nam from Bangkok in 2003. New Zealand provides capacity-building assistance to Viet Nam in both areas in response to requests from Vietnamese counterpart agencies.

People-to-people links

There is a small permanent and semi-permanent community of perhaps 700-800 (estimate only) New Zealanders living in Viet Nam, mainly in Ho Chi Minh City but also in Hanoi as well as residents in central Vietnamese cities such as Quy Nhon, Danang and Nha Trang. Many are businesspeople and teachers. The Vietnamese community in New Zealand is thought to number around 4000 people.

An increase in education links has seen more Vietnamese students and their families visit New Zealand in recent years, but outward tourism to New Zealand is still in its infancy. Going the other way, however, available data suggests that at least 1000 NZ tourists a month visit Viet Nam, with high-end and group tourism building on traditional ‘backpacker’ visits.

In recent years several groups of New Zealand veterans have visited Viet Nam to commemorate ANZAC Day and other significant dates.

The Asia New Zealand Foundation works to promote people-to-people links between New Zealand and Asia, including Viet Nam, through support for youth, media and cultural exchanges as well as other activities. The ANZF also partners the Diplomatic Academy of Viet Nam to hold periodic “Track Two” political dialogues between respective academics and research communities.

Other ad hoc cultural exchanges also take place. For example, a water puppet troupe from Hanoi will perform at the 2011 Auckland Arts Festival.