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Sida Director General Anders Nordström met Vice Minister of Planning and Investment of Vietnam Cao Viet Sinh in Hanoi 6 October

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Oct 7 2009

A new Development Cooperation Agreement 2009-2011 signed by Sweden and Vietnam

The main areas of cooperation between Sweden and Vietnam in the coming years are Democracy and Human Rights; Anti-corruption; and Environment and Climate change.

These areas have been highlighted in a new Agreement on Development Cooperation between Sweden and Vietnam which was signed in Hanoi on 6 October 2009 by the Director General of the Swedish International Development Agency – Sida, Mr Anders Nordström and the Vice Minister of Planning and Investment Mr Cao Viet Sinh.

The Agreement aims i) to promote enhanced democratic governance and increased respect for human rights, and ii) to promote environmentally sustainable development in Vietnam.

Under the framework of the Agreement, the existing regular development cooperation with Vietnam will be phased out during 2009 – 2013. This follows the rapid progress and development of Vietnam. The Agreement also stipulates that during the phasing out period, Selective Cooperation will be introduced as a bridge between the regular development cooperation and other broader, more equal relations based on mutual interests between stakeholders in the two countries. One of the purposes of the Selective Cooperation, where Partner-Driven Cooperation is to form the major part, is thus to strengthen relations between stakeholders in the two countries that could be sustained beyond development cooperation support. Catalytic development cooperation funds will be used to promote such relations during the phasing out period.

Sweden shall keep available at least two hundred and fifty million Swedish kronor (SEK 250 000 000) for development cooperation between Sweden and Vietnam during the period 1 January 2009 – 31 December 2011.

Swedish support will also be extended to partners outside the Government sphere such as civil society and the private sector. Such support, as well as funds necessary for Sweden to follow up the development cooperation, falls outside the scope of financial resources of this Agreement.

Research cooperation will also be supported for the period 1 July, 2008 to 31 December, 2011 but within the scope of this Agreement through an agreement signed by the parties on 16 June, 2008.

The contribution of resources shall be made in accordance with the requirements laid down in specific agreements between the parties on projects/programmes of development cooperation, and shall be made available on a grant basis.

Sweden may also finance development cooperation with Vietnam through concessional credits and soft loans.

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