PANO - The state-level visit of President of Iceland Ólafur Ragnar Grímsson to Vietnam, at the invitation of President Truong Tan Sang, marks an important milestone in the Vietnam-Iceland bilateral relations and demonstrates both sides’ determination to fully tap the bilateral cooperation potential.
>> Icelandic President’s visit to enhance bilateral ties
Located in the Nordic region, near the Arctic Circle in the Atlantic Ocean, the island state of Iceland has severe weather with the temperature never exceeding 11.2 degrees Celsius all year round. In spite of a modest population of only about 329,000 people living in the total area of approximately 103,000 square kilometers, the island enjoys a high annual average per capita income of over USD 51,000, among the highest in the world.
Iceland has a social market economy combined with the principles of the liberalized market economy. In fact, Iceland’s industry is not diversified while its natural conditions are not unfavorable for agricultural production. Therefore, foreign trade plays a vital role.
Prior to 2008, Iceland used to maintain a high economic growth rate, low unemployment rate and even income. However, Iceland was also hit hard by the global financial-economic crisis. In 2009, the Gross Domestic Product (GDP) of Iceland fell sharply and the island experienced a double-digit inflation rate while the unemployment rate soared to 9% after nearly 20 years of no unemployment.
However, thanks to a good economic recovery program, banking system reform, reinforcement of financial supervision and tight spending, the economy of Iceland has relatively and sustainably recovered compared with other European economies, enjoying growth for five consecutive years now. In recent years, the economy of Iceland has been strongly shifted with more focus on the assembly industry, services, software development, biotechnology and tourism. With its abundant hydropower and geothermal power resources, Iceland has attracted large flows of foreign investment.
Vietnam and Iceland have maintained their fine relationship since the two countries established the bilateral diplomatic relations in 1973. The two sides have exchanged high-ranking delegations, including the visit to Vietnam by Icelandic Prime Minister David Oddsson in April 2002, the visits to Iceland of Vietnamese Prime Minister Phan Van Khai in September 2002 and Deputy Prime Minister Hoang Trung Hai in September 2011.
Vietnam and Iceland have signed agreements on avoiding double taxation, investment promotion and protection, and air transport. However, trade value between Vietnam and Iceland remains low and the bilateral trade turnover remains modest. The major exports of Vietnam to Iceland include wood products, textiles and vegetables. Meanwhile, Iceland mainly exports seafood materials and a small number of machines to Vietnam. Last year’s bilateral trade turnover stayed at US$ 6 million and the figure rose to US$ 9 million in the first half of this year. This shows a great potential for development of the economic and trade cooperation between Vietnam and Iceland.
The visit to Vietnam of President of Iceland Ólafur Ragnar Grímsson is a good opportunity for the two countries to promote and tap the full potential of the cooperation, creating opportunities for businesses of both sides to work together, and head for the early conclusion on the negotiations of the free trade agreement between Vietnam and the European Free Trade Association, of which Iceland is a member.
The visit also creates a chance for the two sides to exchange views on regional and international issues of common concern.
Basing on the fine relationship, we strongly believe that the visit to Vietnam of President Ólafur Ragnar Grímsson will be a success, contributing to boosting substantial cooperation for the practical benefits of the two peoples.
The People’s Army Newspaper
Translated by Huu Duong