January 13, 1998 No. 6

CHAN TO LEAD TRADE MISSION TO VIETNAM FOLLOWING VISIT TO LAOS

The Honourable Raymond Chan, Secretary of State (Asia-Pacific), will lead a trade mission to Vietnam from January 15 to 21, following a visit to Laos on January 14 and 15. Mr. Chan will be accompanied by a business delegation representing nine Canadian companies during his visit to Vietnam.

"Vietnam's recent accession to the Asia-Pacific Economic Cooperation (APEC) forum and its commitment to economic reforms have generated a window of opportunity to broaden our bilateral commercial ties," said Mr. Chan. "This trade mission is designed to promote Canadian expertise and technology and to find ways of adapting them to the needs of emerging markets such as Vietnam."

While in Vietnam, Mr. Chan will visit Hanoi and Ho Chi Minh City. In Hanoi, he will make courtesy calls on the Prime Minister, the Minister of Foreign Affairs, the Minister of Finance, the Minister of Industry, the Minister of Planning and Investment, and the Minister of Transportation. In Ho Chi Minh City, he will meet with the Chairman of the People's Committee and visit Canadian and Vietnamese business ventures. In addition to promoting Canadian business, Mr. Chan will discuss political, trade and economic matters, as well as regional issues and human rights.

In Laos, Mr. Chan is scheduled to meet with the Prime Minister, the Minister of Foreign Affairs, and the Chairman of the State Planning Committee to discuss regional issues and topics such as landmines, Canada's bid for a seat on the United Nations Security Council and human rights. Mr. Chan's visit to Laos will mark the first official visit by a Canadian minister since 1973.

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For further information, media representatives may contact:

Hilary Humphrey

Office of the Secretary of State (Asia Pacific)

(613) 995-1852

Media Relations Office

Department of Foreign Affairs and International Trade

(613) 995-1874

This document is also available on the Department's Internet site: http://www.dfait-maeci.gc.ca

Visit to Vietnam of the Honourable Raymond Chan,

Secretary of State (Asia-Pacific),

January 15 to 21, 1998

BUSINESS DELEGATION

Aerospace Training Canada International, Ottawa, Ontario

B A Banknote Co., Ottawa, Ontario

Burns Solicitors, Toronto, Ontario

City Video & Viet Travel, Edmonton, Alberta

Macdonald Dettwiler & Assoc. Ltd., Richmond, British Columbia

Manulife Financial Ltd., Toronto, Ontario

Newbridge Networks Corp., Kanata, Ontario

SNC-Lavalin International, Ottawa, Ontario

Vietnam Exportation & Development Corporation, Port Credit, Ontario

Backgrounder

CANADA-VIETNAM RELATIONS

In 1973, Canada established diplomatic relations with the Democratic Republic of Vietnam (North Vietnam), which was renamed the Socialist Republic of Vietnam in 1976 following official unification with the South. Vietnam reopened its Embassy in Ottawa in 1990; Canada opened an office in Hanoi in 1991, which was upgraded to an Embassy in 1993.

Several high-level visits over the last few years have enhanced Canada-Vietnam relations, particularly the November 1994 visit of Prime Minister Jean Chrétien. At that time, Canada opened a trade office in Ho Chi Minh City, which was later upgraded to a Consulate General. The Prime Minister also visited Vietnam in 1997 to attend the Francophonie Summit in Hanoi.

Although Canada-Vietnam trade is modest, it has risen considerably and there is growing interest among Canadian businesses. The value of Canada-Vietnam trade reached $147.6 million in 1996, up from $111 million in 1995 and from $61.1 million in 1994. The value of Canadian exports to Vietnam in 1996 was $49.8 million, up from $34.8 million in 1995. Imports rose to $97.8 million in 1996, up from $76.1 million in 1995. Major Canadian exports to Vietnam include fertilizers, textiles, chemicals, pharmaceuticals, machinery, pulp and plastics. Principal imports from Vietnam include shoes, coffee, tea, spices, apparel and apparel accessories, leather goods and seafood products.

Hundreds of Canadian business people and delegations have visited Vietnam in the last two years. Canadian companies have invested $25 million in Vietnam since 1988, placing Canada 15th among foreign investors. The Canada-Vietnam Chamber of Commerce is based in Montréal.

Canada is well placed to contribute to, and benefit from, the significant economic reforms under way in Vietnam. Canadian expertise and capabilities match Vietnamese requirements in sectors designated for priority development, such as transportation, telecommunications and energy.

Vietnam's eligibility for official development assistance was restored in March 1990, following Vietnam's withdrawal from Cambodia and the start of its extensive program of economic renewal. Since 1990, Canada has contributed some $119.4 million to Vietnam in official development assistance. Of this total, $18.9 million was disbursed in food aid and humanitarian assistance, and $17.1 million was given to Canadian institutions and private firms to support their development activities in Vietnam.

The strategy for Canadian assistance to Vietnam, developed by the Canadian International Development Agency, focusses on long-term programs that will increase Vietnam's capacity to plan and manage its ambitious reforms; support human-resource development and technology transfer; support the development of a legal and institutional base that will enhance private-sector development; and encourage social equity, poverty reduction, environmental protection, human-rights promotion, the rule of law and public participation.

Following its admission to the Association of Southeast Asian Nations (ASEAN), Vietnam acceded to the Canada-ASEAN Economic Co-operation agreement in 1996 and is eligible to participate in Canadian development co-operation projects designed to benefit ASEAN regional institutions.

In 1996, Canada signed a Memorandum of Understanding to begin the Information Technology Project. This project will help improve the institutional framework for policy development and the implementation of information technology in Vietnam.

December 1997

Backgrounder

CANADA-LAOS RELATIONS

Canadian bilateral relations with Laos have until recently been limited. Canada is endeavouring to strengthen ties both at the bilateral level and in the context of its position as a dialogue partner in the Association of Southeast Asian Nations (ASEAN).

Canada maintained a resident delegation in Vientiane from 1954 to 1973 as a member of the International Commission for Supervision and Control, designed to oversee the 1954 and 1962 Geneva Agreements on Laos. Since 1975, approximately 15 000 Laotians have resettled in Canada. In October 1994, the first ever visit to Canada was made by a Laotian Foreign Minister, H.E. Somsavat Lengsavat. Diplomatic relations are assumed by the Canadian Ambassador in Bangkok, who is accredited to Laos, and the Laotian Ambassador in Washington, who is accredited to Canada.

A modest Canadian private-sector interest has developed as a result of the Laotian economic reforms introduced in recent years. Canada's trade relationship with Laos is very limited, totalling $1.149 million bilaterally in 1996.

Canadian exports to Laos vary from year to year and usually consist of fertilizers, construction equipment and pharmaceutical products. Laos exports textiles and clothing to Canada, and a new textile arrangement has recently been negotiated. Several Canadian firms have shown interest in projects funded by international financial institutions, particularly in the telecommunications and hydropower sectors, in which Canada has considerable expertise.

Canada restored the eligibility of Laos for official development assistance early in 1990, but bilateral funding was limited to Canadian International Development Agency (CIDA) funds for grassroots projects managed by the Embassy. For the 1996-1997 fiscal year, Canada contributed approximately $275 000 in development aid to Laos. The largest part of this aid is still disbursed by the Embassy and focusses on small-scale projects such as rural water-supply projects, the restoration of a non-formal education centre, and training, primarily in health provision.

Laos, which became a member of ASEAN in July 1997, also benefits from CIDA support to regional institutions, through programs promoting regional co-operation and integration, technical assistance and technology transfer.

December 1997