(VOVworld)- Hungarian President Áder János and his wife began an official visit to Vietnam on Thursday. The visit aims at strengthening the traditional friendship and multifaceted cooperation between Vietnam and Hungary.
Hungary has an annual GDP of about 197 billion USD and its income per capita is nearly 20,000 USD. In the early 1960s, Hungary began liberalizing its economy and has shifted to a market economy since 1990. Since 1997, Hungary’s economy has been stable with an annual GDP growth rate of between 4 and 5%. In its foreign policy, Hungary prioritizes its integration into the EU and boosting relationships with neighboring countries, focuses on energy diplomacy, and restores and promotes ties with traditional partners in Southeast Asia including Vietnam. Hungary attaches great importance to expanding relations with Vietnam in realizing its Look East Strategy.
Hungarian President Áder János and Vietnamese President Truong Tan Sang |
6-decade relationship
The traditional friendship and multifaceted cooperation between Vietnam and Hungary have developed steadily over the past 65 years. Hungary has supported Vietnam’s national construction and defense. In the movement “Vietnam, we are by your side”, Hungary conducted several blood donation drives and other donation campaigns to help Vietnam. Hungary is a member of the International Commission of Control and Supervision of the Paris Accord in Vietnam. It has helped train nearly 3,500 Vietnamese scientists, and cleared Vietnamese debts dating before 1973. When the political regime in Hungary changed in the early 1990s, Vietnam-Hungary ties faltered but have flourished since 1992.
The two countries have strengthened trade ties with two-way trade turnover reaching 148 million in 2013. As of August this year, trade had reached 113.5 million USD. Vietnam exports to Hungary electronics and electric accessories, wood furniture, spare pump parts, compressors, fans, and seafood, and imports pharmaceuticals, machinery, chemicals and animal feeds. Hungary now has 12 FDI projects in Vietnam with a total registered capital 1of 47.3 million USD. These include a project of the Crest Asia Vietnam Company which began in 2008 with a total investment of 40 million USD. In 2009, the White Stone Company launched a real estate project worth 2 million USD. The Amdocs Vietnam Company invested 2 million USD in a information communication project in Vietnam.
Hungary considers Vietnam a priority partner in its ODA policy. Since 2004 a Hungary-funded ODA program of raising fresh water fish has been in place and a number of Vietnamese delegations have visited Hungary. In 2005 Hungary granted Vietnam non-refundable aid of 600000 USD. In 2006 a project to create crocodile leather products for export worth 110,000 USD was launched. Hungary’s ODA commitment to Vietnam has increased on a yearly basis. The two countries signed a culture cooperation program in March, 2013. Hungary has helped to train Vietnamese experts and provided scholarships to Vietnamese students. There are about 4,000 Vietnamese living in Hungary.
Enhancing Vietnam-Hungary ties
The traditional friendship between Vietnam and Hungary has developed steadily over the years. The two have enhanced their political relationship through delegation exchanges. President Truong Tan Sang’s visit to Hungary boosted the bilateral ties. In its Look East policy, Hungary attaches a great importance to enhancing its relationship with Vietnam.
Despite the rapid development of bilateral ties in the last few years, the outcomes have not matched the two countries’ potential. Through President Ader Janos’s visit to Vietnam, both countries hope to expand their bilateral cooperation in number of fields.