Eight MoUs signed to promote cooperation :

Sri Lanka – Vietnam trade to hit $ 1 b

Trade between Sri Lanka and Vietnam could potentially reach US$ 1 billion in the coming years thanks to an oil and gas cooperation pact and other business sector initiatives signed during a historic visit to Sri Lanka by Vietnam President Truong Tan Sang, Vietnamese media reported yesterday.

The Saigon GP Daily, an official publication of the Communist Party of Vietnam, said the two sides have agreed to strive for US$ 1 billion in two-way trade, following talks between President Mahinda Rajapaksa and President Truong Tan Sang, who was accompanied by a 60-member business delegation.

The Vietnamese President has affirmed that the visit, with the signing of agreements on increasing two-way trade and investment, will mark a new development in the Vietnam-Sri Lanka relations as well as open new opportunities and create more favourable conditions for the business communities in both countries.

The Vietnamese President reiterated Vietnam’s firm resolve to support Sri Lanka to achieve its economic goals and stability.

President Rajapaksa had noted that Sri Lanka has attained peace and political stability and embarked on a national reconciliation process. Sri Lanka has set a target of becoming a middle-income country and a maritime and aviation hub linking the Middle East and Asia, he said.

The highlight of his visit was the signing of eight Memoranda of Understanding(MoUs)aimed at promoting cooperation in a variety of sectors such as political, defence, finance, industry and trade, investment, education and petroleum. Sri Lankan business leaders interacted with their Vietnamese counterparts during a business forum, which is likely to generate more trade and investment opportunities between the two countries.

Participants at the forum said two-way trade between Vietnam and Sri Lanka has seen a drastic rise in recent times and is expected to reach US$ 100 million this year and then grow exponentially.

The two countries see great potential for cooperation in oil and gas, telecommunications, agriculture, seafood processing, construction and tourism, they said.At this forum, Vietnamese Deputy Premier Nguyen Xuan Phuc invited the business entrepreneurs from both sides to set up business linkages and become catalysts to spur trade between the two countries. Delivering the keynote speech, the Deputy Prime Minister emphasized the importance of maximising collaboration between the two countries in promoting economic and commercial interests including opportunities for greater cooperation in trade, investment, tourism and other potential sectors. He expressed Vietnam’s keen interest in exploring investment opportunities in Sri Lanka.

Minister of External Affairs Prof G. L. Peiris highlighted the prospects available for the Sri Lankan and Vietnamese Governments as well as the private sector to embark on commercial undertakings in either country under the new MoUs. The Minister also briefed the Vietnamese delegation on the business and investment opportunities in the North and the East.

Vietnam and Sri Lanka established diplomatic ties in 1970 and ties have improved remarkably during the past few years. Vietnam re-opened its embassy in Colombo during President Sang’s visit.