In earlier articles the Embassy gave information on the official visit of the Vietnamese Prime Minister Nguyen Tan Dung.to Hungary in September, during which agreements were signed. Below is a detailed introduction to four of these:

1/
AGREEMENT
BETWEEN THE GOVERNMENT OF THE REPUBLIC OF HUNGARY AND THE GOVERNMENT OF THE SOCIALIST REPUBLIC OF VIETNAM ABOUT THE ESTABLISHMENT OF A FRAMEWORK PROGRAMME FOR
FINANCIAL CO-OPERATION

Signatories

Hungarian side: Prime Minister Gordon Bajnai

Vietnamese side: Prime Minister Nguyen Tan Dung

Main points of the Agreement

The total value of the projects financed under the tied aid credit line is maximum 60 Million EUR in favour of Vietnam.

Tied aid credit is an internationally accepted method, and applied by foreign donors i.e. EU Member States. The development priorities of the beneficiary countries are in the focus, while at the same time the credit facility helps the enterprises of the donor state implement such investments in the recipient country, that without this type of financing would be out of reach for them.

An important condition of the credit line is that at least half of it should be spent on goods and services of Hungarian origin. The projects financed from this facility can be realised by Hungarian companies chosen by a call for tender. 

Hungary, as an EU and OECD member, acts as a donor in the developing world, and thus fulfils its share of the concrete financial commitments undertaken by each and every EU member state.  These commitments are made GDP proportionately, and in case of a new member state like Hungary, are more modest in line with its economic development and output. The tied aid credit is un important tool of the Hungarian international development and co-operation policy. Due to the preferential components, this segment is reckoned in the aid statistics, thus the country could meet its EU commitments while it also creates and strengthens the position of Hungarian companies.  

List of priority areas for realisation under the agreement

On the basis of Vietnamese preferences, the  60 Million EUR can be utilised for the following areas: healthcare infrastructure, environmental protection and education infrastructure including vocational training. The dominant part of the amount is dedicated to one development area (in Can Tho city, Mekong Delta, South Vietnam) for the foundation of  an oncology  hospital. 

Financial conditions

- 18 (eighteen) years tenor, which includes a maximum 3 years grace period and 15 (fifteen) years repayment period
- 0 percent interest rate
- 3,5 years implementation period

2/

MEMORANDUM OF UNDERSTANDING
BETWEEN
THE MINISTRY OF TRANSPORT, TELECOMMUNICATION AND ENERGY
OF THE REPUBLIC OF HUNGARY
AND
THE MINISTRY OF INDUSTRY AND TRADE
OF THE SOCIALIST REPUBLIC OF VIET NAM
ON
COOPERATION IN THE ENERGY INDUSTRY

Signatories

Hungarian side: State Secretary of the Ministry of Transport, Telecommunication and Energy Lajos Oláh

Vietnamese side: Vice Minister Cao Viet Sinh (Ministry of Planning and Investment)

Main points of the Agreement:

Areas: Exchange of experience, technology transfer, R+D activities in the fields of renewable energy and energy efficiency, of nuclear energy, oil and gas exploration and production, cooperation in the field of National Energy Development Programs and energy markets

Methods: Exchange of information and visits by technical experts and high level officials, organizing seminars, workshops and training, and if necessary, setting up joint working groups to implement co-operative areas

3/

PROTOCOL ON COOPERATION
BETWEEN THE MINISTRY OF FOREIGN AFFAIRS OF THE REPUBLIC OF HUNGARY AND
THE MINISTRY OF FOREIGN AFFAIRS OF THE SOCIALIST REPUBLIC OF VIETNAM

Signatories

Hungarian side: State Secretary László Várkonyi

Vietnamese side: Vice Minister Nguyen Quoc Cuong

Main points of the Agreement:

Areas: International political, economic, cultural, and scientific areas

Methods: Periodical and non-periodical bilateral consultations in Budapest and Hanoi or in a third country on the occasion of an international conference or meeting, and can be extended to consultations through their Permanent Representatives at the United Nations or at other international organization.

Background: In the 90s a Protocol was signed between the two Foreign Ministries, but due to the significantly changed international circumstances (Hungary’s EU membership, both countries’ participation at the ASEM – Asia Europe Meeting cooperation - as well as Vietnam’s 2008/2009 and Hungary’s planned nonpermanent seat on the United Nations Security Council ) the two countries expand and put on a new basis the protocol signed earlier.

4/

MEMORANDUM OF UNDERSTANDING
between the Office of Immigration and Nationality of the Republic of Hungary
and
the Ministry of Foreign Affairs
of the Socialist Republic of  Vietnam

Signatories

Hungarian side: State Secretary Dezső Avarkeszi

Vietnamese side: Vice Minister Nguyen Quoc Cuong

Main points of the agreement

Areas: Reciprocal assistance and cooperation in the fields of migration and citizenship

Methods:  Information exchange on laws and regulations, procedures, documents in general, and on the country of origin upon specific requests,  exchange of best practices, providing opportunities for experts to participate in trainings and seminars