Downer says Hanoi committed to economic reform
HANOI - Australian Foreign Minister Alexander Downer said on Saturday that
Vietnam's leadership was committed to economic reforms but he urged the government to make life easier for investors.
Downer also said Australia had agreed a fresh four-year bilateral aid programme to Vietnam worth $A236 million ($153 million) to take effect from July 1. The last four-year programme was worth A$200 million.
``It is important that there is a simple, predictable, investment regime in Vietnam if foreign investment is going to be attracted and remain in this country,'' he told a news conference.
``I'm glad to say that the prime minister and other ministers I've spoken to have emphasised their commitment to the economic reform programme.''
Downer, who arrived on Friday and will leave on Tuesday, said he had met with Prime Minister Phan Van Khai, President Tran Duc Luong and Foreign Minister Nguyen Manh Cam.
Foreign economists and businessmen have criticised Vietnam's leadership for being too slow to cut red tape, provide more investment incentives and to curb corruption. Foreign investment fell 40 percent to $5.1 billion in 1997 from the previous year.
``What Australian business wants is simple, predictable and relatively easy access to the Vietnamese market, particularly for investors,'' Downer added.
``I think frankly from my discussions here the Vietnamese government is very responsive to the needs of business.''
Downer also said next week Australia and Vietnam would hold their first regional security talks at the officials' level. This would focus on regional security, he said.
Canberra had a ``close and constructive relationship'' with Vietnam and Prime Minister Khai would hopefully visit Australia later this year, he added.
Downer also said he discussed the human rights situation in Vietnam with Foreign Minister Cam and said he looked forward to more dialogue between the Australian embassy in Hanoi and Vietnam's powerful Ministry of the Interior.
Downer's visit took place during the 25th anniversary of the establishment of diplomatic ties between the two countries.
In a news release on Thursday, Downer said Australia was the 12th largest investor in Vietnam with investment projects worth A$800 million. Bilateral trade was worth A$823 million in 1997. (A$ 1 = US$ 0.65)
REUTERS, April 25, 1998.
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